LatAm e-commerce shifts to mid-market optimization
The next growth wave in Latin American e-commerce is expected to be driven by payment processors and Merchant of Record models enabling mid-sized global merchants to bypass complex local infrastructure.
The argument
The speakers argued that while giants like Amazon and MercadoLibre have built proprietary infrastructure, mid-sized players have faced prohibitively expensive entry barriers. By utilizing Merchant of Record partners, these merchants can process local currencies, mitigate FX volatility, and navigate fragmented tax systems without setting up local entities.
The thesis, stress-tested
✓ What validates it
- ✓Increased volume of cross-border transactions processed by LatAm payment service providers
- ✓Reduction in processing fees for mid-sized merchants entering the region
▸ Risks discussed
- ▸High payment decline rates eroding consumer trust
- ▸Severe FX volatility in local currencies
- ▸Complex and fragmented tax regulations across different LatAm countries
Hear it yourself
"three, joined PIPRO three years ago, first as chief commercial officer, and then I took over as a CEO the second half of twenty twenty three. So I've been here for quite some time. Throughout my career, I always worked in payments and very much focusing on understanding the nuances of either different countries or continents when it comes to how do you reach consumers, how you get them to pay in methods that they prefer, how do you help businesses, global businesses to go into to different countries. You know, my"
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