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

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

In Brazil, WhatsApp was 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 second.

Brazil’s digital ecosystem: omnipresent and advanced

According toStatesman93.4% of internet users in Brazil use WhatsApp; it goes far beyond a simple messaging tool — it is part of everyday 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 renegotiations via WhatsApp. In 2023, the Central Bank authorized payments via WhatsApp, allowing users to pay for products and services directly in the chat using Visa and Mastercard cards.

All industries in Brazil followed this path, using WhatsApp to interact instantly and efficiently with their customers. Here, we are used 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 the way customers interact with brands. Companies are increasingly investing in direct communication channels to collect primary data, as privacy concerns and the elimination of third-party cookies are making it harder to reach potential customers.

DataRecent data indicates that 22% of internet users on mobile devices 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.

Furthermore, customers expect increasingly faster and personalized responses. Interestingly, research indicates that many consumers prefer the speed of a chatbot over lengthy human interactions. In the USA,second89% of consumers already prefer to communicate via messages. While conversational commerce is already a reality in Brazil, in the USA it is still in the growth phase.

In the past decade, all companies wanted to create their own apps. Today, the priority is to ensure presence on customers' WhatsApp. While American companies have not yet realized it, we have already learned that customer loyalty does not depend on an app, but rather on providing agile and relevant messages through 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 master the art of creating exceptional experiences with Rich Communication Services (RCS). Although WhatsApp already has more than100 millionof monthly active users in the country, he still does not lead the market. The RCS, on the other hand, has been consolidating. Currently, most smartphones sold in the United States, both Android and iOS, are compatible with RCS, as long as they are updated and operated with carriers that support this technology.

Android accounts for about 46% of the smartphone market in the US, according to data fromCanalys, 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 that, almost 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 has been slow, mainly due to fragmentation among operators and resistance from Apple. This scenario began to change when Google standardized the service, and Apple finally yielded to market pressure in 2024. Furthermore, antitrust investigations in both the United States and Europe have helped accelerate the adoption of RCS by promoting platform compatibility.

Technological leaps and success stories in Brazil

The Brazilian dominance in digital platforms is not 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 are still fragmented and often charged.

In my experience, both in Brazil and the USA, I still see American companies sending checks by mail monthly. The Brazilian digital ecosystem for payments in restaurants and B2B companies is three to five years ahead of the American one.

The Brazilian Paradox of Innovation

Despite progress in some areas, Brazil also has its challenges. E-commerce, for example, took time to gain strength due to logistical difficulties and limited internet infrastructure in the past. Only when the government realized it could boost adoption with initiatives like Pix did the scenario start to change rapidly.

Streaming services, such as Globoplay and Netflix, faced similar barriers to reach the Brazilian audience. However, the creativity and adaptability of Brazilians helped overcome these difficulties, often resulting in more innovative solutions.

Global Communication Platforms: A Comparison

WhatsApp's penetration rate in Brazil, at 93.4%, surpasses that of any other similar platform in the world. In China, WeChat has about 80% penetration, according to data from theStatesman, and functions as a complete ecosystem for communication and payments. In Australia, asurveyHootsuite and We Are Social reveal that Facebook Messenger dominates with 83% adoption. However, in Brazil, centralization on WhatsApp has created a highly efficient and connected digital environment.

The Rich Communications Service (RCS) Solutions Dominating Global Markets: A Visual Analysis of Regional Preferences

With the advancement of RCS in the USA, Brazilian companies have a unique opportunity to apply their knowledge in a growing market. This movement not only drives global innovation but also strengthens our position as a benchmark in digital engagement. The future of corporate communication will be shaped by those who know how to take advantage of this transition and offer experiences that meet the new expectations of consumers.

E-Commerce Update
E-Commerce Updatehttps://www.ecommerceupdate.org
E-Commerce Update is a leading company in the Brazilian market, specialized in producing and disseminating high-quality content about the e-commerce sector.
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