Local Payments in LATAM: Why High-Risk Merchants Can’t Rely on Cards Alone

Latin America has become one of the most attractive growth regions for iGaming and adult businesses. 

A young, mobile-first population, and a strong appetite for digital entertainment, and rapidly growing online spending make LATAM impossible to ignore.

LATAM and Asia are two busiest and rapidly growing regions. Today’s focus on Latam.

But merchants expanding into the LATAM region quickly discover a hard truth:

"Credit Card processing is not enough to win LATAM customers."

Local payment methods are no longer “nice to have” — they are a critical part of conversion, acceptance, and risk strategy, especially for iGaming and Adult.

At PayConsults, we’ve seen firsthand how local payments unlock volume that traditional card acquiring simply can’t reach.

The Rise of Local Payments vs Credit Cards in LATAM

While credit cards still play a role in Latin American eCommerce, their dominance has steadily declined — particularly in high-risk sectors.

Across major markets like Brazil, Mexico, Colombia, Peru, and Chile, consumers increasingly prefer:

• Instant bank transfers (Pix, SPEI, PSE)

• Local bank debits

• Cash-based vouchers and real-time payments

• Digital and prepaid wallets

Why not credit cards?

• Higher card decline rates due to local issuer behavior

• Stricter card network rules for gambling and adult content

• Limited credit access even among banked users

• Strong trust in domestic banking rails

In contrast, local payment methods are:

• Designed for domestic banks

• Optimized for real-time settlement

• Less exposed to international card scheme restrictions

• More familiar and trusted by end users

For iGaming and adult merchants, this often translates into:

• Higher approval rates

• Lower friction at checkout

• Reduced dependency on fragile card setups

Financial Inclusion in LATAM: Accelerated After COVID

COVID-19 fundamentally reshaped financial behavior across Latin America.

Millions of consumers opened:

• Bank accounts

• Digital wallets

• Mobile banking apps

  
  

Governments and banks accelerated financial inclusion initiatives, pushing real-time payments and digital rails into the mainstream.

Today:

• Roughly 80% of adults in LATAM are considered “banked”

• Mobile banking penetration continues to rise year-over-year

• Instant payments like Pix in Brazil have become everyday tools, not niche alternatives

  
  

However, being banked does not mean being card-enabled — and this distinction is crucial for merchants.

Banked Adults vs Credit Card Holders

One of the biggest misconceptions among international merchants is assuming that “banked” equals “credit card user.”

In reality:

• A large portion of banked adults do not own a credit card

• Others own cards but face low limits, issuer restrictions, or online usage blocks

• Many consumers actively avoid cards due to debt concerns or failed transactions

Across LATAM:

• The majority of adults have a bank account

• Less than two-thirds of those banked adults hold a credit card

• Even fewer can reliably use cards for high-risk merchants

What does this mean for iGaming & Adult businesses?

If your checkout relies primarily on credit cards:

• You’re excluding a large, banked audience

• You’re increasing decline rates

• You’re leaving revenue on the table

Local payment methods bridge this gap by allowing users to pay directly from their bank accounts.

Why Local Payments Should Be at the Core of Your LATAM Strategy?

For high-risk merchants entering or scaling in LATAM, local payments are not a workaround — they are a strategic advantage.

Adding local payment options at checkout delivers:

✅ Higher acceptance rates

✅ Access to non-carded but banked users

✅ Reduced dependency on volatile card acquiring

✅ Better user trust and familiarity

✅ Faster deposits and withdrawals

This is especially critical in industries like iGaming and Adult, where:

• Card monitoring is strict

• Acquiring stability matters

• Player experience directly impacts retention

At PayConsults, we help high-risk merchants:

• Access local LATAM payment methods

• Navigate regional banking nuances

• Optimize checkout performance

• Reduce friction and improve approval ratios

Whether you’re entering LATAM for the first time or looking to scale volume sustainably, local payments are the foundation — not the backup plan.

Credit cards alone won’t get you there.

Local payments will.

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