In an era of increasing digitization, digital payments are an important part of economic activity, business growth, and financial inclusion. Driving digital trade, digital payments shape how people spend and save, as well as impacting numerous other aspects of their daily interactions.
With the arrival of COVID-19, the value of digital payments for businesses became even more pronounced, particularly in Latin America and the Caribbean where digital payments quickly emerged as the preferred mode of purchase, with an 18% uptick in eCommerce across the region in 2020.
Digital payments have been shown to increase financial inclusion, with research illustrating that when the public has access to digital payments, they essentially serve as a gateway to other financial services such as insurance and credit, making it easier for people to start or expand businesses, manage risk, sustain financial shocks, and start saving for their future.
Digital payments also enable governments to easily and efficiently distribute resources to unbanked populations. In addition, micro, small and medium-sized businesses greatly benefit from digital payments, since they enable business owners to digitize their enterprises, creating opportunities to sell beyond geographical location with the ultimate benefit of enabling businesses to expand their customer base and boost profitability.
Across Latin America and the Caribbean, the number of cards in circulation rose from 800 million in 2007 to circa 1.8 billion in 2021. New payment methods like mobile payments, QR code payments, and real-time systems have also gained traction across the region, with the number of active mobile accounts increasing by a staggering 67% in 2020.
The Latin American market presents multiple new iGaming industry opportunities. Touted as the land of promise for iGaming, Latin American markets that have already started regulating sportsbooks and online casinos are seeing steady growth across the iGaming sector, with countries planning to impose favorable regulations in the near future anticipating astonishing levels of growth.
Throughout Latin America, the regulatory status of iGaming varies considerably. In countries like Brazil and Ecuador all forms of gambling are prohibited, with the exception of state lotteries. In other Latin American countries, although iGaming is not regulated at an official level, it is not expressly prohibited either.
In Nicaragua and Bolivia, the overall gambling industry regulatory framework legislates for iGaming, while in Argentina it is regulated on a province-by-province basis.
Brazil, Bolivia and Mexico are among several countries contemplating or actively reviewing reforms of their iGaming laws. Mexico and Brazil have proposed legislation that is currently under consideration. Meanwhile, Colombia has been updating its regulatory framework to better legislate for iGaming.
Supporting iGaming merchants across Latin America, the GumBallPay payment gateway enables iGaming websites to start taking payments from consumer credit cards quickly and painlessly, presenting the best credit card processing solution on the market today. With payment solutions supporting 180 countries around the world – facilitating payments via Visa, Mastercard, Diners, Discover, and all major payment providers – the GumBallPay payment solution seamlessly integrates with websites, enabling merchants in all industries, including iGaming websites, to start taking payments as quickly as possible.