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Latin America Payment Methods

Latin America has low credit card penetration and high cash preference. In Brazil, 50-70% of online shoppers use Pix (instant bank transfers). In Mexico, 30-40% use OXXO (pay cash at convenience stores). Cards alone lose you half the market.

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When to Add LATAM Payment Methods​

Add LATAM methods when:

  • 10%+ of customers are from Brazil or Mexico
  • Cart abandonment is high in LATAM countries
  • You're using Stripe, Adyen, or dLocal
  • You can handle 3-5 day settlement delays (cash-based methods)

Skip LATAM methods when:

  • Under 5% LATAM customers
  • You're on Square or US-only processor
  • You can't ship to LATAM or have no local pricing
  • Your product is under $20 (cash methods have high fees)

Processor Support for LATAM Methods​

MethodStripeShopify PaymentsSquareAdyendLocal
Pix (Brazil)✅✅❌✅✅
Boleto (Brazil)✅✅❌✅✅
OXXO (Mexico)✅✅❌✅✅
Mercado Pago❌❌❌✅✅

Bottom line: Stripe/Shopify support the big three (Pix, Boleto, OXXO). For Mercado Pago, use Adyen or dLocal.

Pix (Brazil)​

What It Is​

Pix is Brazil's instant payment system launched in 2020:

  • QR code or account key
  • Instant transfer (under 10 seconds)
  • 24/7 availability
  • Works from any Brazilian bank account

Adoption: 70%+ of Brazilian adults use Pix. It's the dominant payment method.

Why It Matters​

Brazil payment preferences (2025):

  • Pix: 50-70% of online transactions
  • Cards: 25-35%
  • Boleto: 10-15% (declining)

If you're selling to Brazil and don't offer Pix, you're missing half your potential customers.

Implementation (Stripe)​

Effort: 4-8 hours

Steps:

  1. Enable Pix in Stripe dashboard
  2. Add Pix to checkout
  3. Generate QR code for customer
  4. Customer scans with their banking app
  5. Instant payment confirmation
  6. Fulfill order

Stripe fee: 1.4% + R$0.45

Pricing Comparison​

R$100 transaction in Brazil:

  • Pix: 1.4% + R$0.45 = R$1.85 (1.85% effective)
  • Card: 2.9% + R$2 = R$4.90 (4.9% effective)
  • Pix saves: R$3.05 per transaction

Pix is significantly cheaper than cards for Brazilian transactions.

Gotchas​

  1. Instant payment, delayed settlement: Customer pays instantly, but you receive funds in T+1-3.
  2. QR code expiration: Pix QR codes expire in 15-60 minutes. Build refresh logic.
  3. Refunds are separate: Pix refunds are new transactions (not reversals).
  4. Brazil-only: Only works for Brazilian bank accounts.

Boleto (Brazil)​

What It Is​

Boleto is Brazil's cash voucher payment system:

  • Customer gets barcode at checkout
  • Pays cash at bank, lottery kiosk, or online banking
  • Payment confirmation in 1-3 days

Used by: Brazilians without credit cards or who prefer cash.

Why It Matters​

Boleto was the primary method before Pix. Now it's declining but still relevant:

  • 2020: 25-30% of transactions
  • 2025: 10-15% of transactions

Don't skip Boleto if you're adding Pix. Some customers still prefer it.

Implementation (Stripe)​

Effort: 4-8 hours

Steps:

  1. Enable Boleto in Stripe
  2. Add to checkout
  3. Generate Boleto voucher
  4. Customer pays at bank/kiosk
  5. Confirmation received (1-3 days)
  6. Fulfill order

Stripe fee: 2.95% + R$2

Pricing Comparison​

R$100 transaction:

  • Boleto: R$4.95 (4.95% effective)
  • Card: R$4.90 (4.9% effective)
  • Similar cost to cards

Gotchas​

  1. Payment delay: 1-3 days for customer to pay. Hold fulfillment until confirmed.
  2. Expiration: Boletos expire in 3-30 days. Customer may forget to pay.
  3. Non-payment rate: 10-25% of Boletos are never paid (abandoned).
  4. Can't refund: Boleto is cash. Refunds require issuing new Boleto or bank transfer.
  5. Being replaced by Pix: Boleto usage declining. Still relevant but prioritize Pix.

OXXO (Mexico)​

What It Is​

OXXO is cash payment at convenience stores in Mexico:

  • Customer gets voucher at checkout
  • Pays cash at any OXXO store (20,000+ locations)
  • Confirmation in 1-3 days

Used by: 40% of Mexicans are unbanked or underbanked. OXXO gives them access to e-commerce.

Why It Matters​

Mexico payment preferences:

  • Cards: 40-50%
  • OXXO: 30-40%
  • Other: 10-20%

Without OXXO, you're missing 30-40% of Mexican market.

Implementation (Stripe)​

Effort: 4-8 hours

Steps:

  1. Enable OXXO in Stripe
  2. Add to checkout
  3. Generate OXXO voucher with barcode
  4. Customer pays at OXXO store
  5. Confirmation received (1-3 days)
  6. Fulfill order

Stripe fee: 1.85% + MX$11

Pricing Comparison​

MX$500 transaction (~$25 USD):

  • OXXO: 1.85% + MX$11 = MX$20.25 (4.05% effective)
  • Card: 2.9% + MX$6 = MX$20.50 (4.1% effective)
  • OXXO is slightly cheaper

On small transactions, OXXO's flat fee hurts. Better for purchases over MX$300 ($15 USD).

Gotchas​

  1. Payment delay: Customer must physically go to OXXO. 1-3 days is normal.
  2. Non-payment rate: 15-30% of vouchers are never paid (customers change their mind).
  3. Cash-only: Can't refund to OXXO. Must issue bank transfer or new voucher.
  4. Mexico-only: Only works in Mexico.
  5. Expiration: Vouchers expire in 3-7 days typically.

Implementation Priority for LATAM​

If you have LATAM customers, add in this order:

Tier 1: Must-Have​

CountryMethodPriority
BrazilPixP0 - Dominant method
MexicoOXXOP0 - 30-40% adoption

Tier 2: Should-Have​

CountryMethodPriority
BrazilBoletoP1 - Declining but still 10-15%
ArgentinaMercado PagoP1 - If material ARG volume

Tier 3: Nice-to-Have​

CountryMethodPriority
ColombiaPSEP2 - If expanding to Colombia
ChileServipagP2 - If expanding to Chile
PeruPagoEfectivoP2 - If expanding to Peru

Focus on Brazil and Mexico first. They're 60%+ of LATAM e-commerce market.

Cash Method Operational Considerations​

Payment Delays​

Cash methods (Boleto, OXXO) have settlement delays:

MethodCustomer PaysYou Receive FundsFulfillment Timing
PixInstantT+1-3Can ship immediately
Boleto1-3 daysT+3-5 after paymentWait for confirmation
OXXO1-3 daysT+3-5 after paymentWait for confirmation

Risk: Fulfill before payment and customer never pays.

Best practice: Wait for payment confirmation before shipping.

Non-Payment Rates​

Customers generate vouchers but never pay:

MethodTypical Non-Payment Rate
Pix5-10% (abandoned QR codes)
Boleto15-25% (never paid)
OXXO20-30% (never paid)

Factor this into forecasting. 100 OXXO vouchers = 70-80 actual payments.

Refund Complexity​

MethodRefund ProcessTimeline
PixSeparate Pix transfer1-2 days
BoletoCannot refund; issue bank transfer5-10 days
OXXOCannot refund; issue bank transfer5-10 days

You can't refund cash methods the same way as cards. Build separate refund workflows.

Test to Run​

LATAM payment method ROI calculator:

Week 1: Geography analysis

  1. Calculate % of revenue from:
    • Brazil: ____%
    • Mexico: ____%
    • Other LATAM: ____%

Week 2: Method selection 2. Brazil over 10%? Add Pix + Boleto 3. Mexico over 10%? Add OXXO 4. Estimate adoption:

  • Brazil: 60% will use Pix, 10% Boleto
  • Mexico: 35% will use OXXO

Week 3: ROI calculation 5. Example: $50K/month Brazil sales

  • Expected Pix adoption: 60% = $30K
  • Conversion lift from offering Pix: 40%
  • Additional revenue: $30K × 40% = $12K/month
  1. Implementation cost: 8-16 hours
  2. Payback: Immediate

Success criteria: If potential monthly revenue lift > $3K and LATAM is 10%+ of sales, add regional methods.

Scale Callouts​

Under $50K/month, under 10% LATAM:

  • Skip LATAM methods
  • Cards + PayPal work fine
  • Focus on US market

$50K-$250K/month, 10-20% LATAM:

  • Add Pix for Brazil
  • Add OXXO for Mexico
  • Skip Boleto unless Brazil is 20%+

$250K-$1M/month, 20%+ LATAM:

  • Full method suite (Pix, Boleto, OXXO)
  • Consider local pricing in BRL/MXN
  • Monitor non-payment rates

Over $1M/month, 30%+ LATAM:

  • Consider dLocal or Adyen for local acquiring
  • Add country-specific methods (Mercado Pago, PSE, etc.)
  • Optimize for regional fraud patterns

Where This Breaks​

  1. Fraud on cash methods: Pre-payment fraud is different. Customers can generate fake vouchers, you ship, payment never arrives.

  2. Currency volatility: BRL and MXN are volatile. Price in local currency or USD? Both have trade-offs.

  3. Tax complexity: Brazil has complex tax rules (ICMS, PIS, COFINS). Research before launching.

  4. Shipping costs: LATAM shipping is expensive and slow. Factor this into unit economics.

  5. Customer support in Portuguese/Spanish: Boleto and OXXO customers expect local-language support.

Next Steps​

Ready to launch in LATAM?

  1. Set up Pix and Boleto for Brazil (Stripe dashboard)
  2. Set up OXXO for Mexico
  3. Test payment flows with Stripe test accounts
  4. Monitor non-payment rates closely

Want to optimize LATAM?

  1. Add local currency pricing (BRL, MXN)
  2. Implement payment method ordering by customer location
  3. Build cash method non-payment tracking

High-volume LATAM?

  1. Consider dLocal for local acquiring
  2. Add country-specific methods
  3. Implement fraud rules for cash method abuse

See Also​