What are a few of the important challenges for e-commerce and e-payments in Colombia currently?
PayU’s vision is to create a world without financial borders where everyone can prosper. Our role as a leading global voice on this topic is to help people, business, and stakeholders in between to make the link between access to financial services and increased prosperity. Colombia is a key market for PayU and we truly believe that our investment in financial education will bring more business opportunities to our customers and citizens in general.
One factor in increasing access to financial services is doing a better job of expanding digital access. According to our own research, by 2025 three out of four Latin Americans will have at least one mobile service line. But for now, in 2021, our challenge is to reach those new users and to understand their needs, their dynamic and built their confidence in the security that online payments and digital financial products in general.
Experiences that connect financial solutions with convenience and lower costs will have a high chance of acceptance and success, but unfortunately in our country high costs and the impact in families’ economy is still a problem to be solved. By helping to lower costs and expand access, I truly believe that fintechs are playing an important role in the overall development of Latin America.
Where do you see opportunities for Colombian e-commerce and e-payments looking ahead?
One of the biggest opportunity for e-commerce in Colombia is related to the recent opening up of the payment systems landscape. This allows users to access to different payments services providers, which will improve accessibility with the participation of new market actors.
Additionally, there is discussion of opening up payment acquiring to credit institutions and companies based outside of Colombia. This too will increase competition in the payment ecosystem which will help to lower costs and benefit final consumers as well.
The macroeconomic outlook continues to be uncertain, but this contributed to Colombian buyers increasingly opening to the benefits of digital financial services, and to online consumption in general. In the last 3 years alone the LatAm region as a whole has doubled its ecommerce revenues. On this subject we see a good opportunity to further improve mobile payments capability via our mPOS tool, which will improve our offering for small entrepreneurs and merchants.
A key aspect in the overall growth of e-commerce all across Latin America has been the security and trust that brands and payment gateways have been able to generate. In the past, the main demotivating factor about online shopping in our region was the fear of suffering an identity theft from having to enter credit card credentials. That’s why at PayU we are always working with AI and machine learning on our anti-fraud module which is recognized for being an in-house development that allows us to constantly evaluate our processing monitoring rules to keep electronic fraud levels even lower than in other payment gateways.