拉丁美洲數(shù)字支付的興起

1、Contents HYPERLINK l _bookmark0 Introduction HYPERLINK l _bookmark1 Latin America: Connected but unbanked HYPERLINK l _bookmark2 6Mexico: CoDi aims to accelerate consumer finance HYPERLINK l _bookmark2 transformation HYPERLINK l _bookmark3 10Brazil: PIX is rapidly changing the way people and HYPERLI

2、NK l _bookmark3 businesses pay HYPERLINK l _bookmark4 14What should key financial stakeholders consider HYPERLINK l _bookmark4 next? HYPERLINK l _bookmark5 About the Authors HYPERLINK l _bookmark6 About Euromonitor International HYPERLINK l _bookmark7 How Can Euromonitor International Help?Introduct

3、ionInternet use in Latin America has jumped from 50% of the population in 2015 to 66% in 2020, mostly driven by young and connected adults, especially in large countries such as Mexico and Brazil. The median age in the region is 31 years-old and 71% of households possess a smartphone. Nevertheless,

4、the consumer finance industry is largely dependent on cash, resulting in a relatively high level of financial insecurity and exclusion across the region. Although the covid-19 pandemic accelerated instant and digital payments, there is room for development in this area to facilitate easier and faste

5、r transactions for businesses and individuals.Several governments within Latin America are implementing strategies aimed at developing a more formal financial sector, hoping to increase market digitalisation, access to financial services, control over tax payments and economic growth. As an example,

6、 Brazil lost approximately US$76 billion due to tax evasion in 2020 according to the Brazilian Institute of Planning and Taxation (ibpt), which could be drastically reduced by more intelligent and traceable payment mechanisms.In this white paper, we explore the current state of digital payments in L

7、atin America, analysing how demographics and specific government initiatives are fuelling development of the sector to help understand the changing payments market in the region. We examine two of the most disruptive digital payment frameworks, CoDi in Mexico and pix in Brazil, and the potential imp

8、act of these systems, both inside and outside the finance industry, and throughout Latin America.Latin America: Connected but unbankedIt is important to analyse demographics and access to technology and consumer finance services in Latin America to understand the potential market for digital payment

9、s. 58% of the population above 18 years old are considered “Young Adults” (between 18 and 29 years-old) or “Middle Youth” (between 30 and 44 years-old). This percentage of “Young Adults” and “Middle Youth” is high when compared to Europe and North America, 44% and 46% respectively. It is also higher

10、 than in Asia Pacific (55%), where technology use and digital payments are already in the day-to-day activities of a greater part of the population.Population Segmentation (2020)Source: Euromonitor InternationalThe large, young population in Latin America has accelerated the adoption and use of tech

11、nological devices, with 71% of the population owning a smartphone in 2020. Latin America had one of the highest smartphone ownership growths in the last five years, even though ownership is still below the developed markets of Asia Pacific (77%), Western Europe (80%) and North America (87%). Smartph

12、one ownership grew 9.2%, just below the Middle East and Africa (12.1%) and above Asia Pacific (7.4%).Latin america3Internet Use (% of total population, 2020)Source: Euromonitor InternationalWhile Latin America closes the gap with other regions in terms of technology access and possession of devices,

13、 phone use continues to be limited to messaging and phone calls. Only 20% of the population uses the internet for banking / financial services and 16% for selling goods or services. There is enormous potential for growth. In North America 82% of the population used the internet for banking services

14、in 2020 and 51% to sell or buy products, so this is where untapped opportunities exist for Latin America.High unbanked population limits the potential to obtain financial servicesThe biggest question governments and companies are asking is how can we empower these potential consumers?. It is not eno

15、ugh to grant people access to mobile internet or smartphones. To expand the digital financial inclusion of the population, efforts must be made to incentivise an adequate ecosystem, expanding payment infrastructure both from the demand and supply side, improving financial literacy and creating incen

16、tives for companies to innovate.Brazil has been successful at providing financial services to a large portion of its population, with 91% of people above 15 years-old banked, meaning they have more than one of the following products: checking account, current account, savings accounts or credit card

17、. This is because two of the largest banks in the country, Caixa and Banco do Brasil, are owned by the state and poverty alleviation programs are run through them.4Latin americaLess than 75% of the population is banked in most of the other large countries in the region, including Mexico, Chile and C

18、olombia. In Peru only 37% of the population is banked and in Argentina it is 51%. This places Peru behind Nigeria and Argentina behind Indonesia in terms of the banked population. Mexico, with 65% of its population banked, is behind Turkey, Russia and South Africa, countries that are in similar deve

19、lopment situations, but offer better mechanisms to add people to the financial system.Unbanked Population (% of population +15 years-old)Source: Euromonitor InternationalThe picture worsens when considering the underserved population, which considers individuals 15 years and older with only one type

20、 of financial product. 61% of Mexicans are underserved and so are 58% of Peruvians. Compare this to countries like China and Russia, who have significantly reduced their underserved populations by digitalising the economy and increasing access to banks. China had 42% of its population underserved in

21、 banking services in 2010, while Russia had 24%. These numbers halved to 21% and 12% in 2020. While Brazilians are in a favourable position, with only 19% of them underserved, these statistics highlight the broader underdevelopment of Latin Americas financial sector.Eliminating cash is key for regio

22、nal developmentIn Latin America cash remains the dominant form of payment, bringing direct and indirect costs to the government, companies and society. Problems associated with high cash use include tax evasion, crime and reduced lending mechanisms.Latin america5Mexico shows a clear example of the d

23、ominance of cash in Latin America. 107 billion cash transactions took place in Mexico in 2020, equivalent to US$345 billion. India, with a population 10 times greater than Mexico, has only four times more cash transactions in value terms. In Brazil there were 41 billion transactions, equivalent to U

24、S$165 billion. Seven out of ten transactions in Latin America are done using cash as the payment method, compared to five out of ten in Western Europe and three out of ten in North America. Cash is still greatly used in Asia Pacific and has similar numbers to those in Latin America, however, the dec

25、line is greater: 85% of transactions in Asia were done using cash in 2010 versus 81% in Latin America; in 2020 this figure declined to 66% in Asia Pacific and 68% in Latin America.Cash Transactions (as a % of total transactions)Source: Euromonitor InternationalAlthough all regions present a decline

26、in cash usage, Latin America shows a slower adoption of alternative payment methods than other regions. Governments and financial players recognise that taking advantage of the high number of people with digital devices and internet access will open new channels and reduce costs through the launchin

27、g of new payment methods. As the economy digitalises, online purchases will become more common and the use of cash will diminish.Mexico, with CoDi, and Brazil, with pix, have launched initiatives to leverage digital infrastructure in favour of financial inclusion, increased competition and reduced c

28、osts. Understanding the similarities and differences between these two initiatives, as well as what they mean for the finance industry, is important to predict the future payments landscape in Latin America.Mexico: CoDi aims to accelerate consumer finance transformationMexicos low levels of financia

29、l inclusion and high cash transfer rates incentivised the Central Bank to launch CoDi in 2019. The goal of the platform is to build upon the Interbank Electronic Payment System (spei in Spanish), which facilitates ach (Automated Clearing House) transactions in Mexico, creatinga mobile phone payment

30、system that facilitates more agile and simpler payments. Payments are done through qr codes, nfc (Near-Field Communication) proximity technology and links on text messages.CoDi allows for instant, free, secure and simpler paymentsBanks in Mexico with more than 3,000 accounts are required to offer Co

31、Di. It is also available for smaller financial institutions and non-financial businesses and users must have an account in a financial institution. The platform does not operate like a digital wallet because funds are not stored on CoDi, instead, they transfer funds between financial institutions.Th

32、e main characteristics of CoDi are:Instant payments: Payments appear instantly on the users accounts, although this was already a standard with spei ach transfers.Cost: Using CoDi is free, like spei.Security: The platform uses secure encryption protocols and validation points for the legitimacy of m

33、essages.Simplicity: Payments can be made very simply using smartphones.Availability: Payments can be made 24/7.Instant transfers are already the norm in the Mexican market thanks to spei. The main advantage of CoDi is simplicity; transfers using spei usually required more steps logging into internet

34、 banking or going to a bank branch.mexico7As of September 2020, the Central Bank estimates 18 million registered users and 28 million transactions. The average transaction amount is MXN $819 (US$ 40).CoDi transfers and users (thousands)Source: Mexican Central Bank (Banxico)Impact on key stakeholders

35、Consumers and merchants will benefit from cheaper and faster options but the impact on financial inclusion is slowConsumers using the CoDi system are winners since they can use a free, simpler, faster and more secure payment method than bank transfers or cash to pay in establishments or make p2p (pe

36、er to peer) transactions. Individuals can also avoid merchant fees constantly transferred to the consumer for using card payments.CoDi aims to foster financial inclusion, creating an ecosystem that increases acceptance of digital payments. However, it is not clear if this will be the outcome in Mexi

37、co. Individuals need an account at a financial institution to be able to use CoDi, hence, most users already had access to the financial system before. Some banks are promoting schemes allowing individuals to remotely open digital accounts, with lower account balances, so that more people can benefi

38、t from the CoDi infrastructure. However, only 36% of the institutions enrolled in CoDi have enabled a digital account opening service. Furthermore, Mexicos Development Bank, which oversees social programs and subsidy distribution, has not enabled this option.8mexicoMerchants are also benefitting fro

39、m the CoDi innovation, since they can accept payments without additional fees. Furthermore, their cash flows are not interrupted since the clearing of funds happens in real time. This is a big advantage compared to the 24 or 48 hours that some transfers may take.Even though there are clear benefits,

40、 CoDi penetration has been slow compared to similar services in other countries. 14% of the population has adopted it in more than a year since launch, according to the Central Bank in September 2020. Whereas, the Brazilian model pix was adopted by 27% of the population within a month. Furthermore,

41、only 448,797 accounts have used CoDi to make a payment. The limitations on account opening, lack of expansion with Mexicos Development Bank, fear of being taxed, a reluctance to give away private information and lack of awareness are all possible explanations for this slow adoption.What are main bar

42、riers for in-person mobile payments in Mexico?Source: Euromonitor Voice of the Consumer: Digital Consumer Survey, fielded March to April 2021As CoDi is adopted it will impact stakeholders, from banks to payment processorsCoDi represents a way for banks to offer a better digital service but could als

43、o decrease the usage of credit cards. Moreover, it is not clear if it will create more competition for banks, since there are not many fintechs or non-financial institutions enrolled. Private non-financial companies like Mercado Libre or Oxxo, a leading convenience store chain, already use similar t

44、echnologies to accept payments, unrelated to CoDi, using their own in-house systems.mexico9It also represents competition for other stakeholders in the financial payments industry, such as acquirers, pos (point-of-sale) providers and payment processors such as visa or Mastercard. They will earn less

45、 from operational fees for card transactions if CoDi continues to be adopted. Since CoDi utilises funds from savings accounts, the impact on credit card transactions is minimal.CoDis main challenge is broadening its adoption by the unbanked, either by developing easier ways of creating remote accoun

46、ts or enabling users to store money without the need for accounts i.e. digital wallets. The latter may be possible with new fintech regulations. Raising awareness of its benefits and creating the right incentives for the private non-financial companies and merchants to adopt it is needed, or it risk

47、s staying as an enhanced banking feature for financially included consumers.Brazil: PIX is rapidly changing the way people and businesses payBrazil has the largest population in Latin America and is one of the most digitally connected. There are more than 210 million people in Brazil and 97% are cov

48、ered by at least a 3g mobile network and 93% have access to a mobile phone. However, financial services are limited to a small number of providers; 81% of all commercial assets are concentrated in five banks, according to the Brazilian Central Bank. Brazilians have few options in terms of investment

49、s, access to credit and are subject to very similar banking fees.To reduce the cost of financial services and transactional fees, the Brazilian Central Bank designed and launched a new payment system called pix in November 2020. It promises to make in-person and digital purchases and sales cheaper,

50、faster and smoother.Pix operation moves consumers to digitalPix operates completely digitally. It allows users to make in-person purchases using smartphone banking apps, which scan qr codes or allows users to manually enter personally identifiable information known as “keys” to share with the payee.

51、 Users have four options for “keys”: cellphone number, cpf (taxpayer identification number), email address or a random “key” that is generated by the financial institution with which the user is associated.Although pix aims to reduce the use of cash during in-person purchases, it has impacted mostly

52、 ACHs and bank wires (in Brazil known as TEDs and DOCs). Pix is ahead of these payment methods for four reasons:Instant payments: Bank transfers take seconds to go from one peer to the other. Old systems took hours and, depending on the transaction, one or two business days to be processed.Data prot

53、ection: TEDs and DOCs require payees to share many different types of information with the payer, including full name, financial institution where he/she would receive, bank branch, bank account and cpf. Pix only requires users to share one of the four keys mentioned above and, if a user does not wa

54、nt to disclose any personal information, they have the option of registering a random key.24/7: pix can be accessed and used every day of the week and at any time. TEDs and DOCs can only be done during working days and hours.BraziL11Costs: pix is free for p2p transfers, while other systems charged b

55、etween R$5 (US$0,95) to R$10 (US$1,90) per transaction in December 2020.In the first month of operation, 27,6 million transactions were done using pix according to the Brazilian Central Bank, with a total value of R$25,1 billion (US$4,8 billion). 57,5 million users were registered, 95% were individu

56、als and 5% were companies. A significant proportion of transactions were business to businesses (b2b), highlighting the importance of pix as a corporate payment method as well as a consumer option. Transactions increased by 8 times to 229,3 million transactions per month by February 2021, representi

57、ng R$169,5 billion, and the number of users more than doubled to 116,6 million users.Transactions using pix per type of Payer/Receiver November 2020 vs. February 2021 (Billion R$; % growth)Source: Brazilian Central Bank (bcb)Impact on key stakeholdersConsumers will enjoy cheaper and faster operation

58、sThe immediate winners are individuals, as fees are cheaper and bank transfers are smoother, easier and faster. Errors and problems are barely reported, eliminating any lack of confidence that was initially expressed by users. Using pix for p2p transactions has been welcomed and is expected to keep

59、increasing in coming months.12BraziLBusinesses with c2b (consumer-to-business) transactions are also benefiting from pix. Even though costs to accept debit and credit cards have declined 30% in the last 11 years, according to the Brazilian Association of Credit Card and Services Companies (abecs), r

60、enting or purchasing pos machines andpaying interchange fees to card players are among some of the most important costs for small merchants. As well as reducing direct costs, companies have a better cash flow because they receive transactions with pix instantly.B2b transactions have a lower use of d