Digital payments enabler platform Bamboo Payment Systems has partnered with inDrive to improve payment solutions in Latin America. Through the partnership, Bamboo Payment will support inDrive’s local Latin America communities via streamlined instant payment services in Argentina, Peru, and Chile.

Currently, Bamboo Payments operates in 11 Latin American countries, and with its instant payment platform, businesses can access the markets via a secure payment ecosystem. According to ride-sharing service inDrive’s officials, the collaboration will ensure secure transactions throughout Latin America, therefore improving their impact on the region by making digital payments more accessible and ensuring secure transactions while maintaining low operational costs. Moreover, the partnership consolidates both companies’ B2B and B2C markets by offering PAYIN and PAYOUT solutions for customers and merchants.

Back in July 2023, inDrive partnered with Unlimit to support its expansion in new markets. The transportation platform will leverage Unlimit’s proprietary payment infrastructure, gaining the ability to process payments in local currencies and through alternative payment methods. Payment methods in Latin America The digital penetration rate and the number of mobile users in Latin America have been expanding steadily throughout the past years.

The unbanked population has also decreased as new businesses enter the market and provide inclusive payment solutions. The World Bank estimates that approximately 55% of the adult Latin American population has a bank account at a financial institution. However, cash payments are still the preferred method in the region, with 85% of transactions being cash-based. Financial inclusion still represents an issue, as individuals in some regions do not have easy access to credit cards to enable them to make online purchases. Countries across Latin America have their own local set of bank cards, therefore ecommerce companies that want to enter the market need to offer various credit and debit card options.

For example, companies that want to operate in Chile need to offer Magna and CMR, while the ones in Argentina need to enable the use of Cabal and Naranja. As the majority of the young population tends to use mobile phones for purchasing online and onsite, bank transfers and instant payment are increasing in popularity. Instant payments in the region Banks and fintechs are focusing on delivering new instant payment systems in the region while developing business models that are sustainable and regulatory compliant. Besides the national instant payment ecosystem of Brazil, Pix, other payment solutions have come in Latin America, such as SPEI launched by the Bank of Mexico, Transfers 3.0 in Argentina, QR BCB in Bolivia, Transfer365 in El Salvador, and Sinpe in Costa Rica. Moreover, Chile’s central bank has been working towards implementing instant payment systems, creating low-value clearinghouses that have already been approved at a legislative level.

In Peru, the Central Reserve Bank has directed interoperability between the country’s most used digital wallets, Yape and Plin, while also working on including banks, fintechs, and other financial institutions into a general interoperability system. .