With a growing number of service providers active in the digital environment, payouts have become an important mechanism for doing business in Brazil
If Brazilians had already been consuming digital products and media, the pandemic accelerated this process even more, consolidating the country as one of the great highlights in the consumption of media and goods in the digital environment. Today, there are more than 150 million users of social networks, with forecasts of reaching 184 million in 5 years, in addition to a 90% of smartphone penetration in 2020.
And it doesn’t stop there: the country still has more than 80 million gamers, forming a market of more than US$ 2 billion, and is already the second-largest Twitch location in the world. Within the economic field, it is worth mentioning the more than 400,000 shared housing hosts, 50,000 teachers and tutors working online, 1.5 million service providers on online platforms, and 3 million app drivers. Clearly, this is a highly connected country, with a population that actively seeks entertainment, business, and relationships through digital means and needs a solution to ensure safe and practical payouts for all these professionals.
In this dynamic and highly digital landscape, where digital services are being consumed through apps with delivery agents, freelance services, ride-hailing drivers, home rental hosts, and many others, the way to pay those payees have also needed to evolve, keeping up with the new economic scenarios. The payout process or disbursement is gaining prominence, demanding a disruptive and innovative solution to providing payments for Brazilian service providers.
A growing world
According to the recent Whitepaper Brazilian E-commerce and Payouts in 2021: A deep dive into Brazil’s e-commerce and payout landscape an industry report commissioned by BoaCompra and conducted in partnership with Americas Market Intelligence (AMI) it is estimated that twelve million Brazilians are recipients of payouts, totalling US$18 billion in payments made in 2020, of which 60% were cross border payouts, representing 29% of the total. The forecast is that local disbursements in Brazil will grow 25% per year until 2024 while cross border payouts will grow 29%, reflecting especially the trends of young people, both for the entertainment and professional side.
This scenario clearly demonstrates the importance of payment solutions for companies abroad that are interested in doing business in Brazil, selling services and products and making payments to local providers. Traditional cross-border payout processes methods were not developed with the hyper-connected and digital dynamics of the present socio-economic scenario in mind, especially considering the post-pandemic trends. Specifically, traditional cross-border payout brings little visibility into bank fees and taxes, leave recipients vulnerable to currency fluctuation, and make it difficult for payers to provide assistance to their service providers.
By comparison, by relying on a payout solution that provides clarity about costs involved and makes payments in local currency, a company can improve its relationship with payees and offer a better customer experience. In addition, the best solutions should be free of bank fees, perform transactions practically instantaneously, and bring more clarity to the entire transaction flow in order to make it easier to manage.
The moment, therefore, is attractive for international vendors, with an expanding buying public and a large supply of specialized professionals ready to support companies from all sectors to generate excellent business. BoaCompra’s Payout, for example, is a solution that provides instant payment in local currency, helping with receipts speed and the organization of supplier payment. The values are presented in reais, facilitating the visibility in local currency, besides being free of banking taxes and international bank fees. This solution allows the conversion into a PagBank account for the receiver, which allows more control of the business and increases financial inclusion.
To maximize the opportunities generated, it is essential to count on a solution that allows you to act in a clear, controlled, and predictable way, making payments quickly in local currency and ensuring maximum visibility over your finances. Talk to BoaCompra experts and understand how our payout can benefit your business.