Ebanx is not new to the payment technology game in Latin America, having focused on cross-border e-commerce technology a few years ago to allow consumers in that region to buy from international retailers.

The fact that Brazilian fintech startups are fairly new to how fast they are changing their stripes to take advantage of the changing digital payments landscape is something that other payment processors and technology providers are doing in other countries as a regular part of the job. But Ebanx is making fast progress.

“In the past year, we have changed from what we used as an API cross-border payment system. We are now investing in other fronts. One thing is getting closer to the end user,” said Ariel Patschiki, End User Product Manager at Ebanx Pagamentos Ltd .

With this philosophy, Ebanx introduced Ebanx Go, a digital payments account available to Brazilian consumers to pay online or at a physical point of sale via a virtual card through an Android or iOS app or a physically connected Ebanx Visa card.

In recent years Latin America has become preferred payment market technology developers and other providers who see a sleeping giant. As such, Ebanx Go is entering a field where many Brazilians are still using cash or attempting to make digital payments through PayPal, the Boleto Bancario or MercadoPago government bond.

Ariel Patschiki, Director of End User Products at Ebanx Pagamentos Ltd.

Ariel Patschiki, Director of End User Products at Ebanx Pagamentos Ltd.

“Brazil is one of Latin America’s largest markets for global trade, and most players focus on ways to get to the market,” said Talie Baker, senior analyst at Aita Group. “The Brazilian market is especially attractive for digital payments because most people have access to the internet, even when they don’t have a bank account.”

Ebanx conducted a survey and cited US market intelligence, predicting that e-commerce would grow in double-digit numbers in Latin America, reaching $ 210 billion in transaction value by 2022, or double the current $ 101 billion.

Later, 52% of e-commerce transactions end with credit cards, although Latin America has a relatively small proportion of regional credit cards of 19%. In addition, 15% of e-commerce payments are made with cash vouchers but 13% with digital wallet, just over 12% with debit cards.

“Brazil is the focus on Mastercard and Visa real-time payment platforms Visa Direct and Mastercard Send, which facilitate foreign and cross-border payments,” Baker said, noting that about 25% of Brazil’s consumer population is. whether by debit or credit card.

Regulatory changes in Brazil increased competition in financial services so many players try to enter that door, mainly focusing on underserved consumers, easy-to-use mobile products, in which Ebanx sees great potential for its digital account platform.

“Ebanx Go was developed to address the problems of retailers and address the huge underinsured population because we already have 55 million people to buy with Ebanx,” Patschiki said. “We are not looking to replace traditional banks in Brazil, but are looking to help ways people can shop.”

Consumers in Brazil can use the Boleto Bancario cash voucher system to deposit money into an Ebanx Go digital account. This type of transfer enables them to fully utilize their digital account or accompanying card in terms of payment and earnings, refund, track transactions and receive instant confirmation, as well as take advantage of other Ebanx services.

The Ebanx Go digital account is still being tested with 10,000 Brazilian consumers through 18 participating merchants, including AliExpress, Gearbest and Spotify; and the company plans a full nationwide launch in the second half of the year. Further expansion is targeting other Latin American countries, Mexico and possibly parts of the United States.

There is no charge for opening, depositing, maintaining or transferring money to an Ebanx Go digital account. The purchase is done through various digital partners who deliver 5% refund to the consumer. Customers can apply rewards for future purchases or transfer money to other accounts.

“This is good for our main customers, who are dealers who are partners with us, in terms of withdrawing money,” Patschiki added. “It allows the Brazilians our payment instrument in the palm of your hand and it’s a very simple and easy way to buy.”

Ebanx Go also gives place to the digital payments landscape, which has become crowded over time in Brazil and Latin America.

“There is currently some progress in the number of players entering the market,” said Aite’s Baker. “So it’s going to be a bit of a waiting game to see which one will stay.”

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