Nuvei has partnered with Americas Market Intelligence (AMI) to produce a report providing insights into the connections and synergies between Asia Pacific and Latin America.
Latin America is a top market for international merchants looking for expansion opportunities. Asia is the region from which cross-border merchants in Latin America are coming the fastest: It is estimated
to increase e-commerce volume in the region by more than 30 per cent annually through 2016.
Nuvei’s new report collates interviews with more than 40 industry stakeholders across the region, accompanied by deep desk research and original analysis.
According to the paytech firm, which offers more than 570 different payment methods and local acquiring in nearly 50 markets, Latin America and Asia have deep commercial ties that help sustain the world economy.
Trade between the two regions has grown significantly, at nine per cent annually since 1995, driven by China’s growth in manufacturing and Latin America’s production of natural resources.
Among the products imported by Latin America from China are electronics and machinery, chemicals and plastics, and textiles and footwear, while the main exports include minerals, agriculture and meat, seafood, processed food, and beverages.
Latin America is particularly well-suited for Asian companies looking for new growth markets for several structural and cultural reasons, such as experience navigating digital transformation, high levels of fragmentation, high smartphone adoption and availability of payment models that enable easy offshore operations.
The Nuvei perspective
The commercial relationships between the Asian and Latin American markets bring relevant results to the global economy and for decades have been responsible for supplying raw materials to Asia and industrialised products to Latin America.
More recently, e-commerce has been a source of commercial ties between the regions, with APAC companies succeeding at selling to the more than 300 million Latin American eCommerce shoppers.
Despite its recent e-commerce revolution, Latin America still requires development to remove some of the present inefficiencies. Challenges remain, including elevated fraud rates, low authorisation rates, difficulties
related to subscriptions, shopping cart abandonment, fees related to international transactions and foreign exchange, lack of access to credit, etc.
Download Nuvei’s report here.
Image and article originally from thefintechtimes.com. Read the original article here.