EBANX Reports 40% Revenue Growth for Companies Offering Installments in Brazil

Boosting Revenue through Installment Payments in Brazil

Recent findings from EBANX, a global payment technology platform, have revealed a striking trend in Brazil's consumer market: companies offering installment payment solutions are experiencing an impressive average growth in weekly revenues of 40%. This phenomenon is markedly notable in the gaming sector, where average order values (AOV) see a dramatic surge, reaching an increase of nearly 98% when compared to traditional single-payment transactions.

Why Installments Matter

Eduardo de Abreu, Vice President of Product at EBANX, articulated the significance of installment payments, attributing their popularity to the economic history of Brazil. He explained that the practice of paying in installments has been ingrained in Brazilian culture since the inflation crisis of the 1980s and 1990s, making it a convenient option for consumers. "Over time, installments have become a widely accepted means of making larger purchases, thus deeply rooted in both Brazilian and Latin American transactions," de Abreu stated.

Gaming Industry Surging Ahead

Latin America has emerged as a crucial market for international gaming companies, with revenue projections showing a growth of 6.2% for 2024, outpacing other global regions such as Asia-Pacific, North America, and Europe. This growth can be strategically attributed to the increasing adoption of installment payments, which serve to attract and retain consumers. EBANX's data indicates that by integrating installment options, a particular gaming platform experienced a staggering 169% rise in AOV within just one year, while another company benefited from a consistent 14% boost in weekly revenues.

These statistics highlight how effectively installment payments enable companies to build stronger customer relationships. Notably, after introducing this payment method, one merchant reported that 30% of Brazilian customers, who had not engaged with the platform within a month, returned to make higher-value purchases.

Navigating Unique Market Dynamics

De Abreu noted the importance of understanding customer behavior across different markets. He emphasizes that tailoring payment solutions to meet the unique needs of Latin American consumers can unlock substantial revenue opportunities. By providing a mix of traditional and alternative payment methods, global businesses can enhance user engagement and sales conversions.

For example, renowned companies are proactively modifying their payment infrastructures to incorporate local preferences, thereby increasing their market share. EBANX fosters this growth by proposing a plethora of payment options that resonate with the local population, leading to a more seamless and fulfilling purchasing experience.

The Road Ahead for EBANX and Partner Companies

EBANX was founded in 2012 with the goal of providing accessible payment solutions for international digital commerce in Brazil and beyond. With extensive knowledge and understanding of local markets, EBANX is committed to paving the way for future growth and expansion for its partners. By emphasizing installments as a key strategy to engage Brazilian consumers, companies stand to benefit from heightened revenue streams and customer loyalty in the vibrant Latin American market.

In conclusion, with the rise of installment payments reshaping the landscape of consumer spending, businesses that adapt to these flexible payment options will discover new growth pathways. As the Brazilian market continues to evolve, the balance between tradition and innovative payment methods could define the success of many companies in this dynamic region.