Everything you need to know about Cabal

E-commerce continues to be a major bright spot in the Latin American economy, creating opportunities for local and international merchants alike.

But in order to reach online customers in Latin America, businesses outside the region must be able to offer local customers a shopping and checkout experience that feels comfortable, safe, and familiar.

As many global merchants know, one of the most important elements of localizing the e-commerce experience is the choice of payment methods provided to customers at checkout. For businesses operating in Latin America, this means offering the right combination of alternative payment methods (such as Rapipago and Pago Fácil in Argentina, or Efecty in Colombia) – but also optimizing the selection of card payment methods with locally-branded credit and debit card options.

One of the most popular local card payment options in Latin America is Cabal, a local debit and credit card used primarily in Argentina but also in Brazil, Cuba, Paraguay, and Uruguay. Keep reading to learn why it’s a must-have payment method for any online merchant wishing to do business in LatAm.

What is Cabal?

Cabal is a local credit and debit card payment method based in Argentina. Consumers can use the Cabal card for making online purchases primarily in Argentina but also in Brazil, Uruguay and Paraguay. Cabal functions as a cooperative where its members – typically banks, smaller cooperatives, and mutuals – can issue a range of credit, debit, prepaid and virtual cards to their customers.

How does Cabal work?

To make a purchase using the Cabal card, customers use Cabal as they would for any card payment. Once at checkout, they can select the credit card payment method. Next, customers need to enter their Cabal card number, the expiration date, and the cardholder’s name as it appears on the card. Finally, they need to enter the security number located on the back of their card as part of the standard payment procedure.

Once the payment is authorized, the merchant receives funds immediately and can proceed with fulfilling the order.

Why do merchants and consumers use Cabal?

Cabal is an important payment method for e-commerce businesses looking to expand their operations to Latin America. Consumers can use the card at more than 3 million locations across Argentina, Brazil, Cuba, Paraguay, and Uruguay. The card reaches a potential e-commerce population of almost 300 million people located in these countries, which are characterized by high internet penetration and the growing popularity of e-commerce. 

As a growing number of Latin American consumers make purchases online, the ability to provide a localized checkout experience is essential. Implementing Cabal as one of many available payment method options is a smart move for e-commerce businesses who wish to win over local customers in Latin America.

How can merchants start accepting Cabal?

The easiest and most straightforward way for merchants to offer Cabal and other local credit and debit cards in Latin America is to work with a payment gateway that has the necessary local acquiring relationships in place to accept local payment methods in Latin American markets.

With PayU, merchants can offer Cabal along with hundreds of other local, global, and alternative payment methods at checkout, all via one integrated global payment platform.

See how the PayU Hub can support your e-commerce growth by offering a single, global solution for accepting and optimizing online payments anywhere in the world.