What Are The Best Ways to Process Payments in LatAm? An Overview of Available APMs and Methods

Expanding into Latin America? How you handle payments will make or break your growth. 

The region is booming, with millions of new consumers coming online every year, but the payment landscape is nothing like Europe or the US. If you rely on the processors you use at home, you can expect payment declines, frozen funds, and frustrated customers.

LatAm buyers use a mix of instant bank transfers, cash vouchers, local cards, and digital wallets, and the methods vary widely by country. Skip them, and you risk lost revenue and risk failed transactions.

For industries with stricter regulatory requirements, the stakes are even higher. Global processors often block your vertical, and even if they don’t, approval rates can tank without local acquirers and alternative payment rails.

In this guide, we’ll show you the best ways to process payments in LatAm, break down what works in each market, and give practical advice based on our experience connecting companies to the right payment providers across the region.

Quick Snapshot of the LatAm’s Payment Methods

Before you start processing payments in LatAm, it’s important to understand how the region works. Every country here has its own preferred payment methods, regulatory requirements, and consumer behaviors, reflecting the region’s economic diversity and unique financial habits.

Credit and Debit Cards

Credit cards continue to be a leading payment method in Latin America with a 48% market share in 2023, though this share is declining as newer payment options gain ground.

Consumers are increasingly turning to local payment rails, instant transfers, and digital wallets, especially in markets where trust in banks is uneven or access to credit is limited. 

Businesses that rely solely on cards risk missing significant revenue opportunities.

Pix

Brazil stands out for Pix, the instant payment rail that has transformed payments in the country. Handling tens of billions of transactions per year, Pix is now a dominant method both online and offline. 

From peer-to-peer transfers, Pix’s instant, mobile-first nature makes it critical for businesses targeting Brazilian consumers.

Cash-Based Voucher Systems and Convenience-Store Payments

In Mexico and parts of Central America, cash-based vouchers and convenience-store pay points remain essential. OXXO is the classic example, enabling millions of unbanked consumers to pay for online purchases in cash at local stores. 

Skipping these options can mean losing a substantial share of potential buyers, especially in markets with lower bank penetration.

Digital Wallets

Digital wallets are growing rapidly across the region, offering high conversion rates in areas where trust in traditional banks is uneven. Popular options include Mercado Pago, Nequi, Daviplata, and Ualá, each with strong adoption in their home markets. 

Wallets provide mobile-friendly, secure, and convenient payments that can help businesses increase approval rates and reduce abandoned checkouts.

Best Ways to Process Payments in LatAm

Now that we have a good understanding of the region’s payment landscape, it’s time to get practical and into the details. As you can see, different countries, different consumer habits, and unique local methods mean that there’s no one-size-fits-all solution.

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So, to succeed here, you need to offer the payment methods customers actually use, all while optimizing for approval rates, compliance, and ease of reconciliation.

Below, we break down the best ways to process payments in LatAm, highlighting what works, where, and why it matters. 

Instant Account-to-Account Rails (PIX, SPEI equivalents)

Instant account-to-account payment rails are systems that allow real-time transfers directly between bank accounts, bypassing cards or wallets. These rails are designed to settle payments instantly, making them a critical part of both online and offline commerce.

Where it matters:

• Brazil: Pix has become ubiquitous, processing over 90 billion transactions annually across eCommerce, retail, P2P transfers, and bill payments. It’s now used by consumers of all ages and income levels, making it almost unavoidable for businesses targeting Brazilian customers.
  
  
• Mexico: SPEI equivalents dominate for digital transactions, particularly for eCommerce, recurring payments, and peer-to-peer transfers. Adoption continues to grow as more consumers embrace digital banking.

Why it matters:

• Instant settlement: Funds move in real time, reducing cash flow friction for merchants. This is especially important for verticals where chargeback risk or declined transactions can significantly impact revenue.
  
  
• Low friction for customers: No need for credit cards, bank-issued wallets, or third-party apps. Customers can pay directly from their accounts, which reduces checkout abandonment.
  
  
• High adoption and trust: In Brazil, Pix handles tens of billions of transactions annually. Its instant, mobile-first nature means customers are comfortable using it for almost any purchase.
  
  
• Versatile use cases: Works for B2C, B2B, one-time payments, recurring billing, and even in-store payments through QR codes or POS integration.

Bank Slips and Cash Vouchers (boleto, OXXO, convenience store payment)

Bank slips and cash vouchers are pre-generated payment instruments that allow consumers to pay for goods and services in cash at banks, convenience stores, or authorized retail points. 

These methods bridge the gap for consumers without credit cards or bank accounts, enabling online purchases and bill payments with cash.

Where it matters:

• Brazil: Boleto remains a staple for both eCommerce and B2B transactions, with millions of transactions processed monthly. It’s especially popular among consumers who don’t have cards or prefer not to use them online.
  
  
• Mexico and parts of Central America: OXXO pay points cover over 18,000 stores nationwide, providing cash access for unbanked consumers to pay online purchases, utility bills, and services.
  
  
• Other LatAm countries: Similar convenience-store and cash-voucher systems exist in markets with lower banking penetration, making them essential for reaching broad consumer segments.

Why it matters:

• Access to unbanked populations: Millions of consumers in LatAm rely on cash for everyday transactions. Skipping these methods means leaving revenue on the table.
  
  
• Trusted by local consumers: Cash-based payments are familiar, lowering hesitation and increasing conversion rates.
  
  
• Offline-to-online bridge: Enables digital commerce in markets where credit card penetration is limited.

Cards (local and international)

Credit and debit cards remain a core payment method in LatAm, including international schemes like Visa, Mastercard, and American Express, as well as local networks.

Cards can be used for online purchases, subscriptions, and in-store payments, and they continue to represent a significant portion of total transactions despite the growth of alternative methods.

Where it matters:

• Brazil, Argentina, Chile, and Colombia: Cards are still the largest single payment method for eCommerce and retail.
  
  
• Local card networks are critical for authorization and approval rates, particularly in Brazil and Argentina where domestic schemes dominate in certain segments.
  
  
• International cards remain important for cross-border sales, particularly for tourists or expatriates purchasing online.

Why it matters:

• Broad acceptance: Consumers are familiar with cards and often prefer them for higher-value purchases.
  
  
• Supports recurring payments: Ideal for subscriptions or ongoing services.
  
  
• Local networks improve approvals: International-only processors may see higher declines.
  
  
• Consumer trust: Cards are widely trusted, reducing friction and abandonment at checkout.

Payment Orchestration Platforms (PayFirmly)

Payment Orchestration Platforms are solutions that connect multiple payment providers, local rails, wallets, and card networks through a single integration. They act as a central hub for processing, routing, and managing transactions, allowing businesses to accept payments across multiple countries without building separate integrations for each local provider. 

Platforms like PayFirmly provide real-time routing, fraud management, and reconciliation tools.

Where it matters:

• Across LatAm: Supports local methods such as Pix (Brazil), Boleto (Brazil), OXXO (Mexico), PSE (Colombia), CoDi (Mexico), and popular digital wallets.
  
  
• Industries with stricter regulations: Gaming, supplements, crypto, and other verticals often face declines or restrictions from global processors – POPs provide alternative routing to maintain revenue.
  
  
• Ideal for businesses entering multiple countries, managing multi-currency transactions, or needing consolidated reporting.

Why it matters:

• Higher approval rates: Intelligent routing directs transactions through the best-performing provider or acquirer per country, method, and risk profile.
  
  
• Simplified operations: One integration covers multiple local and international methods, reducing setup and maintenance time.
  
  
• Multi-currency settlement: Handles FX conversion and payouts efficiently, crucial for cross-border businesses.
  
  
• Fraud and risk management: Built-in tools monitor transactions and reduce chargebacks, critical for merchants in regulated or industries with stricter regulations.
  
• Streamlined reconciliation: Central dashboard tracks payments, refunds, and chargebacks across multiple PSPs and countries.

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LatAm Digital Wallets and Superapps (Mercado Pago, Nequi, Daviplata, Ualá)

Digital wallets and superapps are mobile-based payment platforms that allow consumers to store funds, pay merchants, transfer money peer-to-peer, and often access additional financial services like loans or rewards. 

They provide a fast, mobile-first payment experience that has become essential in markets where bank trust or credit access is limited.

Where it matters:

• Brazil, Argentina, Colombia: Widespread adoption in urban and younger demographics.
  
  
• Particularly impactful in markets where credit card penetration is low or consumer trust in banks is uneven.
  
  
• Effective for both online and in-store payments, including QR code-based transactions and eCommerce checkouts.

Why it matters:

• High conversion rates: Mobile wallets often outperform cards or bank transfers in checkout completion.
  
  
• Secure and convenient: Consumers can pay quickly without sharing card data, reducing friction.
  
  
• Adoption among unbanked populations: Digital wallets open access to consumers who lack traditional bank accounts. Many providers also enable cash top-ups at convenience stores or agent locations, making them usable even for semi-banked customers.
  
  
• Recurring and micropayments: Well-suited for subscription services, small-ticket purchases, and peer-to-peer transfers.
  
  
• Builds trust: Consumers often perceive wallets and superapps as safer than unknown online merchants or international card processors.

Local Bank Transfers (PSE and equivalents)

Local bank transfers are direct online payments from a customer’s bank account to a merchant’s account, typically initiated via the bank’s website or mobile app. These transfers allow consumers to pay securely without credit or debit cards, often in real time or near-instantly.

Where it matters:

• Colombia: PSE is widely used for eCommerce, bill payments, and B2B transactions.
  
  
• Mexico: CoDi facilitates instant mobile bank transfers for both retail and online payments.
  
  
• Costa Rica and Central America: SINPE Móvil and equivalents are popular for peer-to-peer and merchant payments.
  
  
• Particularly relevant in countries with strong local banking infrastructure and high consumer trust in banks.

Why it matters:

• Trusted by consumers: Bank transfers are familiar and perceived as secure.
  
  
• Instant or near-instant settlement: Improves cash flow and reduces delays in order fulfillment.
  
  
• High success rates: Low decline rates make them ideal for both B2C and B2B payments.
  
  
• Supports industries with stricter regulations: Since payment is directly from the customer’s bank, there’s less risk of fraud and chargebacks compared to cards.
  
  

Versatile use cases: Suitable for one-time payments, recurring subscriptions, and cross-border transactions when routed via a local acquirer or orchestration platform.

Use local acquirers or orchestration, guide customers through transfers, and rely on them to reduce declines.

Quick Comparison Table: APMs and Methods at a Glance

Now that we’ve explored each payment method in detail, we’ve created this table to give you a clear, at-a-glance overview of the main options in LatAm.

Costs, Fraud, and Approval Rates: The Realities of LatAm Payments

Expanding into LatAm means offering the right payment methods, and managing the financial and operational realities that come with them. 

Costs, fraud risk, and approval rates vary dramatically across countries, payment types, and verticals. Ignoring these factors can directly affect your bottom line.

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Costs

• FX fees: Global processors often settle in USD or EUR, adding 3–5% in conversion costs for local currencies like BRL, MXN, COP, or ARS.
  
  
• Operational overhead: Reconciling multiple payment methods, currencies, and local acquirers can be time-consuming and error-prone.
  
  
• Payment method fees: Local cards, instant transfers, or wallets may carry different fees than international cards; knowing which to prioritize can improve margins.

Fraud & Risk

• Industries with stricter regulations  –  gaming, crypto, adult, supplements  –  face extra scrutiny.
  
  
• Chargebacks, rejected transactions, and frozen funds are more likely if you rely solely on global processors.
  
  
• Local acquirers and payment orchestration platforms (POP) can help detect and prevent fraud while ensuring compliance with AML and KYC requirements.

Approval Rates

• Decline rates for international cards can spike 20–30% higher in some LatAm markets.
  
  
• Local payment rails and wallets typically have higher approval rates.
  
  
• Routing transactions through a POP or local acquirer ensures smoother processing, reduces declines, and maintains revenue flow.

To succeed in LatAm, you need a holistic payment strategy: local rails, wallets, cards, and orchestration platforms. 

Many merchants rely on this setup because the right providers can lower costs, improve fraud prevention, and increase approval rates, helping businesses capture revenue that often goes unrealized.

What Happens If You Don’t Adapt Your Payment Setup for LatAm

Expanding into Latin America without adapting your payment setup is a mistake that can cost you revenue, approval rates, and even market access. 

Here’s what can happen if you don’t adjust:

Local Payment Rails Dominate

As you’ve seen, LatAm consumers rely heavily on country-specific payment methods like instant bank rails, cash vouchers, and local bank transfers. Ignoring this reality can:

• Slash conversion rates by double digits
  
  
• Cause customers to abandon checkout if their preferred method isn’t available
  
  
• Limit your reach in key markets where digital wallets or cash payments dominate
  
  
• Reduce trust among consumers who prefer familiar local methods

Local Acquiring Is Critical

Many global PSPs route LatAm transactions through offshore banks, which can create multiple operational issues. Without local acquiring, your business may face:

• Higher decline rates – up to 20–30% more for some card BINs
  
  
• Delayed settlements – funds can take days longer to reach your accounts
  
  
• Reduced approval rates and cash flow disruptions

Compliance and Trust Issues

Each LatAm country has unique regulatory requirements. Failing to adapt can result in:

• Payment rejections or holds by global processors
  
  
• Difficulty meeting AML, KYC, and reporting requirements
  
  
• Operational friction when reconciling payments or responding to disputes
  
  
• Damage to brand credibility if customers sense non-compliant or unreliable payment options

Settlement, Reconciliation, and FX Friction

Relying solely on global processors can lead to financial inefficiencies:

• FX costs – converting USD or EUR into local currencies can add 3–5% fees
  
  
• Complex reconciliation – tracking multiple payment methods across countries increases errors
  
  
• Limited reporting – real-time dashboards, webhooks, and chargeback management may be constrained
  
  
• Slower cash flow – especially impactful for industries with stricter regulations needing reliable funds

Bottom line: Not adapting your payment setup in LatAm can cost revenue, customer trust, and market opportunity. 

Practical Implementation Guide: What You Should Do Next

Expanding into LatAm payments can feel complex, but breaking it into phases makes it manageable. Here’s a roadmap for businesses to get set up efficiently and maximize revenue.

Phase 1: Market Prioritization and Data

Start by identifying which LatAm countries make the most sense for your business. Look at local payment preferences, adoption rates, and regulatory requirements, and gather data on customer behavior and transaction volumes to guide your approach.

Phase 2: Core Integrations

Connect with local acquirers and payment orchestration platforms like PayFirmly to enable multiple payment rails. Integrate essential payment methods – cards, bank transfers, instant rails, digital wallets, and cash vouchers.

Phase 3: Optimize Conversions and Risk

Use real-time approval and fraud data to fine-tune payment routing. Offer local-preferred methods at checkout to maximize conversions and monitor  transactions to reduce declines.

Phase 4: Reconciliation and Payouts

Implement efficient reporting across currencies and methods. Track FX costs, settlement times, and transaction flows to avoid bottlenecks, and leverage orchestration platforms to consolidate payouts and simplify accounting.

Phase 5: Continuous Monitoring

Regularly review approval rates, declines, and abandoned transactions. Adjust routing, payment methods, and fraud rules as markets evolve, and maintain a proactive approach to compliance and PSP relationships.

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Quick Checklist Before You Go Live in LatAm

Before accepting payments in Latin America, make sure you’ve covered these essentials:

Your Next Steps for Succeeding with LatAm Payments

Expanding into Latin America offers huge growth potential, but only if your payment setup aligns with local expectations. 

Every choice – from country-specific payment rails and digital wallets to local  acquiring and orchestration platforms – directly affects revenue, approval rates, and compliance.

Industries with stricter regulations face even greater stakes, making it essential to adopt a structured, local-first approach. By connecting companies to payment providers specialized in LatAm, FirmEU enables better revenue capture and fewer payment hurdles in a region where many global-first merchants face challenges.

Contact us today to see how we can help you set up payments the right way and start capturing revenue from Latin America.

Expand Your Payments in LatAm with Ease

LatAm’s payment landscape is complex. We connect businesses with providers that can support higher approvals and more reliable revenue in the region.

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