 22-Apr-18, Perspectiva

Most digital wallet products in Latin America and around the world are brought to market by banks or telecom providers. Think BBVA Wallet (bank), mPesa (mobile operator) and Apple Pay and Samsung Pay (tech companies).

Image: AMI Perspectiva

Most of these products have floundered since their launch. BBVA Wallet, for example, launched in Mexico, Colombia, Peru and Chile, is successful at attracting users but not at generating volume. Evidence suggests that consumer brands may be better prepared to offer digital wallets to consumers in Latin America than banks. 

In a highly strategic move, Amazon launched Amazon Cash, a prepaid account to enable non-credit card purchases, in Q4 2017. By capturing prepaid digital funds, Amazon is creating digital liquidity and loyalty. This creates fantastic opportunities for Amazon, and competition for banks and card networks.

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 Financial Services insights