Brazil ahead of the US? Digital engagement can be a gateway for Brazilian brands in the American market

While the United States still deals with fragmented communication platforms, Brazil stands out for the 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, taking advantage of our dominance 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: by offering new products or entering new markets.

The digital ecosystem of Brazil: ubiquitous and advanced

According to Statist93.4% of internet users in Brazil use WhatsApp, it goes far beyond a simple messaging tool 'IT's part of everyday life. From organizing a barbecue to opening a bank account, WhatsApp is fundamental for personal and professional communication. For small and medium-sized companies, it works as a CRM, marketing tool and even e-commerce platform.

In the financial sector, banks such as Banco do Brasil and Bradesco allow balance inquiries, transfers and even debt renegotiation 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 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 the way 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 difficult to reach potential customers.

Data recent reports indicate 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 the consumer's power of choice over when and where to engage with brands is increasing.

In addition, customers expect faster and more personalized responses. Interestingly, research indicates that many consumers prefer the speed of a chatbot to time-consuming human interactions.In the US, there are many second the Twilio 89% of consumers already prefer to communicate via messages. While in Brazil conversational commerce is already a reality, in the US it is still in the growth phase.

In the past decade, all companies wanted to create their own applications. Today, the priority is to ensure presence in WhatsApp of customers. While American companies have not yet realized, we have learned that customer loyalty does not depend on an application, but rather to offer agile and relevant messages in 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 more than 100 Million of monthly active users in the country, it still does not lead the market. The RCS, on the other hand, has consolidated. Currently, most smartphones sold in the United States, both Android and iOS, are compatible with RCS, provided 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 the Canalys, and the vast majority of modern Android devices have already supported RCS since 2017. The iPhone, which dominates 54% in the market, has incorporated RCS in iOS 18, released in September 2024. With this, virtually all Americans with mobile 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 between operators and Apple's resistance.This scenario began to change when Google standardized the service, and Apple finally gave in to market pressure in 2024. In addition, antitrust investigations in both the United States and Europe helped accelerate the adoption of RCS, by promoting cross-platform compatibility.

Technological leaps and success stories in Brazil

The Pix, launched by the Central Bank, has revolutionized instant payments and surpassed American alternatives in speed, accessibility and comprehensiveness.While Pix is free and universal, American systems are still fragmented and often charged.

In my work, both in Brazil and in the US, 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.

The Brazilian Paradox of Innovation

Despite the 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 that it could boost adoption with initiatives such as Pix, the scenario began to change rapidly.

Streaming services such as Globoplay and Netflix faced similar barriers to reaching Brazilian audiences.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, 93.4%, surpasses that of any other similar platform in the world.In China, WeChat has about 80% of penetration, according to data from Statist, and functions as a complete ecosystem for communication and payments.In Australia, a surveying from Hootsuite and We Are Social reveals that Facebook Messenger dominates with 83% adoption. However, in Brazil, centralization in WhatsApp has created a highly efficient and connected digital environment.

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

With the advancement of RCS in the US, 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 reference in digital engagement.The future of business 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.