Why a Card-Only Checkout Loses Customers in Latin America
Horacio Raviolo from dLocal and Vlademir Santos of ACI Worldwide discuss the detrimental impact of card-only checkout systems on customer retention in Latin America. They argue that reliance on cards alienates a significant portion of the market that prefers alternative payment methods.
As digital payment preferences evolve, many Latin American consumers are favoring e-wallets and other local payment options over traditional credit cards. This trend highlights a potential gap in global merchants' understanding of regional payment behaviors, risking the loss of substantial customer bases if adaptations are not made accordingly.
Key takeaways
- ▸Card-first strategies may cost global merchants significant customer loss in Latin America.
- ▸Local payment methods, including e-wallets, are gaining consumer preference over traditional cards.
- ▸Understanding regional payment behaviors is crucial for global merchant success in Latin American markets.
Why this matters
Merchants that fail to adapt to local payment preferences risk losing customers to competitors who offer more flexible payment options. As consumer habits shift towards digital wallets and alternative methods, embracing a diverse payment strategy becomes essential for market penetration in Latin America, influencing revenue and customer loyalty.