As Latin America establishes itself as a high-growth region for iGaming, regulation isn’t the only thing expanding rapidly; so are consumer transactional expectations.
In this guest article, Esteban Sarubbi, Head of Latin America at Paysafe, argues that to secure a share of the market, operators must tailor their cashier services to meet these evolving expectations, providing fast, flexible, and safe ways to pay.
With over two decades of experience shaping the financial ecosystem in Latin America, including leadership roles at SafetyPay, which Paysafe acquired in 2022, and other international payment companies and financial institutions, few understand the region’s challenges and opportunities quite like Esteban.
So it’s a privilege to hear his exclusive take on “Paying It Forward and The Art of Latin American Market Growth”.
Evolving Landscape
The Latin American iGaming space has undergone massive change in the last couple of years. In 2024, for example, Peru joined Argentina and Colombia in launching a fully-regulated online gambling market, while Brazil, with a population of 211.1 million people, kicked off this year by becoming the largest jurisdiction in the hemisphere.
And just as the region is changing at a market level, so too are players’ payment preferences in both new and more established jurisdictions evolving. Today’s savvy operators have to future-build payment systems which function smoothly right now, from Day One and for years to come.
Current payment preferences
Responding to Latin American market changes, Paysafe’s annual ‘All the Ways Players Pay’ report surveyed the region for the first time this year. With Peru’s iGaming regulation entering into force in February 2024, players’ payment preferences in the new market were a key focus.
How do Peruvians like to pay when they play? Debit cards are the top choice for online sports bettors, with 53 percent listing a bank card as one of their top three payment preferences.
That said, the growth of alternative payment methods (APMs) is increasingly challenging traditional options. While debit cards may currently be king, digital wallets are the second most popular option, with 33 percent of bettors preferring a wallet. Wallets have already surpassed the traditional method of credit cards, a go-to option for 31 percent of consumers.
Digital wallets aren’t the only APM that’s popular among Peruvians. A quarter of customers prefer betting with online cash options like our PagoEfectivo solution, which enables users to pay online using QR codes and cash at retailers (online bank transfers are also supported), we found.
The popularity of eCash is unsurprising, given the broader resilience of cash, with 29 percent of Peruvians still using it frequently in their daily lives, according to recent McKinsey research.
According to the same research, cash usage also remains significant in Argentina (used regularly by 25 percent) but is higher in Colombia (43 percent). This suggests a similar correlation between online cash and betting in these two more established markets.
eCash is a payment preference for 30 percent of players in Colombia, whose iGaming market dates back to 2017. By contrast, in Argentina, which started regulating online gambling provincially in 2018, eCash is a niche preference (of 15 percent).
Argentinian bettors are embracing other APMs, though– namely, digital wallets. Over half (52 percent) of Argentinians prefer wagering with a wallet. Cards are significantly less popular, with debit cards being the go-to preference for 32 percent and credit cards for 21 percent.
There’s a similar dichotomy between cards and digital wallets in Colombia. Wallets are the top preference in the country, with 35 percent favouring a wallet– like our Skrill solution–, compared to 32 percent opting for a debit card and just 16 percent preferring a credit card.
Payments and future growth
Whether an operator is targeting Colombia, Argentina, or Peru, they need to quite literally pay attention to bettors’ preferences at the cashier. This is critical for converting new customers and ultimately growing a brand’s revenue.
When Argentinians choose a sportsbook, the availability of their preferred payment method is a top priority, with 35 percent saying this influences their choice. Payment options are equally important in Colombia, with 34 percent emphasising this. Even in the new market of Peru, 21 percent of players will likely move on to another sportsbook if their preferred payment method isn’t supported.
As such, if operators want to maximise their conversion rates, they need to ensure their cashiers incorporate every possible payment option, so pay is never a reason a bettor can’t play. While cards are non-negotiable, so too are APMs, especially digital wallets, whose popularity is not only rivalling but often exceeding that of traditional payment options.
Operators shouldn’t procrastinate when it comes to upgrading their cashiers. And consumer appetite for APMs looks only set to grow.
In Argentina, where digital wallets are already the top preference at the cashier, 74 percent of players expect to increase their betting with wallets and other APMs over the next two-years.
Wallets’ popularity may currently be slightly lower in Colombia and Peru, but that could change very soon. Bettors in both Andean countries are even more bullish about APMs, with 85 percent of Colombians and 81 percent of Peruvians expecting to wager more with alternative solutions by the end of 2026.
What’s next?
To future-proof their brands and achieve growth, operators need to integrate a suite of APMs alongside cards.
In addition to digital wallets, this also includes online cash solutions like PagoEfectivo, which we recently upgraded with full wallet functionality to better serve Peruvian bettors at the cashier.
The region’s future will also be influenced by Brazil, whose market launched just as we issued our 2025 research.
While it’s too early to speculate on the popularity of its Pix real-time payment system among bettors, one thing is for sure about the years ahead for Latin America: diverse payment preferences and APMs will be crucial for operators’ growth.
