The days of receiving paychecks in the mail are over. The digital marketplace has altered the workforce and upended traditional payroll structures. With growing work flexibility, today’s employees, contractors, freelancers, creators, and influencers seek payout methods that meet their unique needs. And their value to payers has given them greater leverage in the marketplace.
Whether influencers or creators live halfway across the globe or freelancers reside in remote areas without access to banks, they want to get paid their way. Empowering payees on their terms can lead to greater business efficiencies and brand reputation.
Global changes require forward-thinking yet prudent solutions.
This is no subtle marketplace shift, as recently revealed by ABI Research – digital transactions are the future of many workers’ incomes. According to their recent study, the worldwide mobile wallet market will increase from a circulation of 3.5 billion in 2022 to over 5.6 billion in 2027. The post-pandemic economy has expedited this shift, and Latin America is the second fastest-growing market for e-commerce after the Asia-Pacific.
The more digital transactions become normalized, the greater the need for legitimate, reliable tech to support transactions.
South America is ripe for digital payment disruption.
As international demand for alternative payout methods grows, challenging compliance questions will follow, especially in volatile international spaces. Brazil has a notoriously complex banking system. Their increasingly archaic banking system has proven to be a fertile ground for innovation and fintech expansion. But to serve their exponentially growing market, tax compliance and product transparency are imperatives for businesses.
Without proper prudence and financial expertise among payment processors, payers and payees may find themselves vulnerable to extensive audits and/or regulatory hiccups that delay their transactions.
The dramatically shifting global financial system requires the fintech industry to stay ahead of the curve. As new economic opportunities arise, payors must do their diligence on who can handle payments compliantly, efficiently, and transparently – empowering both payor and payee in this exploding marketplace.