036 037 VIEWPOINTS The technology is available, though: fintech companies very actively by platforms that facilitate commerce Innovating Payments mPOS, QR, and other terminal- connecting with promising startups, interactions. With Aeroméxico, the less acceptance infrastructure are securing partnerships with established biggest Mexican airline, we merged in Latin America attractive options. Most every phone players, and participating in the AI and conversational commerce on can become a point of sale, offering community with mentorships and Facebook Messenger to help travelers By Ruben Salazar Genovez a massive opportunity to serve sponsorships. Our largest interest is spontaneously book their next trip SVP, Head of Products & Solutions, Visa underserved niches across the entire to connect ideas from fintech with in a nontraditional user interface region. The aggregated value of execution at the banks. We are also for airlines. Travelers can chat in the adding one new merchant in Latin looking toward becoming a point Messenger app with Aeroméxico to In the coming years, there will be America is many times greater than the of reference between the regulatory get flight times and prices. They can value of adding one new cardholder. agencies, the banks, and the emerging even initiate ticket booking and buy an uptick in the adoption of mobile Latin America is heterogeneous fintech sector. directly within the app for themselves and digital payment options as in terms of the different operating At the Visa Innovation Center in Miami or others as they are interacting with models that exist due to regulation, and the Co-Creation Studio in São friends and colleagues. penetration reaches more consumers ownership structures, and processing Paulo, we focus on providing a creative Participating in the digital economy for and geographies. capabilities. One size doesn’t fit all, space and methodology for companies a region like Latin America will define and when it comes to gaining scale looking for new avenues of commerce other human development indexes, in innovative platforms, flexibility in and consumer experiences. Our potentially having a positive effect on adapting to market realities is key. engagement may span from defining the participation of more and more critical problems to providing partners individuals in the formal economy; In Latin American and Caribbean We have yet to see the rise of an payment options as penetration with prototypes they can leverage to alleviating poverty; expanding access countries, smartphone penetration has alternative digital payment system, reaches more consumers and A Small but Growing build the new generation of payments. to banking; and allowing commerce been much less than in other regions, such as Alipay in China, PaytM in India, geographies, particularly among the Fintech Community We’ve assisted the integration of will reach small and micro enterprises. but that is changing quickly. or M-Pesa in Kenya, operating outside millennial generation. Bradesco and ShopFácil with chatbot Our Innovation Centers in every region the four-party model. The fintech community is emerging become catalysts for new ideas that As with all markets and regions, each The biggest innovation challenge in strong but underinvested. Several help the banks, merchants, fintech operates in a unique and evolving a region with these dynamics is publications indicate investment companies, and governments shape payment ecosystem, and Latin Mobile Adoption driving acceptance across urban and below $600 million USD, from a global Fintech Investment the future of commerce and payments. America is no exception. Cash is Is Growing rural areas that are still dominated investment pool of $24 billion USD predominant in countries that have by small, local commerce. The (CB Insights Inc. Fintech Scan as of June a widely spread informal economy, payment ecosystems are still highly 2017). In many ways, Latin America is therefore only a small percentage of In 2016, 50% of mobile sales were dependent on wired infrastructure not receiving the right attention given consumer purchases—just 27% of made on smartphones, while small merchants; mom-and-pop shops its size and potential. In other regional transactions—are processed on credit e-commerce grew faster than face- and merchants operating in remote markets like Asia, there are already big and debit cards. Furthermore, an to-face transactions (Americas Market locations depend on wired terminals fintech companies that have set up a enormous amount of the population Intelligence. The State of Electronic to secure connectivity. This model serious, competitive environment. (almost 70%) is unaffiliated with a bank Payments). It is likely that in the becomes economically unsustainable $600million $24billion (Americas Market Intelligence. The coming years, there will be an uptick to reach long-tail merchants. In Latin America and Caribbean in the adoption of mobile and digital countries, Visa is starting to engage Local investment in Latin America Global investment in fintech State of Electronic Payments).