Exclusive data revealed today byEBANX, a global technology company specializing in payment services for emerging markets, shows that the Software as a Service (SaaS) market in Latin America will double in size by 2027. In a pace of rapid growth, the sector's transaction volume will jump from USD 22 billion in 2023 to USD 46 billion in two years, according to data from the Payments and Commerce Market Intelligence research institute analyzed by EBANX.
"The rapid growth of the SaaS sector reflects a major shift in how Latin Americans work, learn, and live in the digital economy."affirmsMarie-Elise DrogaCRO of EBANX."Companies of all sizes are adopting SaaS to increase their competitiveness and grow efficiently. Consumers are increasingly turning to these digital services for productivity, entertainment, education, financial management, and much more," he adds..
The Latin American SaaS market is the fastest growing in the world, with an expansion rate of nearly 23% in 2024, above the global average (17%), Europe (19%), North America (17%), and Asia (16%). The EBANX analysis is based on data from Statista and PCMI.
Marie-Elise DrogaExplain that the key to success in Latin America lies in offering the right combination of payment options, combining traditional methods such as credit and debit cards with alternative solutions like digital wallets and instant payment systems, such as Pix.Companies that understand local preferences and offer a variety of payment methods to their customers are the ones best capturing the full potential of this growing market.”.
Credit cards, for example, generate thehighest payment frequencyamong the SaaS partner companies of EBANX that operate in Brazil, Mexico, Colombia, and Peru. In these countries, users make about four purchases per year using this method. With bank slip, SaaS companies achieve the highestaverage order valuesin Brazil and Chile. Other alternative payment methods such as Pix in Brazil and Nequi in Colombia have agreater customer loyalty, with 95% of users of these systems using exclusively these means for SaaS purchases.
CanvaGlobal visual communication platform, adopted a business strategy for Latin America with EBANX's localized payment solutions in 11 countries in the region, including Brazil, Mexico, Colombia, Chile, and Peru. With the partnership, the platform's goal is to offer a personalized experience to customers in each of these countries, with options such as digital wallets, instant payments, and credit and debit cards, including installment plans and cards from national brands.
“Latin America plays an important role in Canva's growth, representing a significant portion of our global user base and results. That's why we are doubling our efforts to deliver a truly local experience — from language to design models and payment options. By offering flexible and locally relevant payment methods, we are increasing people's access to our premium resources and unlocking the full value of Canva."it says"Felipe GodoyInternational Growth Marketing Leader LATAM at Canva.
Another SaaS giant that recognizes Latin America as a business growth opportunity is themonday.coma global software company that transforms how businesses operate. EBANX data shows that offering a payment mix with installment credit card payments and bank slips boosted the presence ofmonday.comin Brazil, with an average ticket above USD 9,000. In the last three years, the company has recorded an average annual growth of 41% in Total Payment Volume (TPV) through EBANX.
Pix drives growth of SaaS and digital inclusion in Brazil
The expansion of SaaS in Latin America is driven by Brazil and the rapid adoption of Pix, used by 93% of its adult population. The instant and free payment system played a central role in promoting financial inclusion, allowing millions of people to use digital services.Currently, Pix accounts for 61% of the revenue of SaaS companies that process payments in Brazil through EBANX..
THEAutomatic Pixa new feature that went into operation in June is expected to further boost SaaS companies' sales by enabling recurring payments, a widely used billing method in the industry. Like Latin America, Brazil is also expected to double its market by 2027, reaching USD 22 billion alone, with an annual growth rate of 15%, based on PCMI data.
