Focus on Convenience Stores and Packaged Goods Outlets
Traditional retail in Latin America, the Caribbean, and the United States presents a digital payment opportunity of over 448 billion dollars, particularly in sectors like convenience stores and packaged goods outlets, according to a Mastercard report.
Key Insights from the Study
- Scope: The study examines nearly 12 million traditional retail businesses across 11 countries, ranging from convenience stores to small independent businesses.
- Sales Volume: These retailers generate approximately 362 billion dollars in sales, with 43% still conducted in cash, representing a 155 billion dollar opportunity for digital payments adoption.
- B2B Transactions:
- 90% of transactions between small businesses and their suppliers (equivalent to 293.4 billion dollars) are still made in cash, checks, or traditional methods.
- Total Opportunity: The combined figures highlight a 448.4 billion dollar opportunity for digital payment adoption.
For financial service providers, including fintech companies, digitizing even a fraction of this market could accelerate financial inclusion and operational efficiencies across the region.
Challenges & Recommendations
“While small businesses provide essential goods and employment, their reliance on cash keeps them excluded from formal financial systems, limiting access to credit and growth opportunities.”
The report identifies emerging trends transforming retail payment methods:
- E-commerce Platforms: Specialized platforms for small businesses allow digital order systems, reducing cash dependency.
- Conversational Commerce: Instant digital payments and integrated credit solutions are gaining importance.
- Fintech Collaborations: Such partnerships facilitate access to microloans for small businesses, enabling growth without relying on informal financing sources.
