The leading online payment company PayPal, aims to provide its cryptocurrency services in Latin America. Federico Gómez Schumacher, general director of the company for Latin America, conformed it.
The interest in the Latin market is a consequence of the amount of remittances that are mobilized in the region using cryptocurrencies as a means of transaction, which is of great interest to the company. “There is quite a significant potential (for payments with cryptocurrencies), because what we have seen is that they facilitate transactions between countries, even within certain countries where perhaps the penetration of financial services has certain restrictions,” stressed the director
Gómez Schumacher admits the company’s users that the client portfolio is currently quite small, just 5 %, but he is optimistic and confident in the expansion it will have in the region.
PayPal conquers the Brazilian market
In recent months, PayPal’s participation in the Latin American market has increased, adding more than one and a half million new customers in Mexico as a result of Covid-19, becoming the main recipient of remittances in the region, accentuating the use of cryptocurrencies for money transfers around the world.
According to the data provided by Bitso, during 2020 “almost 2.5 % of all money transfers to Latin America were made through cryptocurrencies.”
At the moment PayPal is applying strategies to increase its presence in the region and for this it is applying some strategies that allow it to expand in the market. In Brazil, for example, it made several commercial alliances with different financial entities that would allow them “electronic payments with debit cards, and it is offering a digital wallet with banking services such as PIX (a means of instant payments) and ticket payments.”