Digital Commerce in Chile

PROSPECTS

New financial model will allow for more innovation in payments

Chile has historically been dependent on a “three-part payment model”, which includes the merchant, operator and bank. In this model, Transbank, which is a payment facilitator, was the sole player in card payments for merchants.

Social crisis could become an opportunity for remote payments

There are two “cyber” events each year that generate high expectation levels among both consumers and merchants as these consistently generate record sales. As it was so close to Christmas, Cyber Monday has now been moved to early October, with this three-day event strongly affecting the general performance of physical and digital commerce in Chile.

Boom in proximity QR payments

Currently, consumers can only find two different QR players to make proximity payments through at retailers. However, by mid-2020 there will be at least two more, in addition to other payment means such as contactless wallets and traditional card and cash payments.

COMPETITIVE LANDSCAPE

Banco Estado upgrades its CuentaRut debit card

Banco Estado is the largest issuer of debit cards in the country through its CuentaRut, a debit card that can be obtained cost free just by having Chilean nationality. The CuentaRut debit card is currently transitioning to being operated by Visa.

Retailers get ready to compete through local wallets

Retailers, which have also started to develop mobile apps for contactless payments and to develop digital payments, are ahead of financial institutions, transitioning to a “four-part payment model”. Falabella, which has channel involvement in department stores, modern grocery, home improvement, internet retailing and consumer finance, was the first player to bring a wallet to Chile using Google Pay.

Dynamism in last-mile services

In the last couple of years five last-mile players entered the market, although one has already left. Although most of them entered offering last-mile services through foodservice – Rappi, PedidosYa, Glovo and Uber Eats – all of the players have evolved and added new business verticals within retail or finance, boosting digital payments.

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