A new Mastercard report shows how SMEs in Latin America are ready to expand beyond their borders – but face disproportionate costs, delays and lack of visibility of international payments.
The research reveals a need for structural redesign to boost SMEs’ inclusion and global competitiveness.
The report – Small businesses, big opportunity: Unlocking SME potential in Latin America’s cross-border space – was developed in collaboration with Payments and Commerce Market Intelligence (PCMI) and K2 and unveils why the current international payment system, designed for large corporations, does not meet the needs of small and medium-sized enterprises (SMEs) which represent 98% of the business fabric and 60% of employment in the region.
Three out of five SMEs in the region already work with international suppliers and in markets like Mexico and Brazil, 75% plan to expand their global partnerships.
The report says they face high fees, uncompetitive conversions and delays: in Brazil, 80% of payments take more than 4 days and 1 in 5 take more than 10 days.
Mastercard Move, Mastercard’s portfolio of money movement capabilities, is now aiming to transform the international payment experience for LATAM SMEs.
“Small and medium-sized businesses are the silent engine of Latin America. To reach their true potential, they need more than resilience: they need a financial infrastructure that accompanies them on their global journey,” said Walter Pimenta, Executive Vice President, Commercial and New Payment Flows at Mastercard for Latin America and the Caribbean.
