Consumers around the world are reconsidering how they do everything from paying bills to meeting their job responsibilities in the wake of the global health crisis, as remote and virtual interactions have become the norm for many workers.
Many people are also considering participating in the gig and sharing economy as they seek more flexible forms of income, a trend that is particularly growing in regions such as Latin America, where much of the population also has access to digital and mobile payment tools. . For example, a report found that 83% of consumers in Latin America would be willing to use contactless payments to make purchases. The growing popularity of these payment methods could also influence the number of consumers who want to receive their salary or other payments.
In the last Digitization of Payments in Latin America Playbook, PYMNTS examines how gig and sharing economies are taking shape in Latin America. It also takes a closer look at how participation in these platforms could influence the payment preferences and needs of consumers in the region.
Around the Latin American payments ecosystem
Growing interest in the gig economy and other forms of flexible, remote work is also leading lawmakers in Latin America to take a closer look at these workers and the protections they enjoy. Mexican legislators are considering granting new protections to digital platform workers under its federal labor law, for example, that would include drivers, delivery service workers, couriers and other freelancers. Such a change would mean that these workers would benefit from the same labor protections as full-time employees nationwide, indicating that lawmakers expect freelancers and full-time employees to increase their use of digital platforms to meet their job responsibilities at home. the future.
Sharing economy platforms are also poised to add new features to keep their customers engaged as more consumers around the world become familiar with on-demand work opportunities. Ride-sharing company Uber recently announcement setting up an Explore tab that will allow its users to book restaurant reservations or book tickets for live events, for example – a new feature aimed at boosting customer engagement. The tab will also offer consumers the ability to book rides to those reservations, keeping the experience within the app. Uber is gearing it towards improving engagement and loyalty, and the feature is currently available to consumers in Mexico and the United States.
For more on these and other stories, visit Playbook News & Trends.
Cabify: Why Latin American concert platforms need to make room for digital payments
The gig and sharing economies have continued to see massive growth in recent years, especially in regions like Latin America, where many consumers also have quick access to online banking and payment tools. The expanding gig economy in this region also means that gig platforms need to take steps to keep the attention and loyalty of potential attendees, explained Ruth Sosa, product manager, finance for ridesharing in America. Latin. Cabify. This includes providing a fast and convenient checkout experience for both attendees and customers.
To learn more about why Latin American gig and sharing platforms need to take steps to support more flexible digital payments, check out the Playbook story.
How the rise of the on-demand economy is influencing the payment needs of Latin American consumers
Consumers have changed the way they buy, pay and even work since the start of the global health crisis. Workers around the world are looking for more flexible career opportunities, increasing work participation or sharing savings as freelance positions become more attractive to these individuals. These jobs may prove particularly attractive to consumers who remain underbanked or unbanked and therefore rely on cash to pay bills or make other payments. A recent study found that 140 million Latin Americans, or about 59% of the region’s population, work informally, relying on cash income. Working within the gig economy can enable these workers to receive funds through sharing entities’ mobile platforms without the need for bank accounts, bringing them deeper into the region’s developing digital payment ecosystem.
To learn more about how the booming gig economy may influence the payment preferences of Latin American consumers, check out Playbook’s Deep Dive.
About the playbook
the Digitization of Payments in Latin America Playbookproduced in collaboration with Kushkiexamines the latest developments in digital payments in Latin America, including how payment service providers can meet consumer demands and gain a foothold in the region.