The Bigger Picture
Although credit cards have a huge impact in some LATAM countries (such as Brazil, Chile and Argentina), alternative payment types such as cash, local digital wallets and local card schemes have a significant share of the online checkout.
Below, can be found a list of the main characteristics of the Top 10 Alternative Payment Solutions which are currently covered by BoaCompra as a payment aggregator. These are solutions that don’t directly involve the banking system such as local cards and bank transfers.
Pago Fácil – Argentina
Pago Fácil is the first payment network in Argentina that allows shoppers to make personal payments without any costs. The Pago Fácil agent outlets are regularly visited by consumers to pay (public service) bills, local taxes, grocery shopping and more. Accepting Pago Fácil enables you to reach Argentinean customers who prefer to pay in cash.
Upon checkout, shoppers confirm their details and get a payment voucher. They then go to the nearest Pago Fácil agent to pay for their purchase. The store processes the payment, transfers the information to a Pago Fácil server and stamps the voucher or issues a proof of payment. Pago Fácil reconciles the information and transfers the data and the funds collected to the entities.
Rapipago – Argentina
Rapipago is part of GIRE, a leading financial services company and the largest processor of electronic billing, collection, payment, and transaction processing services in Argentina. The system generates a voucher which can be paid offline at one of the 6,000+ Rapipago payment locations.
During the checkout, the shopper prints a payment coupon. The shopper then makes the payment in cash at any Rapipago payment agent. Once the payment has been received, the merchant is notified so that the product can be delivered.
Boleto Bancário – Brazil
Boleto Bancário is a payment method that only exists in Brazil and is regulated by the Brazilian Federation of Banks, Febraban. This payment method can be used in more than 48,000 different points such as post offices, lottery agents, ATMs, in-person or online at any bank. It can even be used in supermarkets.
It is easy to use anywhere, and a bank account is not mandatory. This method is especially popular among digital consumers who still don’t feel comfortable buying online with their credit card or for those without a bank account.
PagSeguro – Brazil
PagSeguro is a financial technology solutions provider focused on Brazil. Belonging to UOL – the largest content, technology, services and digital payment media company in Brazil – PagSeguro has in its portfolio payment solutions for e-commerce, virtual stores, and for commercial establishments.
The end-to-end digital ecosystem provides a free PagSeguro digital account that offers users the option to securely store their card details on a digital wallet which can be used to make electronic transactions. PagSeguro’s e-wallet centralizes various cash-in options, functionalities services and cash-out options in a single ecosystem.
Servipag – Chile
Servipag is a leading company in the market of transactions, payments and collections, which was created in 1990 by two of the country’s leading financial institutions, BCI and Banco de Chile, as a company oriented to support national bank transfers. Their goal is to provide shoppers with convenient and safe alternatives to pay bills, to process money orders and to perform other financial transactions.
When consumers pay using Servipag, they can choose to pay online (where more than 20 payment options are presented) or to print a voucher which can be taken to any branch store and be paid in cash or in any local payment method.
Via Baloto – Colombia
Via Baloto is an offline cash payment voucher option in Colombia with a payment network reaching close to 96% of the Colombian population. VIA Baloto has more than 13,500 terminals located in more than 1,100 municipalities nationwide.
During checkout, the shopper chooses VIA Baloto. A unique code is generated which can then be taken to any point of VIA Baloto in Colombia (more than 6,000 payment terminals).
Efecty – Colombia
Efecty are nationwide specialists in money orders, payments, recharges and collections with more than 20 years of experience in the market with a network of 8,000 customer service points, located in more than 1,070 municipalities.
When a customer clicks on Efecty at checkout and confirms the purchase, a PIN is issued and with this same PIN the customer can later pay in cash, in Colombian pesos, in any of their customer service points.
OXXO – Mexico
OXXO is a chain of convenience stores with more than 17,000 locations throughout Mexico. It is the largest chain of this kind of store in Mexico. Shoppers without bank accounts – more than 60% of Mexico’s population – can pay cash at their local Oxxo to make purchases from more than one thousand online merchants.
Shoppers provide a 14-digit number reference to the cashier in any OXXO store to make their payment in cash. Retailers are notified in real time and the corresponding amount is automatically transferred to them. With Oxxo, retailers will be able to approach, easily and quickly, the large number of unbanked consumers who wish to make purchases online.
PagoEfectivo – Peru
PagoEfectivo is a popular online payment method in Peru that enables online shoppers to pay for their online purchases without the need of a credit or a debit card. With PagoEfectivo the customer receives a code which can be paid via internet banking or in cash, in any of the 40,000 establishments throughout the country.
Upon checkout, the shopper gets a unique code. The shopper can then access their online banking platform to complete the payment using this code or decide to pay offline in a one of the outlets where the PagoEfectivo can be paid in cash.
Redpagos – Uruguay
Redpagos is a network of payments and collection centers in Uruguay that includes more than 150 stores in Montevideo and more than 100 stores in other regions. It offers services such as bill payments, salary and retirement payments, tax payments, money withdrawals, money orders, collectives, horse betting, topping up of cell phones, and purchase of tickets for sports and artistic shows.
Redpagos allows its customers to use cash to pay offline at an ATM, post office or retail location for goods and services purchased online.
The Future of Alternative Payment Methods
The Alternative Payment Methods (APM) are the future for merchants who want to deliver a shopping experience that consumers are in control over as well as meet their demand for being able to pay according to their needs and lifestyle. Credit cards are no longer the only way to pay online and APMs will provide more options at checkout, thus allowing customers to purchase goods and services in their local currency and with their desired and trusted method of payment.