A regional pioneer in the use of mobile telecommunication, Chile is the leader in Latin America when it comes to internet access. Data from the “El Crecimiento de Redes Sociales en América Latina” study held by ComScore shows, that Chile is one of the countries that have the largest Facebook penetration in the region, reaching 90% of the Chilean internet users.
“A staggering 71% of those online users in Chile do not have access to international credit cards to make purchases online, as Chileans primarily use local cards and cash-based payment methods”, said Fernando Estevez Vazquez, Payments Director at UOL BoaCompra.
“Additionally, Chile’s internet penetration rate is markedly higher than its neighboring countries (more than 72% of Chileans have access to the internet and 80% of these consumers prefer to go online via their computers), demonstrating high demand for digital products and further growth in e-commerce with a good network and affordable prices. However, it is largely untapped by the giants of the gaming industry that do not offer local payment options.”
As we can see, the Chilean market favors the purchase of digital products, showing huge growth perspectives.
BoaCompra as an option for cross-border sales
BoaCompra offers digital-payment solutions in nine countries like Argentina, Colombia, Peru, and Chile. More than 140 local payment methods are already available for a potential audience of over 350 million people.
When we see the cross-border market, it is possible to observe the tremendous growth on this sector. Companies are starting to look at ways to offer their services globally. However, there are several challenges in this practice, such as the access to local financial players and understanding the customers’ culture in each country.
Established in Brazil in 2004, but focused on emerging markets, BoaCompra is a natural option for companies that want to increase their sales and conquer new LATAM markets, like Chile. More than 300 international merchants rely on BoaCompra, including Valve, EA, CipSoft and Elex.
Profiting from cross-border sales to Chile
Chile shows one of the best scenarios in Latin America, with a financial and political stability similar to some European countries.
Besides partnering with gaming companies, BoaCompra also offers cross-border payment solutions for businesses that offer digital services, such as cloud computing, antivirus and SaaS.
In the Chilean territory, BoaCompra offers 32 payment methods in the local currency, such as American Express, Webpay, Mastercard, Redcompra, and Visa, as well as online bank transfers through local partnerships. On top of that, BoaCompra’s payments portfolio also includes its virtual e-wallet, Go4gold, and cash-based payments through more than 25 thousand Multicaja-licensed stores all around Chile.
Transactions without fraud
How about the risks of operating in Latin American countries? If your concern is fraudulent transactions, BoaCompra ensures safe transactions and full protection to international merchants.
If a company generates USD 100 thousand in revenue, then it will receive USD 100 thousand, guaranteed. BoaCompra is compliant with the laws of each country where it operates. This way we make sure that our merchants integrate the main digital payment solutions in their online checkout, as well as the assurance that their international sales are compliant with local regulations.
Prospects of growth in Chile
With a young population hungry for new technologies and a strong economy, Chile is one of the main e-commerce in Latin America.
Even in large Chilean cities, online consumers who live far from physical bank branches can benefit from the new cash-based payment solutions, such as Multicaja.
Emerging markets, expanding markets
Latin America is more than ever on the radar of international companies: a young population that is well receptive to new technology and internet services.
Several international players already see the region as their next business expansion, precisely because there is still much room for growth ahead, especially regarding digital products. At BoaCompra, we consider that every country has its own challenges and opportunities, regardless of its size or market maturity.