Connect with us

Featured

The Digital Payments Segment Grew 29% in Colombia in the First Half of 2021

The digital payments sector in Colombia registered a growth of 29% in the first half of the year. The president of Colombia Fintech, Erick Rincón, assures that the gateways are regulated by Circular 008 of 2018 of the Financial Superintendency, where it dictates the security requirements for their operation and that in the last year and a half they have grown exuberantly, like the industry.

Published

on

Payment gateways are digital platforms that enable merchants to receive online transactions securely. Driven by the pandemic, this system became the only option to obtain goods and services in 2020 and today.

In Colombia, these payment bridges increased their transactions by 64% in 2020, and a growth of 29% in the first half of 2021 compared to the same period of the previous year, according to data provided by the Colombian Chamber of Electronic Commerce. All this is linked to the process of bankarization with an offer of financial services through means of payment with open accounts. There are also other types of services, such as loans on online platforms that can be produced without the need for the traditional banking system and thus with this convenience begin to attract new customers.

With the technological adaptation that companies and microenterprises around the world are developing, digital loans are increasingly present.

Find more about the fintech sector in Colombia and read the latest business headlines with our companion app Born2Invest.

Within the industry there are nine subcategories that are divided into different types of services:

Payment methods and electronic channels: Payment platforms, electronic commerce and international transfers.

Infrastructure for financial institutions: Customer control and profiling, fraud prevention, identity verification, business intelligence, cybersecurity.

Digital credits: Companies that offer credits in electronic platforms.

Financial solutions for companies: Software for billing accounting.

Personal finance and wealth management: Personal finance management, financial education, automated advisors and financial planning.

Trading and markets: Crowdfunding, and crypto assets.

Blockchain: Intermediaries and digital asset markets.

SEE ALSO  4 interior design marketing strategies to build brand exposure

Following data provided by the analytics and prevention company Riskified, Latin America is one of the regions where cyber fraud is on the rise: on average: 8% of transactions are canceled due to suspicions of fraud, which is double the European average. For a payment gateway to be reliable, it must have PCI DSS certification, a regulation that accredits the security standard of the main card issuers.

The president of Colombia Fintech, Erick Rincón, assures that the gateways are regulated by Circular 008 of 2018 of the Financial Superintendency, where it dictates the security requirements for their operation and that in the last year and a half they have grown exuberantly, like the industry. The boom they present is still not enough, as there are still challenges to meet: “A tax withholding regime that generates a cost for businesses that impacts cash flow, the 4 per 1000 tax and informality, among others. It is estimated that in Colombia there are about 140 gateways”, he concluded.

On the other hand, Openpay is one of the e-commerce players in Latin America with more than 5 years of processing payments in Mexico virtually, the payment gateway subsidiary of BBVA Group started in Colombia in 2020 with solutions for transactions in online stores, subscription payments, marketplaces, crowdfunding and also online loan payments, among others.

The entity that also developed its Wopi gateway was Bancolombia, which it has taken to Central American countries, places where it has more presence and support. On the other hand, in the market, there are also names such as Pago Seguros, PlacetoPay and Tu Pago, and other entities that perform the same services.

SEE ALSO  3 essential tips for startups before starting a crowdfunding campaign

__

(Featured image by JoshuaWoroniecki via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in ENTER.CO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.