The Latin American region continues to be increasingly alluring one for igaming expansion.
When growing into the myriad of markets that are in Latin America however, it’s vital that operators are equipped with the most impactful tools to maximise engagement amongst a new audience.
As part of the latest SBC Digital Day, Kamran Hedjri, Founder and Group CEO of PXP Financial, and Constanza MuñozTorres, Chief Legal Officer at ProntoPaga, emphasised the importance of education and bringing local knowledge to the table upon entry.
This is underlined by the fragmentation of Latin America, with it being crucial to understanding each framework.
Muñoz said: “Any operator that wants to join any Latin American market or any specific country should study the rules and should keep in mind the anti-money laundering rules that govern the country and also the consumer protection legislation that applies.
“The second really important point for any operator that wants to enter the Latin American market, it’s to keep in mind that Latin America is huge, and it has many, many different currencies.
“The third [piece of advice] I would give to an operator is to keep in mind that you have to build consumer trust. The reality in the different countries could be very different and therefore you have to know the local situation and you have to build a consumer trust keeping in mind the reality of the country.”
As well as globally recognised payment methods such as PayPal, Google Wallet and Apple Pay, consumers in Latin America also utilise many different local payment options. By far the most popular is Brazil’s Pix, which currently has built up more than 200 million registered users in just a few years of activity.
Muñoz explained how the rise of payment systems like Pix has helped to improve the speed and costs of payments. She cited the example of when Estelarbet launched in Chile, it would take up to 72 working hours for players to receive the money they withdrew from the operator.
That time has been reduced to seven minutes, and withdrawals are sometimes even available instantly.
Speaking specifically on the impact of Pix in Brazil, Hedjri added: “What Pix has done is manage financial inclusion. It has got all the wallets connected to it and you can use your phone or you can use multiple ways of accessing the system, and that is more inclusive.
“You don’t necessarily have to have a bank account in order to do it. It’s created an opportunity for financial inclusion. If I’m not mistaken, for the consumers the transfer is fast so the cost is very efficient. And also integration into the ecosystem has been done in a good way.”
