EBANX, a fintech unicorn firm specialised in funds for Latin America, started its growth all through Central America, launching operations in Costa Rica and going reside in El Salvador, Panama, Guatemala, and the Dominican Republic by the primary half of 2021. The corporate can be rising its attain in South America, by including operations in Paraguay.
“We’re very excited to begin our growth in Central America, a area that’s rising rapidly when it comes to e-commerce and digitisation, and which has an amazing unknown potential for world firms,” says André Boaventura, associate and CMO at EBANX. “The arrival of EBANX within the area is not going to solely enable these firms to increase their addressable market, however can even have a constructive affect by increasing this inhabitants’s entry to digital services and products.”
On the identical time, the launch of EBANX’s operations in Paraguay strengthens the corporate’s presence in South America, the place it already reaches a market of over 500 million folks. “Increasingly more, EBANX helps world firms to grab Latin America’s full potential,” provides Boaventura.
Central America within the highlight
EBANX began to supply its payments solutions exterior Brazil, its residence nation, again in 2015, with the launch of operations in Mexico and Peru. Colombia, Chile, Argentina, Ecuador, Bolivia and Uruguay got here inside the following years. With the growth all through Central America, the corporate provides an approximate $12billion e-commerce market to its operations.
Costa Rica, the primary EBANX’s market in Central America, has led the area’s e-commerce over the previous few years. The nation has over 80% of web penetration, and a excessive stage of instructional attainment and monetary inclusion. Roughly 70% of its inhabitants is banked, and 27% are on-line shoppers, which makes Costa Rica a go-to market within the area.
Panama is one other excessive spot within the area: it has the best GDP per capita in Central America and considered one of its largest e-commerce markets, of round $700million (according to Visa). Nevertheless, solely 10% of the inhabitants has ever made an internet buy, as said by a World Bank report.
El Salvador additionally has quite a lot of room to develop on the subject of e-commerce: 72% of the population has access to the internet via smartphones, however solely 6% of the adults make on-line purchases. Salvadoran shoppers are extremely receptive to worldwide manufacturers, as a consequence of its dollarised economic system and the proximity with the US – which represents an amazing alternative for world firms that wish to be first comers to this market.
The Dominican Republic is one other market with excessive proximity to the US: roughly 70% of its shopper items are from the North American nation. The nation is the biggest economic system within the Caribbean area, and has a rising digital commerce market: roughly 75% of the inhabitants makes use of the web, however only 12% make online purchases.
Lastly, Guatemala, probably the most populous nation in Central America, has been seeing a fast progress in e-commerce, regardless of its market nonetheless in early phases: solely 7.6% of its inhabitants makes on-line purchases, as said by the World Bank. New generations (that signify the overwhelming majority of the inhabitants, whose median age is 19 years previous, in line with the UN) are embracing know-how and shifting away from conventional retail, whereas entry to monetary providers is gaining traction.
Paraguay, a brand new marketplace for world enterprises
The beginning of EBANX’s operation in Paraguay isn’t much less important. On this South American nation, 93% of on-line shoppers began to order on-line within the final 4 years, as reported by the Paraguayan Chamber of Electronic Commerce – which makes Paraguay a model new marketplace for world firms. Over 90% of on-line transactions are cross-border, and most of them are performed via cellphones, owned by practically 97% of the inhabitants..
EBANX’s launch in Paraguay will increase its presence in South America, and consolidates the fintech firm as a pacesetter in fee options within the area.