Expanding to the Latin American market: payment trends & business specificities
Expansion to other regions or countries looks like a logical option for further developing a business that is overgrowing its domestic market. But the likelihood of failure during this period increases as in any new project: a company accustomed to stability and comfort gets into an unknown surrounding filled with threats. To get through it, businesses should execute research and develop a detailed expansion strategy.
This article is intended to help you in case you decided to expand your business to the Latin American market.
Latin American market overview
Latin America comprises 20 countries and 14 independent territories. The population of the region is over 600 million people. The region represents a whole cluster of promising markets, among which Brazil, Mexico, and Argentina stand out. The market in Latin America is not as highly competitive as in the United States and Europe, where most entrepreneurs with global ambitions work.
Latin America is now ahead of even the United States in terms of high-speed and mobile internet growth. The number of mobile internet users in Latin America is expected to reach 424 million by 2025. Meanwhile, 70% of Latin Americans have smartphones, which makes them one of the most connected populations in the world. This level of internet accessibility opens up new ways and opportunities for communication and, as a result, contributes to rapid growth in many sectors of the economy.
According to Goldman Sachs‘ review of emerging economies, Brazil and Mexico will be in the top 10 largest economies in the world by 2050. All these circumstances make the region attractive for global companies and investors across the globe. Moreover, consumers’ habits have changed since the last year — 2020 made people buy online like never before. It is conditioned upon social isolation and digitalisation, giving lots of opportunities for global companies.