Thunes: 2021 Was the Year of Ampliacion

Latin America is a vast, untapped market for the payments industry, says Gabriel Carvajlino, V.P., Network Development LATAM at Thunes. As companies look to expand there, expect more demand for seamless, convenient cross-border payment options. Read his thoughts in the PYMNTS eBook, “In a Word: 50 Thought Leaders Sum Up 2021.”

For me, the Spanish word for “enlargement” seems most appropriate to describe a year in which Thunes has made massive strides in growing our Latin American footprint. By extending our services and expanding our network to new markets, Thunes is making cross-border payments simple, fast, more transparent and cost-effective for customers and businesses sending and receiving money.

Home to over 600 million people, Latin America is a vast, untapped market with immense potential.

Many consumers in the region continue to prefer local payment methods when shopping online, making it essential for us to address these preferences. We recently launched partnerships with Bexs Banco, for example, to enable businesses and customers worldwide to make faster, cheaper cross-border transactions to Brazil. 

Key drivers of increasing LATAM cross-border payments include: 

Soaring B2B Cross-Border Payments

Increasingly, businesses in Latin America are seeking more seamless, efficient and secure ways to make cross-border B2B transactions. Forecasts suggest that global cross-border transactions will grow to $156 trillion in 2022, with B2B payments accounting for $150 trillion. Latin America’s share of these transactions is expected to increase significantly due to surging global trade in the region. 

More Cash Sent Home From Overseas

Each year, more money is sent to families and loved ones back home in Latin America from the United States and Europe. Despite the COVID-19 pandemic, The World Bank predicts that remittance flows into Latin America and the Caribbean will surge to a record $126 billion in 2021, registering a rise of 21.6% compared to 2020.

World’s Hottest eCommerce Market

Online shopping is booming — Latin America is the world’s fastest growing regional eCommerce market with roughly 300 million digital buyers, a figure predicted to soar by over 20% by 2025. eCommerce in Latin America is projected to exceed $270 billion in 2021, and 14% of the region’s eCommerce transactions will be cross-border.

Mobile Payments Gaining Momentum

A shift to cashless transactions has gathered momentum in Latin America during the pandemic. Smartphones now act as banks for millions of people in the region who do not have access to a traditional bank account. The next four years will see around 100 million additional smartphone connections in Latin America, taking the total to 532 million by the end of 2025 — an adoption rate of 80%.