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PayPal launched in Latin America PayPal.Me, a new payment platform aimed at streamlining commerce for SMEs by eliminating the need to issue invoices or input personal bank information.
The service, which is available in 35 countries including Argentina, Chile, Peru, Colombia, Costa Rica and Mexico, is targeted at independent professionals, freelancers and tourism service providers, PayPal said. According to local authorities, Chile and Argentina have 1.76mn and 407,680 independent professionals, respectively, PayPal added.
Users send a client the link paypal.me/usuario, which the recipient clicks on and then makes the payment directly using credit or debit cards associated with their PayPal accounts.
A 2016 IDC study sponsored by PayPal predicted e-commerce spending in Latin America to reach US$100bn in 2018, an increase of 177% over 2014 with growth driven by the middle class segment and increased internet access.
In a guest column published by BNamericas, Dino Sani, head of sales & relationship management for Latin America at BNY Mellon, highlighted the need for greater collaboration between traditional banks and fintech providers, saying regulatory and security barriers have made banks slow to adapt to new digital markets.
PayPal has been exploring ways of streamlining payments in Latin America for several years. In 2015, PayPal and Chilean digital transactional services company Multicaja signed an agreement allowing local companies to accept and make payments abroad using their local checking accounts, with currency automatically exchanged into dollars or back into pesos.