Payments orchestration platform Spreedly says it’s seeing a lot of activity from users in Latin America.
The company announced Tuesday, January 11, that transaction volume on its platform from that region had grown by more than 100 percent year over year.
“As one of the world’s fastest-growing eCommerce markets, there is a strong demand for ways to more easily scale payments across the region,” Spreedly said in a news release. “In a recent report published by Americas Market Intelligence (AMI), growth rates for Latin America from 2020 to 2024 are estimated to be between 20 to over 40 percent.”
Companies are turning to payments orchestration to capitalize on this growth and enter Latin American markets more quickly. Spreedly says it can help address those needs, due to its experience helping companies like delivery platform Rappi and rideshare service Cabify meet their payment goals.
“In the payments space, every region operates in their own way,” said Carlos Ayalde, global head of payments at Rappi. “This means that as we rapidly expand and grow, the processes, tools and services we use in one country often cannot be used in the next and we would have been forced to invest a lot of time and resources in building and maintaining new integrations.”
Spreedly also points to its 2021 partnership with Visa to expand the adoption of network tokenization through Spreedly’s Payments Orchestration service in Latin America.
PYMNTS spoke to Speedly Head of Product Randy Guard late last year about the importance of tokenization in his industry.
Guard predicted that by the end of 2022 we’ll see the ongoing emergency of evergreen tokens that can be used to update accounts and are compatible with any payment service provider (PSP). This can boost authorization rates by several percentage points and is particularly important for subscription businesses.