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A2A growth is changing how people consume online

Thursday, September 26, 2024 — 12:10:49 (EDT)

CURITIBA, BRAZIL, and NAPA VALLEY, U.S., September 26, 2024 – The growth of new payment methods has indicated significant changes in digital commerce worldwide. For João Del Valle, CEO and Co-founder of EBANX, a global technology company specializing in payment services, the popularity of real-time payments like Pix in Brazil, UPI in India, PSE in Colombia, and mobile money in Kenya signifies a cultural shift in the digital payments market.

"A2A [account to account] transactions growth is changing the way people consume online across the globe," says Del Valle in the lead-up at the EBANX Payments Summit 2024 in Napa Valley, California. The event started in Barcelona, in Spain, on the 18th and will continue in the U.S. from September 30th to October 2nd, with keynote presentations by Stripe, Nubank, Banorte, and National Payments Corporation of India (NPCI), besides EBANX. The Payments Summit 2024 will also include chapters in Bangkok, Thailand, and São Paulo, Brazil.

The CEO of EBANX, who will discuss the future of the digital payments market at the event in Napa Valley, highlights three trends in the digital economy that global companies need to pay attention to. Aside from the cultural shift driven by the popularity of A2A transactions, he points out the transformation of payments into digital channels due to consumer behavior and the rise of innovative services that combine credit and debit cards with alternative payment methods (APMs).

Still regarding A2A transactions, Del Valle shares that, in Brazil, the fintech's merchants saw a 16% increase in revenue after integrating Pix solution with EBANX, and a 25% increase in their client base. According to data from Payments and Commerce Market Intelligence (PCMI), by 2025, 44% of digital commerce volume in Brazil will be paid with Pix, surpassing credit cards' volume, which will account for a 41% share. "The popularity of Pix is a sign of the future of APMs across the globe," states the CEO of EBANX.

In Colombia, PSE already dominates digital commerce, with a 31% share of all volume transacted online in the country, per PCMI. "And it's not only about offering more options. It is also about bringing people in," says Del Valle. He reveals PSE brought more than half of all new customers for two online retail companies that process payments with EBANX over a three-year period.

Another success story is mobile money in Kenya, which accounts for 48% of all digital commerce in the country. "A mobile-native method, for a mobile-savvy population. At EBANX, this is the first choice of payment method for all merchants starting in Kenya," adds the CEO of the global fintech. The A2A transactions, the executive comments, are playing an important role in digital inclusion worldwide.

Customer behavior changing digital commerce

In India, the growth of UPI since it launched in 2016 has sparked a revolution, transforming the former cash-based economy into a digital payments powerhouse, with 55% share of digital commerce, per PCMI, and the potential for 80% penetration, according to India's Ministry of Information and Broadcasting.

In another cash-based country, Egypt, consumer habits are transforming the payments market – and the digital economy. There, 64% of the volume in digital commerce is paid with cash, cash-based vouchers or QR code, available for both banked and unbanked consumers. "They are literally digitizing cash, making the global digital economy available for everyone - including the majority of the population who does not have access to financial accounts or cards," explains the CEO of EBANX.

Hybrid payment methods

Del Valle also talks about the balance between cards and APMs across rising markets when it comes to digital commerce, and how they complement each other – both where cards prevail, and where APMs are kings. Another change pointed out by Del Valle is the innovative combination of APMs and cards into hybrid payment methods in emerging markets.

In Tanzania, he adds, mobile money is enabling card payments in digital commerce, with M-Pesa partnering with Visa for a virtual card. Meanwhile, in India, credit cards are seamlessly integrated with UPI, enabling credit card payments through the instant payments app, in a well–known UX and flow. A report from PwC published last August indicated that the number of credit cards in the country is expected to double by 2029.

According to the CEO of EBANX, the focus of the EBANX Payments Summit is to demonstrate how companies can achieve global growth in digital commerce by adding rising markets into their global expansion plans, and navigating the complexities and nuances of local payments. "Local payments are no longer exotic: they are mainstream for the global growth of global companies," says Del Valle.

ABOUT EBANX

EBANX is the leading payment platform connecting global companies with customers from one of the fastest-growing digital markets in the world. The company was founded in 2012 in Brazil with the mission of giving people access to buy in international digital commerce. With powerful proprietary technology and infrastructure, combined with in-depth knowledge of the markets where it operates, EBANX enables global businesses to connect with hundreds of payment methods in different countries in Latin America, Africa, and Asia. EBANX goes beyond payments, increasing sales, and fostering seamless purchase experiences for businesses and clients.

For more information:

Website: www.ebanx.com/en/

LinkedIn: www.linkedin.com/company/ebanx

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information: bankcardlife.com?orid=33533&opid=1 .

Source: Company press release.