EBANX, a global fintech that provides payment solutions in Latin America, has announced a partnership with MACH, the largest digital bank in Chile. Global companies and international websites will now be able to offer MACH’s digital wallet as an additional payment option to its customers in the country, expanding their total addressable market with one single integration.
With that, EBANX now integrates with six digital wallets as a payment method in Latin America, being one of the pioneers in this payment solution for international e-commerce.
“We are very happy to offer MACH Pay as one more important payment option in Chile, the most digitized market in Latin America and where e-commerce is expected to grow by 23% in 2021. Digital payment methods are booming throughout the region, and this partnership between MACH and EBANX will surely expand access to global products and services and allow global companies to reach new customers in Chile,” says Juliana Etcheverry, director of Expansion LatAm and Strategic Partnerships at EBANX.
Created as a spinoff of Banco Bci, MACH is a digital bank that offers a prepaid, free digital account. It allows customers to pay for physical or digital purchases through their smartphones, working as a digital wallet. MACH Pay is MACH’s payment solution, which allows customers to pay in physical and digital stores using their MACH accounts.
“This partnership with EBANX will help us move forward in our path to improve our customers’ financial life, giving them, among others, safe, fast, and simple payment methods to ease their daily needs. MACH Pay is a clear example of it, and our customers will now have the chance to experience this solution in many international merchants through EBANX,” says Ignacio Larrain, CEO at MACH.
Digital payments momentum
After gaining traction during the pandemic, digital payments are now rapidly growing in Latin America. In Chile alone, digital wallets, for instance, grew by 32% in 2020 and represented USD 400 million in online purchases during the year, according to Beyond Borders, EBANX’s annual study on e-commerce in LatAm.
Digital wallets allow customers to pay for purchases through their smartphones, usually offering multiple payment options (such as cash, debit cards, domestic credit cards, bank transfer, and installments) with just one click and almost instant confirmation. Due to their flexibility and convenience, they are one of the most used payment methods in the region.
In Latin America overall, digital wallets represent around 11% of the e-commerce market, amounting to approximately USD 20 billion in transactions, according to data from consultancy firm AMI (Americas Market Intelligence). Brazil, for instance, is already the world’s fourth-largest market for mobile wallets, and 61% of smartphone users have at least one of them.