Fintech

EBANX Launches a Range of Payment Products to Improve LatAm B2B SaaS/Cloud Market

EBANX, the LatAm and Africa-focused paytech, has launched a series of new products – from mega payments, to micropayments, and to single transactions for retail marketplaces. In addition to this, it has also announced a new automated payments solution to ease and speed high-value transactions in LatAm’s $11billion B2B SaaS/Cloud market.

EBANX launches its new high-value-ticket automated payments product

Despite the hyper growth of SaaS and cloud adoption in Latin America, the ability to process high-value B2B transactions quickly, affordably, through the automated checkout process and with flexible payment options was very difficult.

To address this challenge, EBANX has announced the launch of its new high-value-ticket automated payments offering for global and regional companies seeking to sell cloud, ERP, IT services, or SaaS subscriptions across Latin America. The launch was made at the sixth edition of EBANX‘s annual Latin America Summit, being held in Mexico City for the first time this week.

The new solution, which enables automated checkout purchases from $10,000 onwards, is designed to handle large tickets with an average of hundreds of thousands of dollars, fully compliant with regulations and assuring all necessary controls to prevent any financial losses.

The first market that EBANX launched in is Brazil, up to specific regulatory limits and controls of EBANX‘s partner financial institution, and soon it will reach other LatAm countries where EBANX already operates. Brazil is LatAm’s biggest economy, where organizations are expected to invest $2.9billion in data projects by the end of this year, per a joint ABES/IDC research study released in June. The country is the tenth largest IT software, equipment and services market in the world.

The market for these lucrative SaaS/Cloud services in LatAm are estimated to be worth USD$11 billion by the end of 2022, based on an EBANX analysis of recent data from research firms IDC and Netscribes. IDC analysts have forecast a 20-35 per cent increase in cloud use in most Latin American countries over the next several years. On a global scale, the public cloud IaaS and PaaS market will reach a value of USD$400 billion worldwide by 2025, with a 28.8 per cent CAGR between now and then, according to a recent global study by IDC.

“Before rolling out our new automated payments solution for B2B software and services companies, we studied the sector carefully to identify cloud and SaaS vendors’ pain points and how to solve them,” said Paula Bellizia, president of global payments at EBANX. “Latin America has a fast-growing SaaS market, pacing at 27 per cent per year through 2026, according to Netscribes. The B2B market represents 56 per cent of the total volume, while average contract value is estimated at $45 thousand per year.

“Meanwhile, at least half of Cloud B2B purchases in LatAm are paid manually, through bank transfers – many of them in foreign currency. The most common option has been using a SWIFT bank-wire transfer, which can take up to five business days with costly transfer fees. We speed up and automatise the transfers, and provide full reconciliation,” Bellizia completed.

The EBANX High Ticket solution is the first of its kind in the latino market. Cloud and SaaS vendors benefit from automated, fast payments processes (almost real-time) and a better user experience – and importantly, all transactions are done in full compliance of regulatory requirements from EBANX‘s partner financial institutions and with enterprise-grade security that helps monitor and prevent fraud.

Plus, EBANX accommodates a broad variety of alternative payment methods used in Latin America, from different currencies, such as digital wallets, voucher payments, domestic credit cards, recurring payments, or one-time payments for the total value of purchase.

“The B2B software and services merchants that tried the new solution during the initial phase saw a facilitated operation, an automated processing from the checkout, a reduction in timeframes and an increase of cost-efficiency,” said Erika Daguani, VP of product at EBANX. “We have automated a process that is really hard to automate with our advanced, proprietary technology that provides higher levels of service and payment performance at a more affordable price.”

EBANX unveils three innovations to address three different burgeoning LatAm market opportunities

As e-commerce expands at hyper-growth rates in emerging markets such as Africa and Latin America, global merchants now have new and better ways of processing more types of online transactions. From the sixth edition of its annual Latin America Summit, EBANX unveiled three innovations to address three different burgeoning market opportunities: the ability to process high-value transactions for the $11billion B2B SaaS/Cloud sector in LatAm – starting in Brazil: micropayments to power the continued growth of the $100billion plus global creator economy, and a new single-transaction feature that lets online shoppers buy products from local and global sellers with just one final click within digital retail marketplaces.

“The creator economy is booming in Latin America, which has some of the world’s greatest appetites for social media,” said Ariel Patschiki, chief product officer at EBANX. “During recent years, there’s been a trend of brands preferring to work with micro-influencers who have fewer numbers of followers on social media but reach more niche audience interests. This phenomenon has generated an increasing need to provide smaller micropayments for these everyday social media influencers who have emerged in much bigger numbers since the pandemic to help brands sell products on social channels. This is what we’re empowering.”

The increase in creator subscription options since 2020 has created a recurring payments challenge for small-ticket values. The new micropayments capabilities from EBANX are addressing all these issues weighing down the creator economy which is expected to reach a value of roughly $16billion in LatAm in 2022.

On the flip side, EBANX’s ability to process mega payments – from $10,000 onwards per transaction, up to specific regulatory limits and controls of EBANX‘s partner financial institution  – is now available in Brazil, Latin America’s largest economy, to ease and speed processing of payments for global and regional companies seeking to sell cloud, ERP, IT services, or SaaS subscriptions. B2B software and service merchants can now receive one-time or recurring payments for high-ticket-value transactions using the fintech’s automated, speedy and trusted platform.

The market for these lucrative SaaS/cloud services in LatAm are estimated to be worth $11billion by the end of 2022, based on an EBANX analysis of recent data from research firms IDC and Netscribes. IDC analysts have forecast a 20-35 per cent increase in cloud use in most Latin American countries over the next several years. On a global scale, the public cloud IaaS and PaaS market will reach a value of $400billion worldwide by 2025, with a 28.8 per cent CAGR between now and then, according to a recent global study by IDC.

Finally, to address a huge challenge for online retail merchants and their shoppers, EBANX now offers a single-transaction feature that lets consumers buy various products from local and international sellers within online marketplaces and make one single payment instead of having to make different transactions. EBANX processes the payments out to each seller on the backend, but the shopper’s experience is now streamlined and easier.

“Our new single-transaction feature for retail marketplaces addresses a huge pain point for the increasing number of online merchants who offer a mix of local and international products to shoppers in the countries EBANX operates in,” said Erika Daguani, VP of product at EBANX. “Prior to this, consumers who purchased products from several different countries would need to make several different payments. Now, they can enjoy a unified experience.”

In both Africa, where EBANX announced it is expanding to, to South Africa, Kenya and Nigeria, and Latin America, where it operates across 15 counties, the online retail segment is expanding at a rapid pace. After record acceleration, online retail is expected to grow by 40 per cent in Latin America and consolidate as the largest vertical for the region’s digital commerce sector this year, according to EBANX’s Beyond Borders 2021-2022 research study update last fall. In Africa’s leading economies, revenues for online sales of groceries and personal care products is forecast for steady growth through 2025. Fashion and electronics products are the two highest sales volumes via online shoppers in African countries, with fashion product sales predicted to reach $13.4billion and electronics products sales to reach $11.2billion in annual revenues in about three years, according to the International Trade Association.

Author

  • Francis is a journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

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