LATAM Payment Gateway Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.78 Billion |
| Market Size (2029) | USD 13.41 Billion |
| CAGR (2024 - 2029) | 22.87 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
LATAM Payment Gateway Market Analysis
The LATAM Payment Gateway Market size is estimated at USD 4.78 billion in 2024, and is expected to reach USD 13.41 billion by 2029, growing at a CAGR of 22.87% during the forecast period (2024-2029).
- Driven by a surge in digital transformation and e-commerce, the Latin America (LATAM) Payment Gateway Market is witnessing rapid growth. Acting as intermediaries, payment gateways ensure secure online transactions between merchants and consumers, linking financial institutions with e-commerce platforms. This market thrives on high internet penetration and mobile usage, with a clear consumer preference for digital payment. Notable trends include the rise of fintech solutions and government-backed initiatives championing cashless economies.
- Online shopping's surge, especially during the COVID-19 pandemic, has heightened the demand for secure and efficient payment gateways throughout Latin America. E-commerce booms in nations like Brazil and Mexico underscore the pivotal role of digital payments in their ecosystems.
- As mobile penetration escalates, so does the adoption of mobile payment solutions. Latin American consumers' growing preference for mobile wallets amplifies the demand for mobile-centric payment gateways. Technology such as QR codes, contactless payments, and peer-to-peer transactions are also gaining traction.
- Latin America boasts an increasing fintech startup scene, pioneering innovative digital payment solutions. Noteworthy players like MercadoPago and PagSeguro are launching platforms tailored for the region's underserved demographics, nurturing a conducive atmosphere for payment gateways.
- Several Latin American governments are championing cashless transactions to curb fraud and bolster financial inclusion. Their backing is expanding the digital payment infrastructure and cultivating a thriving environment for the payment gateway market.
- However, rural Latin America grapples with financial inclusion hurdles despite the digital payment surge. Limited banking access and digital infrastructure in these areas hinder the adoption of payment gateways, presenting a formidable challenge to market growth.
LATAM Payment Gateway Market Trends
Increased E-commerce Sales and High Internet Penetration Rate
- Countries like Brazil, Mexico, and Argentina are leading a rapid surge in e-commerce transactions across Latin America. As online shopping becomes more prevalent, the need for secure and efficient payment gateways intensifies. As intermediaries, payment gateways connect merchants with financial institutions, ensuring smooth transaction processing and fueling e-commerce growth.
- For instance, as of February 2024, Amazon's Mexican site (amazon.com.mx) garnered an impressive average of 152.4 million visits monthly, solidifying its position as the leading e-commerce platform in Mexico, according to marketing firm SemRush. Trailing closely as its primary rival, Mercado Libre, with almost 147.5 million visits each month.
- Widespread internet access has paved the way for the adoption of digital payments in Latin America. With increased smartphone access and high-speed internet, consumers are shifting from cash transactions to online payment methods. This transition underscores a growing demand for versatile payment gateways adept at managing various payment methods, from credit and debit cards to digital wallets and mobile payments.
- For instance, in August 2024, Claro Argentina chose Nokia as its partner to deploy its 5G infrastructure. The initial focus will be on Argentina's major cities. As part of the agreement, Nokia will supply its advanced 5G AirScale products, encompassing base stations, baseband units, and the latest generation of Massive MIMO radios.
- With rising mobile penetration in the region, mobile commerce (m-commerce) is witnessing significant growth. Consumers increasingly rely on mobile devices for shopping, banking, and bill payments. As a result, payment gateways equipped with mobile-friendly features have become essential for processing transactions on mobile apps, further fueling the sector's expansion.
Brazil expected to Hold a Major Share
- Brazil has one of the highest internet penetration rates in Latin America, with millions of users accessing the internet regularly for various online activities, including shopping and banking. The availability of high-speed internet across urban and rural areas boosts the demand for digital payments, encouraging the use of advanced payment gateways that can handle multiple payment methods and large transaction volumes.
- For instance, in September 2024 - Brazil's telecoms regulator, Anatel, announced that 94.5% of Brazilians now have access to 5G. This milestone came after Anatel granted licenses to operators for the 3.5 GHz band spectrum. Anatel's statement highlighted that licenses were issued for activating 5G base stations in an additional 194 municipalities. This brings the total to 5,002 municipalities connected out of Brazil's 5,570. These connected locations are home to approximately 201.7 million Brazilians, representing 94.5% of the nation's population.
- Furthermore, a survey by CGI.br, the Brazilian Internet Steering Committee in Brazil, from March to July 2023 revealed that approximately 94% of individuals aged 16 to 34 accessed the internet. In contrast, the internet penetration rate for Brazilians aged 60 and above was 51%.
- The Brazilian government has rolled out policies and regulations to bolster the growth of digital payments. The introduction of PIX, a real-time payment system crafted by Brazil's Central Bank, has transformed the payments arena, accelerating transactions and enhancing accessibility. Payment gateways are capitalizing on this platform for smoother integration, amplifying their market share.
- Yet, amidst the robust surge in digital payments, Brazil grapples with hurdles in achieving financial inclusion. A notable segment of the populace, especially in rural locales, remains either unbanked or underbanked. This scenario curtails access to digital financial services and poses a challenge for payment gateways aiming to penetrate these underserved regions. Addressing this issue is pivotal for maintaining Brazil's leading position in the market.
LATAM Payment Gateway Industry Overview
In recent years, the Latin American payment gateway market has experienced significant growth, largely due to the swift digital transformation of the region's economy. A pivotal driver has been the rising adoption of e-commerce platforms, a trend that the COVID-19 pandemic has notably accelerated. Countries in Latin America, including Brazil, Mexico, and Argentina, are increasingly transitioning from traditional payment methods, such as cash, to digital transactions. This shift is bolstered by factors like rising internet penetration, the growing ubiquity of smartphones, and proactive government initiatives to promote financial inclusion and digital payments.
Competition in the Latin American payment gateway market is intensifying. While major global players are making their mark in the region, local companies are innovating and crafting solutions that cater specifically to the market's unique demands.
Looking ahead, the Latin American payment gateway market is set for sustained growth, driven by the surge in digital adoption, supportive regulations, and the relentless expansion of e-commerce. Despite challenges such as ensuring financial inclusion and addressing infrastructure disparities, the market's future appears bright, presenting ample opportunities for domestic and international players.
The LATAM Payment Gateway Market is fragmented with major players like PayPal, Amazon Payments, Inc., etc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
LATAM Payment Gateway Market Leaders
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Amazon Payments, Inc.
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PayPal Holdings, Inc.
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Mercado Pago
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Ebanx S.A.
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WePay
*Disclaimer: Major Players sorted in no particular order
LATAM Payment Gateway Market News
- September 2024: Brazil's central bank unveiled 13 'development themes' as part of the second major phase of its central bank digital currency (CBDC) experimentation. Echoing a global trend, Banco Central do Brasil (BCB) has been delving into the potential launch of its CBDC, dubbed 'Drex,' collaborating with prominent technology and payments firms.
- July 2024: OCN, a Mexican fintech start-up, formerly OneCarNow, raised USD 86 million in a Series A funding round, blending equity and debt. The company focuses on delivering financial services to gig workers throughout the Americas.
LATAM Payment Gateway Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Atrractivness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers?
4.2.2 Bargaining Power of Consumers?
4.2.3 Threat of New Entrants?
4.2.4 Threat of Substitutes?
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Regulatory Landscape Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased E-commerce Sales and High Internet Penetration Rate
5.1.2 Increased Demand for Mobile-based Payments
5.1.3 Growing Adoption of Payment Gateways in Retail
5.2 Market Restraints
5.2.1 Privacy and Security-related Threats Continue to Remain a Concern
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Hosted
6.1.2 Non-Hosted
6.2 By Enterprise
6.2.1 Small and Medium Enterprise (SME)
6.2.2 Large Enterprise
6.3 By End-User
6.3.1 Travel
6.3.2 Retail
6.3.3 BFSI
6.3.4 Media and Entertainment
6.3.5 Other End-users
6.4 By Geography
6.4.1 Brazil
6.4.2 Argentina
6.4.3 Mexico
6.4.4 Rest of Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amazon Payments Inc.
7.1.2 PayPal Holdings Inc.
7.1.3 Mercado Pago
7.1.4 Ebanx SA
7.1.5 WePay
- *List Not Exhaustive
8. ANALYST RANKING OF PAYMENT GATEWAYS IN LATM
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
LATAM Payment Gateway Industry Segmentation
An e-commerce application service provider offers a payment gateway, a merchant service that authorizes credit card and direct payment processing. This service caters to e-businesses, online retailers, brick-and-click entities, and traditional brick-and-mortar stores.
The Report Covers LATAM Payment Gateway market is segmented by type (hosted, non-hosted), by enterprise (small and medium enterprise (SME), large enterprise), by end-user (travel, retail, BFSI, media and entertainment, other end-users), by geography (Brazil, Argentina, Mexico, Rest of LATAM). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Hosted | |
| Non-Hosted |
| By Enterprise | |
| Small and Medium Enterprise (SME) | |
| Large Enterprise |
| By End-User | |
| Travel | |
| Retail | |
| BFSI | |
| Media and Entertainment | |
| Other End-users |
| By Geography | |
| Brazil | |
| Argentina | |
| Mexico | |
| Rest of Latin America |
LATAM Payment Gateway Market Research FAQs
How big is the LATAM Payment Gateway Market?
The LATAM Payment Gateway Market size is expected to reach USD 4.78 billion in 2024 and grow at a CAGR of 22.87% to reach USD 13.41 billion by 2029.
What is the current LATAM Payment Gateway Market size?
In 2024, the LATAM Payment Gateway Market size is expected to reach USD 4.78 billion.
Who are the key players in LATAM Payment Gateway Market?
Amazon Payments, Inc., PayPal Holdings, Inc., Mercado Pago, Ebanx S.A. and WePay are the major companies operating in the LATAM Payment Gateway Market.
What years does this LATAM Payment Gateway Market cover, and what was the market size in 2023?
In 2023, the LATAM Payment Gateway Market size was estimated at USD 3.69 billion. The report covers the LATAM Payment Gateway Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the LATAM Payment Gateway Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
LATAM Payment Gateway Industry Report
Statistics for the 2024 LATAM Payment Gateway market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. LATAM Payment Gateway analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
LATAM Payment Gateway Market Report Snapshots
