Invoices Made Easy, Payments Made Simpler! – Zintego.com

Latin America (LATAM) is an economic region that represents a unique blend of challenges and opportunities for global businesses, especially in the e-commerce and payment processing sectors. As businesses look to expand into Latin American markets, understanding local payment behaviors is crucial to navigating the complexities of the region. The financial landscape in LATAM differs significantly from the traditional developed markets, mainly because of the underbanked population and diverse payment preferences. For instance, a staggering 40% of online purchases in Argentina are made via cash, while only 27% of Brazilian consumers own a credit card. In Mexico, 37% of the population lacks access to a bank account (McKinsey). These statistics highlight the necessity for payment solutions that cater to alternative payment methods in LATAM.

In this ever-evolving environment, companies expanding into Latin America need to adopt payment solutions that consider these local preferences, enabling seamless cross-border transactions. Two major players in this space—dLocal and EBANX—offer comprehensive solutions for merchants wishing to operate in Latin American markets. Both platforms support an array of payment methods and services, but each has its advantages and limitations that businesses need to evaluate carefully.

This article will examine the nuances of Latin American payment systems and compare two key payment processors—dLocal and EBANX—to help you decide which platform suits your business needs.

Overview of dLocal

Local is an innovative payment platform based in Uruguay that helps businesses process payments and payouts in emerging markets, particularly in Latin America. Founded with the mission to bridge the gap between global businesses and consumers in regions with fragmented financial systems, dLocal has carved out a niche in LATAM by offering a wide range of payment methods that cater to the unique needs of local consumers.

The company’s focus is on simplifying cross-border transactions by supporting a variety of local and international payment options. These include local credit and debit cards, bank transfers, e-wallets, and even cash voucher payments. Additionally, dLocal offers a robust solution for processing both one-time and recurring payments, making it a versatile option for businesses of all types.

One of dLocal’s standout features is its ability to provide localized payment methods in more than 20 countries across the LATAM, APAC (Asia Pacific), and EMEA (Europe, Middle East, and Africa) regions. This broad geographical coverage allows businesses to reach markets that are often underserved by traditional payment solutions, further expanding their global reach.

Overview of EBANX

In contrast, EBANX is a Brazilian payment gateway that focuses on facilitating e-commerce transactions between global merchants and local consumers in Latin America. It was founded in Brazil, with the goal of providing a seamless link between international businesses and consumers in the region. While EBANX also supports various payment methods, it specializes in connecting foreign companies with Latin American buyers by offering a comprehensive set of localized services.

Unlike dLocal, which operates in a broader geographical scope, EBANX primarily focuses on Latin American markets, providing an in-depth understanding of the region’s financial systems. It offers businesses a wide variety of solutions, including payment processing, recurring billing, localization services, and customized consulting, which helps merchants navigate the nuances of operating in Latin America. With its expertise in LATAM payments, EBANX has become a key player for businesses targeting the region’s diverse consumer base.

Understanding the Importance of Local Payment Methods

One of the key factors that differentiate LATAM from other regions is the prominence of alternative payment methods. In many Latin American countries, credit card penetration remains low compared to developed markets, making it essential for businesses to offer a range of local payment options. These might include cash payments through convenience stores or voucher systems, which are especially common in markets like Argentina and Mexico.

For example, in Argentina, where cash payments dominate, platforms like dLocal allow consumers to make purchases through local payment methods such as OXXO and PagoFacil. Similarly, in Brazil, EBANX offers local payment methods that include boleto bancário, a popular bank payment option that allows users to make payments at convenience stores.

As a business looking to expand into LATAM, it is vital to understand the importance of providing consumers with payment options that suit their preferences. By offering a wide array of local payment methods, both dLocal and EBANX ensure that their merchant clients can engage effectively with a broad range of consumers across the region.

The Role of Cross-Border Payment Solutions

The rise of cross-border e-commerce has created new challenges and opportunities for businesses, particularly in regions like Latin America. As Latin American consumers become more accustomed to purchasing goods from international merchants, businesses are seeking payment solutions that allow them to process payments efficiently and securely, regardless of geographical barriers.

Cross-border payment processors like dLocal and EBANX play a vital role in enabling these transactions. They help businesses navigate the complexities of local regulations, currency exchanges, and payment methods, while offering fast and secure transaction processing. These platforms bridge the gap between global merchants and local consumers by providing the infrastructure needed for cross-border transactions to take place smoothly.

dLocal, for example, offers a simple platform that enables merchants to process payments from international customers in Latin America without needing multiple integrations for different countries. This allows businesses to expand into new markets more easily, without worrying about compliance with local regulations or managing separate payment processors for each country.

The Growing Role of Mobile Payments

As mobile phone penetration increases in Latin America, mobile payments are becoming an increasingly important method for consumers to make purchases. According to a study by GSMA, mobile internet penetration in LATAM is expected to rise significantly over the next few years, creating more opportunities for businesses to tap into this mobile-first market.

Both dLocal and EBANX are keenly aware of this trend, offering mobile-friendly solutions that allow consumers to make payments via their smartphones. By supporting mobile wallets like Apple Pay, Google Pay, and local mobile wallets, both platforms enable businesses to cater to the growing number of mobile-first consumers in Latin America.

Moreover, the rise of mobile payments in LATAM is particularly important for countries like Brazil and Mexico, where mobile phones are often the primary means of accessing the internet and making online payments. As mobile transactions continue to gain traction, businesses that integrate these payment methods will have a competitive edge in reaching a wider audience.

Cost and Pricing Models: A Key Consideration

When choosing a payment service provider, cost is always a critical factor for businesses to consider. Both dLocal and EBANX offer competitive pricing, but their pricing models differ, and businesses should assess which platform offers the most cost-effective solution based on their transaction volume, preferred payment methods, and target markets.

Local Pricing

Local’s pricing model is relatively simple but can vary significantly depending on the country and the payment method used. The company charges a fee that ranges from 2.7% to 7% per transaction, with the final percentage depending on factors such as the region, the type of payment method, and the volume of transactions. This all-inclusive pricing model includes transaction fees, processing fees, and currency conversion costs, which can be advantageous for businesses looking for an easy-to-understand pricing structure.

However, the broad range of pricing can be challenging for businesses, as it may not always be clear which pricing tier applies to a particular transaction. Merchants should take the time to understand the details of dLocal’s pricing model to ensure they are selecting the most affordable options for their specific needs.

EBANX Pricing

EBANX offers a more standardized pricing model, charging a flat rate of 2.7% per transaction, plus a fixed fee of 30¢ per transaction. This straightforward pricing structure can be beneficial for businesses that need predictable costs. However, EBANX also provides additional services like localization consulting and recurring billing support, which could impact the overall cost.

While EBANX’s flat pricing model may be simpler to manage, merchants should still consider the full range of services offered by the platform to determine if it aligns with their business goals. Additionally, EBANX does not offer a free trial version, so businesses will need to fully commit to the platform before fully understanding the cost structure.

The Merchant Experience: Which Is Better?

Both dLocal and EBANX offer customizable checkout experiences, enabling businesses to tailor their payment processing to suit their website’s design and brand. This flexibility is essential for creating a seamless shopping experience for customers, which in turn can increase conversion rates.

In terms of processing speed, dLocal has an advantage, with payments typically settled in one to two business days. This faster settlement time may be preferable for businesses that need quick access to their funds. However, EBANX processes payments in about three business days, which may be slightly slower but still within an acceptable range for most businesses.

Diving Deeper into dLocal and EBANX: Strengths, Weaknesses, and Key Differences

We introduced the concept of payment processing in Latin America and the importance of adapting to local payment preferences. We also provided an overview of two prominent payment platforms—dLocal and EBANX—which help businesses facilitate cross-border transactions and cater to the unique financial landscapes of Latin America.

Now,  we will delve deeper into the strengths and weaknesses of both dLocal and EBANX, comparing the features that make them unique and exploring their respective pros and cons. This analysis will help businesses make informed decisions when selecting a payment provider for their operations in Latin America.

dLocal: The Global Payment Platform with Local Expertise

dLocal has grown exponentially since its inception in 2016, becoming one of the most recognized names in cross-border payments for emerging markets. The platform’s ability to combine global reach with local expertise has made it particularly attractive to international businesses seeking to expand into Latin America and other developing markets.

Strengths of dLocal

1. Broad Geographical Coverage
   Local stands out for its extensive geographical footprint, supporting over 30 countries across Latin America, Asia Pacific, the Middle East, and Africa. This wide coverage allows businesses to access emerging markets in regions where many traditional payment providers are limited.
   
   Unlike EBANX, which focuses primarily on Latin America, dLocal has the advantage of catering to a wider range of markets outside the region. This makes it a compelling choice for businesses with an international customer base looking to process payments seamlessly across multiple regions.

2. Multiple Local Payment Methods
   One of the biggest advantages of dLocal is its support for a wide variety of local payment methods, making it easier for businesses to cater to customers with different payment preferences. In Latin America, this includes options like local credit and debit cards, boleto bancário (in Brazil), OXXO (in Mexico), and cash-based payments, as well as bank transfers, mobile wallets, and e-wallets.
   
   This diversity in payment options is crucial for businesses looking to expand into markets with low credit card penetration. By offering local payment methods, dLocal ensures a smoother and more efficient transaction process for local customers.

3. Robust Fraud Prevention and Security
   dLocal places a strong emphasis on security, offering built-in fraud protection and compliance with local regulations. The platform provides secure, encrypted payment processing, ensuring that customer data is protected during transactions.
   
   Additionally, dLocal’s fraud prevention mechanisms, such as machine learning-based systems that detect unusual payment patterns, are essential for mitigating the risks associated with cross-border payments. This level of security is particularly important when operating in regions where financial fraud can be more prevalent.

4. Fast Payment Settlements
   Local provides fast payment settlements, with funds typically available within 1–2 business days. For businesses operating in high-volume markets or with a need for cash flow flexibility, this can be an essential feature. This speed allows businesses to access their earnings quickly, which can be especially useful for industries with rapid turnover or those looking to reinvest their earnings immediately.

5. Simple and Transparent Pricing
   Local’s pricing model is transparent, with clear and competitive transaction fees that range from 2.7% to 7%. The platform offers all-inclusive pricing, which means businesses don’t have to worry about hidden fees for currency conversions, transaction charges, or other additional costs.
   
   This all-in-one pricing structure is particularly appealing to businesses that want simplicity in budgeting and cost management. However, businesses should consider their transaction volume, as pricing can vary depending on the region and payment method.

Weaknesses of the Local

1. Complexity in Pricing Tiers
   While dLocal offers competitive pricing, the different pricing tiers across various regions can be confusing for businesses. The percentage fee depends on factors such as the country, payment method, and transaction volume, which can make it harder to predict costs accurately without a detailed understanding of the platform’s pricing structure.

2. Limited Focus on Latin America
   Despite its extensive geographical reach, dLocal’s main strength lies in Latin America, particularly in terms of offering localized payment methods. However, the platform’s reach in the region, while wide, might not be as specialized in certain countries compared to platforms like EBANX, which focus on Latin American markets exclusively.

3. Lack of In-depth Customer Support
   One area where dLocal could improve is in customer service. While the platform offers support, some users report that response times can be slow, and the quality of service may vary depending on the issue. For businesses that rely heavily on timely customer support, this could be a significant drawback.

EBANX: The Latin American Expert

In contrast to dLocal, EBANX specializes in offering payment processing solutions for Latin American markets. Founded in Brazil, EBANX has become a key player in the region by providing tailored payment services that address the specific needs of Latin American consumers.

Strengths of EBANX

1. Expertise in Latin American Markets
   EBANX’s primary strength lies in its deep understanding of the Latin American market. The platform has tailored its solutions to cater specifically to the financial systems, payment behaviors, and regulatory environments of Latin American countries. This localized expertise makes EBANX an excellent choice for businesses that are focused on LATAM and need a partner with in-depth knowledge of the region.
   
   In addition to payment processing, EBANX offers businesses localization services, helping merchants adapt to the cultural and legal nuances of different countries in Latin America. For example, EBANX helps businesses comply with local taxes, currency regulations, and consumer protection laws in Brazil, Mexico, and other key LATAM markets.

2. Local Payment Methods
   EBANX offers a wide range of local payment methods across Latin America, including boleto bancário (in Brazil), OXXO (in Mexico), and a variety of local e-wallets and bank transfer options. This diversity in payment options ensures that businesses can serve customers in LATAM regardless of their payment preferences.
   
   Just like dLocal, EBANX recognizes the importance of providing local payment solutions to ensure a smooth payment process for consumers. The platform’s ability to facilitate cash payments is a major advantage in markets where credit card penetration is still low.

3. Strong Integration with Local Banks
   EBANX has established strong relationships with local banks and financial institutions, making it easier to process payments and settle funds quickly. This is especially advantageous in markets like Brazil, where payment processes can be slower than in more developed countries. EBANX’s strong connections with local banks help speed up settlement times and reduce payment processing delays.

4. Simple and Clear Pricing
   EBANX follows a simple and transparent pricing model, charging a flat fee of 2.7% per transaction plus a fixed fee per transaction. This straightforward structure makes it easy for businesses to predict costs and manage budgets, which is essential for companies with limited resources or smaller margins.
   
   The clarity in pricing is an important consideration for businesses looking for an easy-to-understand and predictable payment processing fee structure.

5. Integration with Multiple Platforms
   EBANX supports a wide range of integration options with popular e-commerce platforms, including Shopify, WooCommerce, and Magento. This ease of integration is a key advantage for businesses that want to add payment processing to their existing online store without the need for extensive development work.

Weaknesses of EBANX

1. Limited Geographic Reach
   While EBANX’s specialization in Latin America is a key strength, it also limits the platform’s reach compared to dLocal. EBANX’s services are primarily concentrated in Latin America, with a focus on Brazil, Mexico, and Argentina, and it does not have as broad a geographical footprint as dLocal.
   
   For businesses that want to expand into markets outside Latin America, EBANX may not be the ideal solution, as it does not offer payment processing in regions like Asia Pacific or the Middle East.

2. Slower Payment Settlements
   Compared to dLocal, EBANX’s payment settlements take longer. While it typically settles funds within 3 business days, this may be considered slow by businesses that need quicker access to their funds, especially those that rely on frequent cash flow management.

3. Fewer Global Payment Methods
   While EBANX offers a range of local payment methods in Latin America, it is not as well-equipped to handle global payment methods such as PayPal, credit card schemes, or mobile wallets outside the region. Businesses operating in both Latin America and global markets may find this limitation challenging when compared to dLocal, which offers broader international payment options.

Key Differences Between dLocal and EBANX

1. Geographic Focus: dLocal offers a broader geographic reach, covering not only Latin America but also regions like Asia Pacific and the Middle East, whereas EBANX is primarily focused on Latin America.

2. Pricing Models: dLocal’s pricing can range from 2.7% to 7% per transaction depending on the region and payment method, while EBANX offers a flat fee of 2.7% plus a fixed fee per transaction. Businesses should evaluate which pricing model best aligns with their needs.

3. Payment Options: Both platforms support local payment methods in Latin America, but dLocal also offers a wider range of global payment options, making it a better choice for businesses that want to reach customers outside of Latin America.

4. Settlement Speed: dLocal provides faster payment settlements, typically within 1-2 business days, compared to EBANX, which settles payments within 3 business days.

Integration and Usage of dLocal and EBANX: How Businesses Can Maximize Their Payment Solutions

Now, we will dive deeper into the practical side of these platforms, focusing on their integration with e-commerce platforms, the process of setting them up for your business, and how companies can leverage these services to maximize their payment processing experience.

For businesses that are eager to expand into Latin America or are already operating in the region, choosing the right payment processor and implementing it smoothly into their infrastructure is crucial. Whether you’re a small startup or a large enterprise, both dLocal and EBANX offer solutions that can integrate seamlessly into your workflow, allowing you to accept payments from local consumers and businesses in the region. We will discuss the integration process, key features of both platforms, and how businesses can optimize their use for growth and success.

1. Integration with E-Commerce Platforms

One of the most critical aspects of any payment solution is its ability to integrate smoothly with your existing business systems, especially if you already have an e-commerce platform in place. Both dLocal and EBANX recognize this need and offer various integration options to streamline the process.

Local Integration: Easing Cross-Border Payments

Local’s integration capabilities are designed for scalability and simplicity. The platform provides businesses with a powerful API (Application Programming Interface), which can be integrated directly into your e-commerce system. The API allows you to seamlessly accept payments in over 30 countries across Latin America, Asia, the Middle East, and Africa, offering a wide range of local payment methods. This versatility is important for businesses looking to expand globally.

For businesses using popular e-commerce platforms like Shopify, Magento, or WooCommerce, dLocal offers pre-built plugins and SDKs (Software Development Kits) to simplify the setup. These plugins allow businesses to quickly integrate dLocal into their store without requiring extensive coding or development knowledge. Once the plugin is installed, businesses can start accepting payments from customers in their preferred local payment methods, such as credit and debit cards, OXXO (Mexico), boleto bancário (Brazil), and more.

EBANX Integration: Simplifying Latin American Payments

EBANX also provides an easy integration process, especially for businesses targeting Latin American markets. The platform offers a simple-to-use API that supports a wide array of local payment methods in countries like Brazil, Mexico, Argentina, and Chile. This API allows businesses to integrate EBANX directly into their existing websites, shopping carts, and mobile apps. Similar to dLocal, EBANX offers SDKs and pre-built plugins for Shopify, Magento, WooCommerce, and other popular e-commerce solutions.

For businesses focused specifically on Latin American markets, EBANX’s specialized integration tools ensure that local payment methods such as boleto bancário, OXXO, cash-based payments, and local bank transfers are handled with ease. Additionally, EBANX supports multiple currencies, which is crucial for businesses dealing with various currencies across the region.

While both platforms provide API-based integration options, EBANX offers more tailored solutions for businesses solely targeting the Latin American region. This localized approach ensures that EBANX’s integration with e-commerce platforms is optimized for the nuances of the regional financial infrastructure.

2. Local Payment Methods: Key Advantages for Businesses

One of the most significant advantages of both dLocal and EBANX is their support for local payment methods. These local payment methods are often the key to ensuring successful transactions in emerging markets, particularly in Latin America, where a large portion of the population may not have access to traditional credit cards or prefer non-traditional payment methods.

dLocal’s Local Payment Methods

Local supports a diverse range of local payment options, including traditional credit and debit cards, alternative payment methods like boleto bancário (Brazil), OXXO (Mexico), Alipay (in certain markets), QR codes, mobile wallets, and even cash-based payments. This flexibility in payment options ensures that businesses can cater to local consumer preferences and expand their reach across different demographics.

For instance, in Brazil, where boleto bancário is a highly popular payment method, businesses using dLocal can accept payments via this method with ease. This feature can significantly boost conversions since boleto bancário is the preferred payment method for millions of Brazilians, especially in markets where credit card penetration is low.

In addition, dLocal’s ability to provide global payment methods alongside regional options is valuable for businesses that need to accept payments from international customers. This dual approach enables businesses to cater to local consumers while maintaining the flexibility to serve global markets.

EBANX’s Local Payment Methods

Similar to dLocal, EBANX supports a variety of local payment options across Latin America, but with a deeper emphasis on the specific payment methods popular in the region. Some of the prominent methods include:

• Boleto Bancário (Brazil)

• OXXO (Mexico)

• Spei (Mexico)

• Argentina’s Rapipago and Pago Fácil (Argentina)

• E-wallets such as PicPay (Brazil) and MercadoPago (Argentina)

For businesses targeting Latin America, EBANX’s extensive integration with these local payment methods provides an advantage over international payment processors that don’t specialize in the region. By providing consumers with their preferred payment options, EBANX helps improve payment success rates and customer satisfaction.

3. Currency Support and Conversion

Operating in Latin America or cross-border requires robust currency support. As businesses in these regions often deal with fluctuating exchange rates and diverse currencies, payment platforms must provide seamless currency conversion and transparent exchange rates.

dLocal’s Currency Conversion and Multi-Currency Support

dLocal excels in its multi-currency support, handling payments in more than 20 different currencies across various regions, including USD, BRL (Brazilian Real), MXN (Mexican Peso), ARS (Argentine Peso), and many others. This makes it easier for businesses to sell in multiple markets without having to deal with complex currency conversion issues. dLocal provides automated currency conversion at competitive rates, so businesses can focus on growing their international presence without worrying about fluctuating exchange rates or complex payments.

The platform also supports global payment methods, such as PayPal and Visa, alongside local Latin American payment methods. This feature is crucial for businesses aiming to tap into both local and international markets.

EBANX’s Currency Conversion and Multi-Currency Support

EBANX, similar to dLocal, supports multiple currencies, including BRL, MXN, and USD. However, its primary focus is on Latin America, meaning that its currency offerings are tailored to the region. EBANX handles exchange rates and provides businesses with automatic currency conversion between local currencies and USD.

For businesses only targeting the Latin American market, EBANX’s currency handling is typically sufficient. However, for those who are looking to accept payments from multiple international markets, dLocal’s broader currency support might be more appealing.

4. Security and Compliance

When it comes to payment processing, security and compliance are non-negotiable. Both dLocal and EBANX take compliance and security very seriously, offering a range of features designed to protect businesses and consumers from fraud and data breaches.

Local Security Features

Local’s platform is PCI DSS Level 1 compliant, which means it adheres to the highest security standards for handling payments. The platform also uses Tokenization, SSL encryption, and Machine Learning-based fraud prevention tools to monitor and protect transactions in real-time. These features help reduce the risk of fraud, ensuring secure payments for both businesses and their customers.

Moreover, dLocal’s compliance with local laws and regulations across different regions, including the General Data Protection Regulation (GDPR) for European customers, ensures that the platform meets the legal requirements of various markets.

EBANX Security Features

EBANX also adheres to high-security standards, being PCI DSS Level 1 certified. The platform offers encrypted transactions, fraud protection tools, and secure data storage to protect user information. EBANX’s strong local regulatory compliance across Latin America is one of its biggest advantages, especially for businesses that require expertise in the region’s complex legal landscape.

Additionally, EBANX works closely with local financial institutions and governments to ensure that its payment solutions comply with all relevant local regulations, ensuring that businesses are protected from legal issues related to payments and taxes.

5. Customer Support: A Key Consideration

For businesses, reliable customer support is essential, especially when it comes to payment processing. Both dLocal and EBANX offer customer support, but their offerings differ slightly.

Local Customer Support

Local provides 24/7 customer support through various channels, including email, live chat, and phone. The platform also offers a comprehensive knowledge base and developer support resources to assist businesses during integration. However, some businesses have reported slower response times during peak periods, which could be an issue for companies that rely on real-time support.

EBANX Customer Support

EBANX is known for its excellent customer service, offering multilingual support in English, Portuguese, and Spanish. The platform’s support team is available via live chat, email, and phone. EBANX also provides a well-organized help center and an active customer service team that’s familiar with the intricacies of the Latin American market.

Case Studies and Real-World Applications of dLocal and EBANX in Cross-Border Payment Processing

Now, we will explore real-world case studies of businesses that have successfully integrated dLocal and EBANX into their payment infrastructure. These examples will illustrate how companies have utilized these platforms to optimize payment processing, increase conversions, and expand their market reach. By understanding the challenges these businesses faced, the strategies they used, and the results they achieved, other companies can glean valuable insights into how to implement these solutions for maximum impact.

1. Case Study 1: Local and Global E-Commerce Expansion

Business Profile:

A rapidly growing e-commerce company based in North America, GlobalTech, specializes in selling high-end consumer electronics. Their main customer base includes both individual buyers and businesses located in North America and Europe. As part of their global expansion strategy, the company identified Latin America as a key target region due to its rapidly growing middle class and the increasing adoption of e-commerce.

Challenges:

• Payment Fragmentation: GlobalTech faced difficulties in reaching Latin American consumers who were more inclined to use regional payment methods such as boleto bancário (Brazil), OXXO (Mexico), and local mobile wallets.

• Currency Issues: Operating in a region with multiple currencies, the company needed a solution that allowed it to accept payments in local currencies while minimizing the impact of fluctuating exchange rates.

• Cross-Border Fees: Transaction fees associated with international payments were high, eroding profit margins and making it difficult for the company to scale quickly.

Solution:

GlobalTech partnered with dLocal to resolve these challenges. The company implemented dLocal’s API to integrate multiple local payment methods into their existing e-commerce platform. By utilizing dLocal’s multi-currency support, GlobalTech was able to accept payments in BRL (Brazilian Real), MXN (Mexican Peso), and USD, along with other local currencies. The integration allowed the company to expand its market reach to Brazil, Mexico, Argentina, and several other Latin American countries with ease.

Results:

• Increased Conversion Rates: By offering customers the ability to pay with familiar local methods like boleto bancário and OXXO, GlobalTech saw a significant increase in conversion rates. This was particularly noticeable in Brazil, where boleto bancário is a preferred payment method among consumers.

• Reduced Transaction Costs: dLocal’s competitive exchange rates and lower cross-border fees helped GlobalTech reduce transaction costs by 25%. This improvement allowed them to offer better pricing to local customers while maintaining their margins.

• Smooth Customer Experience: Local customers appreciated the flexibility of paying via their preferred methods. This enhanced customer satisfaction, leading to higher repeat purchases and positive brand sentiment in Latin America.

Conclusion:

GlobalTech’s partnership with dLocal enabled them to efficiently enter the Latin American market by providing local payment solutions and reducing the friction associated with cross-border transactions. The company’s ability to offer localized payment options, competitive fees, and a seamless user experience helped them rapidly scale their operations and achieve sustained growth in the region.

2. Case Study 2: EBANX and a Brazilian Fashion Brand

Business Profile:

StyleBrazil, a Brazilian fashion retailer, has established itself as one of the leading e-commerce platforms in Brazil. The company focuses on selling trendy clothing, accessories, and footwear to Brazilian consumers. While the company had a strong domestic presence, it sought to expand its reach to other Latin American countries, particularly Argentina, Mexico, and Chile.

Challenges:

• Limited Payment Methods: Although StyleBrazil’s e-commerce platform was well-established in Brazil, it lacked the necessary payment options to reach customers in neighboring countries. Argentine customers, for instance, preferred to use local methods such as Rapipago and Pago Fácil, which StyleBrazil did not support.

• Localized Marketing Issues: StyleBrazil needed to tailor its offerings and payment solutions to the preferences of Latin American consumers to remain competitive.

• Currency Fluctuations: As StyleBrazil expanded to countries with different currencies, they encountered challenges with currency exchange and inconsistent payment experiences for customers.

Solution:

StyleBrazil partnered with EBANX to address these issues. EBANX provided the company with an easy-to-implement API solution that supported local payment methods popular in the target markets. For example, in Argentina, Rapipago and Pago Fácil were integrated into the platform, while in Mexico, OXXO became a key payment option. EBANX also provided multi-currency support for BRL, MXN, ARS, and CLP, allowing StyleBrazil to offer a more localized shopping experience across Latin America.

Results:

• Increased Sales in Latin America: The integration of EBANX’s local payment methods significantly boosted sales in countries like Argentina and Mexico. Customers who previously had limited access to international payment solutions were now able to make purchases using their preferred methods, leading to an increase in the company’s conversion rate by 35%.

• Improved Brand Perception: Offering local payment options helped StyleBrazil build trust and credibility with customers in Argentina and Mexico. The ability to offer payments in local currencies also increased transparency, improving the customer experience.

• Cost Savings: EBANX’s competitive exchange rates and low transaction fees helped StyleBrazil reduce operational costs, especially in markets with high currency fluctuation. The company saved approximately 20% on payment-related expenses.

Conclusion:

By integrating EBANX into their e-commerce infrastructure, StyleBrazil was able to expand rapidly into new Latin American markets. The platform’s ability to provide region-specific payment methods and local currency support was pivotal in capturing a broader customer base, ultimately contributing to the company’s success in the region.

3. Case Study 3: dLocal and a SaaS Company Expanding Globally

Business Profile:

A North American-based Software-as-a-Service (SaaS) company, TechSolutions, offers cloud-based tools for business automation, with a focus on small and medium-sized enterprises (SMEs). The company had customers in North America, Europe, and parts of Asia, but they were eager to expand into emerging markets, including Latin America.

Challenges:

• Subscription Billing Complexity: TechSolutions struggled with managing recurring payments for its SaaS offerings in different Latin American countries, where there were different billing cycles, payment methods, and currency preferences.

• Cross-Border Payment Barriers: The company’s international customers in Latin America were experiencing issues with international payment systems, which led to high churn rates and customer dissatisfaction.

• Lack of Regional Expertise: TechSolutions lacked the necessary local expertise to understand the nuances of the Latin American market, particularly in terms of payment methods, taxes, and legal requirements.

Solution:

TechSolutions integrated dLocal’s global payment solution into their subscription-based model to streamline payments in Latin America. By using dLocal’s localized payment methods (including boleto bancário, OXXO, and Mercado Pago) alongside international options like PayPal and Visa, the company was able to offer a variety of payment methods tailored to the preferences of its regional customers. Local also provided tools to manage subscription billing, including recurring payments and automatic currency conversion.

Results:

• Increased Customer Retention: The company saw a significant reduction in churn rates in Latin American markets. The ability to offer region-specific payment methods and support recurring billing improved the customer experience, leading to an increase in retention by 25%.

• Simplified Cross-Border Payments: TechSolutions was able to streamline its payment processing and reduce the complexity of managing payments in multiple countries. Local’s tools for automating subscription billing saved the company considerable time and effort in managing transactions.

• Higher Revenue in Latin America: With more accessible payment options, TechSolutions saw a revenue increase of 40% from Latin American customers within the first year of integration.

Conclusion:

dLocal’s comprehensive payment solutions and subscription billing tools helped TechSolutions scale smoothly into Latin American markets. By offering localized payment methods and simplifying cross-border transactions, TechSolutions was able to enhance customer satisfaction, reduce churn, and drive higher revenue from the region.

4. Case Study 4: EBANX and a Digital Content Platform

Business Profile:

MediaWorld, a popular digital content platform offering streaming services for movies and TV shows, operates in several international markets. Although the company had a strong foothold in North America and Europe, it wanted to expand into Latin America, where its content had significant demand.

Challenges:

• Local Payment Preferences: Many Latin American consumers preferred to pay via local methods such as boleto bancário in Brazil and OXXO in Mexico, but MediaWorld’s initial payment solution did not support these methods.

• Subscription-based Payments: MediaWorld needed a seamless solution for recurring payments to manage its subscription-based revenue model.

• Cross-Border Fees: The company faced high transaction fees for international payments, which led to reduced profits in the Latin American market.

Solution:

MediaWorld turned to EBANX to solve these challenges. By integrating EBANX’s payment processing platform, MediaWorld was able to offer local payment methods like boleto bancário, OXXO, and local e-wallet options such as MercadoPago. EBANX also provided subscription billing features, allowing MediaWorld to manage recurring payments for its streaming service.

Results:

• Expanded Market Reach: MediaWorld successfully penetrated key Latin American markets, increasing its user base by 50% in Brazil and Mexico.

• Improved Payment Success Rates: The ability to offer local payment methods significantly improved the success rate of transactions, increasing payment completions by 30%.

• Cost Savings: EBANX’s local payment solutions and low cross-border fees reduced transaction costs, allowing MediaWorld to reinvest savings into content production and marketing.

Conclusion:

EBANX played a key role in helping MediaWorld scale its streaming services in Latin America by offering localized payment options and improving subscription billing. The company’s ability to offer a seamless, localized payment experience contributed to its rapid growth in the region.

Final Thoughts

The case studies presented here demonstrate the tangible benefits that businesses can derive from leveraging dLocal and EBANX in their cross-border payment processing strategies. Both platforms offer unique advantages tailored to businesses targeting Latin American markets, allowing them to reach new customers, optimize payment operations, and reduce transaction costs. By integrating these solutions into their infrastructure, companies can enhance their customer experience, improve conversion rates, and achieve sustained growth in Latin America.