Although card payments are growing in this market, a significant percentage of the population doesn’t have a bank account and still relies on cash payments. Besides, processing payments through international cards and international payment methods is hardly possible if you want to see your online business succeed in countries like Brazil, Colombia, or Mexico.
That’s why we’re seeing local payment methods like PicPay in Brazil or MACH in Mexico becoming extremely popular. These methods are easier to use, more in sync with customers’ needs in this region, and grant better acceptance rates.
Joining our list of payment methods in Latin America, there are now Efecty and PSE in Colombia and SPEI in Mexico to help you expand your businesses globally and increase conversion rates in these countries.
Efecty is one of the most popular cash payment vouchers in Colombia and an optimal way to pay online for customers who don’t have bank accounts or a debit or credit card.
With extensive coverage of 99% of municipalities and 8,000 locations in Colombia, Efecty is a trusted and familiar way to pay. It allows businesses to receive payments instantly with real-time confirmation, reducing the potential of refunds and increasing conversion rates.
Efecty only supports payments with the local currency, the Colombian peso. The risk of fraud through this payment method is low because the payer and payee will get a receipt with a serial number (numero de giro), a verification digit (VD), and a national ID number that anyone, including mediators and arbitrators, can verify.
How to pay with Efecty
- At the checkout, the customer selects Efecty as the payment method.
- The customer receives a voucher with a code in their email, to be paid in up to 3 days.
- The customer directs to a filiated Efecty store to pay the voucher.
- The business receives the payment confirmation instantly.
PSE, Pagos Seguros en Línea is the preferred instant e-transfer system in Colombia, supporting nineteen of the most popular banks in the country. PSE was developed by ACH, a financial entity in Colombia that monitors and controls bank transfers.
Users can pay with PSE via the internet, debiting funds from their bank accounts in real-time without the need for credit cards. The payee receives an immediate confirmation, and the payment process takes no longer than twenty minutes to be concluded.
With PSE, Colombian shoppers can pay online directly through their bank of trust without the risk of chargebacks for the business.
How to pay with PSE
- At the checkout, the customer selects PSE as the payment method.
- The user is redirected to PSE to initiate the bank transfer.
- The user confirms the pre-populated payment details and authorizes the payment.
- The funds are debited from the bank account and the customer and the business receive a real-time notification.
The Interbanking Electronic Payment System (SPEI), developed and operated by Banco de Mexico, is a system that allows Mexican customers to make electronic bank transfers and payments in a matter of seconds.
With SPEI, customers can complete instant payments electronically via a bank, the internet, or mobile banking at any time, any day.
All payments and transfers via SPEI are safe because they happen via a private, protected network. Besides, this payment method is irreversible which means there’s no risk of chargebacks.
How to pay with SPEI
- At the checkout, the customer selects SPEI as a payment method.
- The customer is presented with the receiver’s payment information.
- The customer completes the payment through online banking.
- The business and the customer receive the payment confirmation within a minute.
Businesses who want to localize their payment strategies in Colombia and Mexico can add these three payment methods to their options and cover a wider audience of customers for online payments in these countries.
At Switch, we’ve seen merchants optimizing their acceptance upwards of 95% when adopting local payment methods in Latin America.
Through a single integration flow, you can integrate these and many more payment methods in Latin America. Looking to sell more in this region? Contact us.