M-Commerce in Latin America
While Latin American consumer culture is still very much a “cashonomy,” their booming consumer market and interest in mobile technology prove that Latin Americans are ready to benefit from mobile financial services.
Despite the deep divisions in Latin American consumer demographics on the basis of income and financial inclusion, both high- and low-income earners stand to benefit from the expansion of mobile commerce in the region.
Latin Americans are already very familiar with e-commerce, and smartphone penetration in the region is expected to reach 60% by 2017. This combination means that service providers are uniquely positioned to help start the migration from e- to m-commerce by leveraging the existing interest and participation in online consumption.
However, despite their interest in mobile solutions, Latin Americans have demonstrated historical distrust for the institutions that would implement them. Expanding adoption of mobile money in Latin America will require the collaboration of operators, banks, and government in order to rebuild trust: reliable networks with greater coverage, appropriate regulations, and education are the next steps to bringing Latin America into the mobile economy.
Download the compete ConsumerLab report for a more detailed look at the developments and opportunities for m-commerce in Latin America.
At the beginning I felt unsafe and I did not use m-banking, but then I asked the people that already used it if it was safe. They reassured me and I started to use these services.”Male, 24, Brazil