Faster Purchases and the Future of Digital Payment

The preference for electronic financial transactions increases everyday, but the trend is to migrate to contactless payments, which will allow consumers to make their purchases 10 times faster than the traditional way.

Wednesday, July 17, 2019

Specialists in the subject explain that unlike the payment methods that until now are the most used in the region, contactless payments simply consist of holding a card in a payment reader to proceed with the transaction.

This way of making payments is generating a transformation of the ways in which everyday purchases are made, as they result in benefits for cardholders, merchants and issuers - acquirers.

Santiago Rega, general manager of Visa Panama, explained to Martesfinanciero.com that "... the transformation of means of payment is coupled with the rise of electronic commerce, a trend that in Panama has increased more than in other Central American countries. We see that e-commerce in Central American countries continues to gain consumer confidence, which is reflected in the growth of this purchasing channel. 12.4% of the total purchases made with Visa credit cards in Central America were made through e-commerce in April 2018 to March 2019'."

The article adds that "... Visa credit card spending through e-commerce in Central America grew 14% from April 2018 to March 2019, compared to the same period up to March 2018. In this period, the greatest growth was seen in Panama with 18% and in Costa Rica with 17%. In Central America, the largest expenditure on e-commerce is made on purchases of airline tickets."

Other experts on the subject predict that in the next three years, the new bets of the digital industry will be focused on making more convenient and efficient payment methods, which will be based on the daily activities performed by people.

Jorge Lemus, Visa Group's general manager for the Caribbean and Central America region, told Prensalibre.com that "... soon there will be a big change in the omnipresence of payments - and in what it means to pay 'in and from anywhere'. Almost any connected device can become a place to buy and pay. This is the new era of online commerce."

Luis Diaz, commercial manager of Mastercard Guatemala, explained that "... That's how new technologies are creating a scenario where the usual method of paying for a product or service is changing. For example, contactless payments allow consumers to make purchases almost 10 times faster than the traditional way, which simply involves holding a card or smart phone in a payment reader to proceed with the transaction."

See Martesfinanciero.com article "El futuro está en el pago digital" and Prensalibre.com article "Los medios de pago electrónico disponibles en Guatemala (y los que podrían venir)".

More on this topic

Selling Online to Stay Alive

October 2019

Changes in consumer preferences, which increasingly value ease, convenience and time savings in their purchases, are forcing companies to strengthen their online marketing channels to stay in competition.

Several companies that have not developed their digital marketing channels in time have gone bankrupt because of the growing competition represented by online sales.

Guatemalans Buy 63% More Online

August 2012

Total online purchases made by Guatemalans during 2011 exceeded by 63% those of 2009.

The information comes from the latest survey by Visa, which includes purchases made by all companies with all credit cards, not only with VISA.

This year the projections are that Guatemalans will buy about $242 million worth of goods online, which would mean an increase of 30%.

Your Company Still Does Not Sell Online?

May 2012

The change in the way that consumers relate to companies that provide services and products is deepening.

E-commerce in Latin America grew by 42.8% between 2010 and 2011, generating an expenditure of $43 billion, which is double the sales in 2009, according to a survey on Electronic Commerce in Latin America conducted by AméricaEconomía Intelligence, and commissioned by Visa.

Prepaid Cards Are Coming

April 2012

Although in Colombia, Venezuela and Peru use of pre paid cards is widespread in Central America they are only in the initial stages of implementation.

Having successfully piloted in South America, MasterCard and Visa intend to introduce and expand the use of the prepaid card in Panama, where the use of this product is in an early stage, as well as the rest of Central America.

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