At the SIBOS conference in Frankfurt on March 15, 2025, Therese Hudak, Vice President of Commercial for the Americas at PPRO, unveiled a revamped version of the PPRO Almanack. This long-standing industry reference has been transformed into a corridor-based market guide aimed specifically at U.S. merchants looking to expand into Latin America, a region recognized for its rapid growth and intricate digital commerce landscape.
Hudak highlighted that LATAM represents a significant opportunity, with a market value of approximately $633 billion. The region is experiencing swift e-commerce growth, fueled by increasing consumer demand and the rising volume of exports from the United States. Yet, the complexities within LATAM are often underestimated. Each country operates under a distinct regulatory framework, foreign exchange rules, tax structures, reconciliation processes, and preferred payment methods. For instance, Brazil and Colombia frequently rank among the most complex tax jurisdictions globally, making local entry for merchants particularly challenging.
Understanding LATAM’s Payment Landscape
The report emphasizes the importance of adapting to the evolving payment preferences across the region. Hudak noted a remarkable rise in digital bank transfers and digital wallets. Brazil’s PIX, introduced in 2020, has set the standard for instant payments, influencing adoption trends across LATAM. Bank transfers are witnessing annual growth rates of around 30%, while digital wallets are expanding nearly 19% year over year. Additionally, the buy-now-pay-later (BNPL) model is gaining traction, with traditional LATAM installment options being complemented by newer formats emerging from the U.S. and Europe.
One of the major challenges facing U.S. merchants is the authorization rates for payments. Nearly one-third of LATAM cards are not usable for cross-border transactions, which can significantly decrease approval rates from a typical 80-90% to as low as 30% or even lower. To mitigate this issue, local processing has become essential to avoid declines driven by issuer restrictions and fraud detection algorithms.
The Rise of Super-Apps and Subscription Models
PPRO’s insights also delve into the rise of super-apps throughout LATAM. Digital wallets in countries such as Mexico, Argentina, Chile, and Colombia are evolving into comprehensive ecosystems. Platforms like Mercado Pago, Neki, and Rappi now provide consumers with the ability to pay, borrow, and shop all in one place, fundamentally altering digital commerce dynamics in the region.
Furthermore, subscription-based business models are beginning to penetrate the market. As banks and payment systems grow more comfortable with recurring payments, functionality surrounding subscription commerce is expanding rapidly.
The newly designed PPRO Almanack aims to equip U.S. merchants with clarity in a fast-evolving environment. The guide offers not just data but also practical insights into opportunities, risks, and the realities of navigating a diverse and dynamic payments landscape in LATAM.
