Operating high-value sales in Latin America efficiently

Learn how global B2B companies can assemble a seamless payment strategy for high-cost products and services.

August 16, 2022
9 min read

Learn how global B2B companies can assemble a seamless payment strategy for high-cost products and services.

The digital market in Latin America has become one of the fast-growing sectors worldwide, and its evolution is likely to continue. Having Brazil and Mexico as the most dynamic countries, the whole region indicates a hypergrowth of 30% every year until 2025.

Latin American digital demand: A double-digit growing market

Brazil and Mexico account for 70% of the Latin American digital commerce

Source: Beyond Borders, 2021/2022

Read ahead to uncover how B2B companies can apply top-notch best practices to enhance performance in LatAm when processing a heightened volume of money, also known as high tickets.


What are the prime reasons pushing growth?

The prior bases for this accelerated blossoming market include the expansions of digital services in the region, such as SaaS companies, which have been gaining colossal investment from venture capital. Also, the remote work combined with a high internet penetration rate has contributed to the digital transformation of the Latin American landscape

In addition, many Latin American businesses are increasingly adopting AI-enabled Cloud and SaaS solutions to improve processes and enhance customer experience. The software market in LatAm is rapidly expanding due to accelerated digitalization leading to higher SaaS demand.

These factors combined upshots in a promising and fortunate context. Global B2B tech companies can find a powerful and profitable ground here — but only if the challenges blocking their growth path are known and surpassed.

It comes with its own set of challenges: How to vanquish

Latin America is home to a diverse and mixed-up population. Its culture, customer preferences, and payment behaviors have many particularities. Tech companies pursuing growth and performance optimization must comprehend and address the distinct buyer’ needs and choices.

It’s usual to witness B2B multinational businesses expanding to Latin America, often charging their clients in foreign currencies, such as USD. This behavior only makes it challenging for local companies in LatAm to effectively predict and plan the cost of the service and the end of the term.

The solution is a robust payment strategy composed of diverse local payment methods — a first step to supporting the efficient processing of high-value transactions.

Processing high-ticket transactions in Latin America

High-ticket items are high-value and high-priced products or services that offer buyers more excellent value. Companies can define it by its transaction history or predicting what they foresee getting.

It might sound like a fortunate situation to accept a heightened amount of money in one transaction. However, selling products or services that start in the hundreds and top out in thousands of cash requires the ability to run a robust and reliable payment strategy

High-cost sales don’t need to be brain surgery

Global B2B tech companies that experience processing high-value tickets from their Latin American customers face the same challenge: a manual, complex, expensive, and slow process that prevents scalability and performance optimization. 

What are the characteristics behind this particular payment processing category, and how can tech companies build a seamless strategy for it?

Here are four measures you must ensure you count on your payment system to make the most of high-cost processing.

1.Payment Offering

The number of default options for accepting payments is limited for enterprises processing high-value transactions. It only narrows the chances for Latin American businesses to choose the best one it fits their context. 

A Latin American company willing to implement a new solution, product, or service will decide over the provider that offers a diverse range of local payment options.

How does Latin American B2B business prefer to pay for a product or service?

In Latin America, tech companies are increasingly willing to spend on new tools and solutions through payment methods that suit the local circumstances.

Cash-based payments and Pix are the main methods of B2B digital payments in Brazil

Source: Netscribes, 2021
  • Cash-based payments: The most common form of payment with 70% market share and is heavy-adopted by local tech companies to facilitate cash transactions. These include Boleto in Brazil, OXXO in Mexico, Via Baloto and Efecty in Colombia, and ServiPag in Chile, among others.
  • Bank transfers/PIX: Direct bank transfers (or invoice payments) are the preferred method for SaaS in the case of high-ticket purchases, especially in the B2B sector. Pix has been replacing other bank transfer forms in Brazil, winning a significant market share. The perfect example of a rapid payment preference shift that players must stay on top of.

Exponential growth: PIX, the revolutionary Brazilian instant payment system.

Source: Beyond Borders, 2021/2022
  • Credit card: This is the third most popular payment method for tech B2B companies, generally used for low-value tickets. 

When used for high-value trades, installments — a popular and preferred way to put Latin American companies more in control of their budget, are a game-changer for B2B companies to reach the addressable market.

 2. Recurring payments: The key to performance optimization

Any B2B tech company that experience the processing of high-cost transaction must continuously sharpen its recurring machine; this is vital to raise performance. 

Having a diverse payment mix beyond credit cards is crucial to maintaining an effective strategy based on recurrence. It will enable you to gain visibility and control over the amount of money you acquire. 

Recurring payments are the key for:

  • Speed up transactions; 
  • Save time;
  • Take some guesswork out of budgeting. 

Learn more about the secret to high approval rates on recurring payments

3. Financial and reconciliation management

High-value processing in the B2B market is not known as easy and cost-efficient to manage. Get to know three quick learnings you can apply to your payment strategy to streamline this process. 

Save time with automated processes: Processing high-value transactions sometimes means losing time with manual reconciliation. Having all the information centralized to monitor transactions in real-time will enable you to automate internal processes and save your team’s time. 

Charge in local currency and receive in USD: Establish a clear connection with your Latin American business customers and charge them in their local currency. A local payment provider in Latin America will allow you to collect your customers’ payment amount and taxes in the local currency, such as BRL, the Brazilian currency, and remit your funds in USD, always compliant with local regulations. 

Stay ahead on price negotiations with currency hedging: In Latin America, exchange rate fluctuation is a pain for global B2B companies. Removing this hardship is possible when you can operate with a payment provider offering you fixed FX rates, increasing the chances of winning a new deal or renewal.

4. Fraud prevention

Even though fraud is still one of the main challenges to digital services in Latin America, the opportunities remain more significant than the risk. Holding healthy approval rates can be manageable when processing high-pricing tickets localized. Tailoring a fraud prevention strategy for high-value transactions fraud behavior in Latin America has a lot of particularities.

To overcome the risks it is necessary to mitigate them, apply protection rules, and preserve clients. It is also essential to ensure the regulations do not stop transactions in the process. Managing transactions with high value requires a complete warranty end-to-end process to avoid scams. 

Check out the 4-pillar process to shield high-ticket sales in Latam

  1. Fraud prevention: When setting an anti-fraud strategy for your business, consider: protecting rules, risk scoring, device fingerprint, block & trust list, provider routing availability, and target approval rate 
  1. Managing fraud: If fraud occurs, time to manage the chargeback dispute and trigger the supplementary acquires. 
  1. Continuous improvement: It’s essential to keep track of performance by testing new hypotheses and modifications to assure the best execution. 
  2. Performance monitoring: A centralized hub with all the information you need to follow will give insights to enhance your rates and business’ health.

Managing high-cost transactions in Latin America doesn’t need to be a headache

Despite the region’s specificities, the great potential the Latin American market can furnish to global companies willing to raise revenue is unquestionable. 

Keep your journey through and uncover the power of a unique solution that supports elevating the payment process by charging your Brazilian clients quickly and safely: EBANX High Tickets


Read the Beyond Borders 2023 study

Read the Beyond Borders 2023 study

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