Across Latin America, developments in payment technology have shown immense potential for revolutionizing the travel market: a sector that represents a substantial percentage of the region’s total GDP.
These projections are closely related to the rise of the mobile channel and developments in payment technology. Roughly 40% of Latin Americans now book their travel on mobile devices.
“More than 85 million new smartphones have been put in use in Latin America since 2016, and smartphone adoption rate is projected to exceed 71% by 2020, ahead of the global average of 66%” (Phocus Wire
As made evident by the recent market report
, global mobile wallet platforms in the region expand far beyond big names like Apple Pay and Google Pay. Therefore, it is crucial for travel merchants in the region to support the local AFPs that have local popularity depending on the specific countries in which they operate.
in Brazil, Cabal
in Argentina, and OXXO
in Mexico, travel merchants must balance popular regional AFPs with global digital wallets to stay ahead of consumer expectations.”
The growing percentage of Latin Americans booking travel on mobile devices showcases the necessity for airline and travel merchants to incorporate mobile channels as a central component to their payment strategy.