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Brazil ahead of the USA? Digital engagement could be a gateway for Brazilian brands in the North American market

While the United States still deals with fragmented communication platforms, Brazil stands out for its creative and integrated adoption of WhatsApp. Brazilian companies are far ahead in digital engagement, and this gives us a strategic advantage to compete and expand in the American market, leveraging our mastery of messaging platforms, especially WhatsApp.

In Brazil, WhatsApp has been uniquely adapted. With this expertise, we have a real opportunity for global growth. I learned in graduate school that there are two main ways to expand a business: offering new products or entering new markets. And Brazil is exceptionally well positioned to do the latter.

Brazil’s digital ecosystem: ubiquitous and advanced

According to Statista, 93.4% of internet users in Brazil use WhatsApp. It goes far beyond a simple messaging tool—it’s part of daily life. From organizing a barbecue to opening a bank account, WhatsApp is essential for personal and professional communication. For small and medium-sized businesses, it functions as a CRM, marketing tool, and even an e-commerce platform.

In the financial sector, banks like Banco do Brasil and Bradesco allow balance inquiries, transfers, and even debt renegotiation via WhatsApp. In 2023, the Central Bank authorized payments via WhatsApp, enabling users to pay for products and services directly in the chat using Visa and Mastercard cards.

All industries in Brazil have followed this path, using WhatsApp to interact instantly and efficiently with their customers. Here, we are accustomed to quick responses, whether from humans or machines. For us Brazilians, WhatsApp is the heart of our digital ecosystem.

The new rules of engagement: how megatrends are transforming digital experiences

Global trends are changing how customers interact with brands. Companies are increasingly investing in direct communication channels to collect primary data, as privacy and the elimination of third-party cookies are making it harder to reach potential customers.

Data recently indicate that 22% of mobile internet users in the United States use ad blockers, while in Brazil only 16% have this tool. This shows that consumers’ power to choose when and where to engage with brands is increasing.

Moreover, customers expect increasingly faster and personalized responses. Interestingly, research indicates that many consumers prefer the speed of a chatbot over slow human interactions. In the U.S., according to Twilio, 89% of consumers already prefer to communicate via messaging. While conversational commerce is already a reality in Brazil, it is still growing in the U.S.

In the past decade, all companies wanted to create their own apps. Today, the priority is to secure a presence on customers’ WhatsApp. While American companies haven’t realized it yet, we’ve already learned that customer loyalty doesn’t depend on an app but on offering agile and relevant messages on the channels they already use.

Surprise! Most Americans can use RCS—but they don’t even know what it is!

Brazilian companies have a unique opportunity in the United States, as we have mastered the art of creating exceptional experiences with Rich Communication Services (RCS). Although WhatsApp already has over 100 million monthly active users in the country, it still doesn’t lead the market. RCS, on the other hand, has been gaining ground. Currently, most smartphones sold in the United States, both Android and iOS, are RCS-compatible, as long as they are updated and operate with carriers that support this technology.

Android represents about 46% of the U.S. smartphone market, according to data from Canalys, and the vast majority of modern Android devices have supported RCS since 2017. The iPhone, which dominates 54% of the market, incorporated RCS in iOS 18, released in September 2024. With this, virtually all Americans with a cell phone already have access to RCS.

But why is this happening now? Although RCS was developed in 2007, its adoption was slow, mainly due to fragmentation among carriers and Apple’s resistance. This scenario began to change when Google standardized the service, and Apple finally yielded to market pressure in 2024. Additionally, antitrust investigations in both the United States and Europe helped accelerate RCS adoption by promoting cross-platform compatibility.

Technological leaps and success stories in Brazil

Brazil’s mastery of digital platforms isn’t limited to WhatsApp. Pix, launched by the Central Bank, revolutionized instant payments and surpassed American alternatives in speed, accessibility, and coverage. While Pix is free and universal, American systems remain fragmented and often charge fees.

In my work, both in Brazil and the U.S., I still see American companies mailing checks monthly. Brazil’s digital ecosystem for restaurant and B2B payments is three to five years ahead of America’s.

The Brazilian Innovation Paradox

Despite advancements in some areas, Brazil also faces challenges. E-commerce, for example, took time to gain traction due to logistical difficulties and limited internet infrastructure in the past. It was only when the government realized it could boost adoption with initiatives like Pix that the scenario began to change rapidly.

Streaming services, like Globoplay and Netflix, faced similar barriers in reaching the Brazilian audience. However, the creativity and adaptability of Brazilians helped overcome these challenges, often resulting in more innovative solutions.

Global Communication Platforms: A Comparison

WhatsApp’s penetration rate in Brazil, at 93.4%, surpasses any similar platform worldwide. In China, WeChat has about 80% penetration, according to data from Statista, and functions as a complete ecosystem for communication and payments. In Australia, a survey by Hootsuite and We Are Social reveals that Facebook Messenger dominates with 83% adoption. However, in Brazil, the centralization around WhatsApp has created a highly efficient and connected digital environment.

RCS (Rich Communication Services) Solutions Dominating Global Markets: A Visual Analysis of Regional Preferences

With the rise of RCS in the U.S., Brazilian companies have a unique opportunity to apply their expertise in an emerging market. This movement not only drives global innovation but also strengthens our position as a reference in digital engagement. The future of business communication will be shaped by those who know how to leverage this transition and offer experiences that meet consumers’ new expectations.

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