Payment service provider PayU has become the first payment gateway to offer Google Pay to its online merchant customers in Colombia.
The integration will provide users in the country a faster and safer transaction experience in response to the growing trend of Colombians adopting mobile payment methods, with a 22% projected annual growth.
Google Pay offers a simplified payment experience by using tokenisation, securely storing card information on its servers and using tokens for each transaction. This system allows a payment token to be sent to the user’s device, which is then converted into card information before communicating with the bank.
Due to tokenisation, users can make transactions in a few clicks, while online stores benefit from a seamless experience, as Google Pay ensures secure transactions.
Users and merchants will also benefit from boosted conversion rates by adding their card onto Google Pay, along with advanced security and multiple mobile device compatibility, accommodating multiple mobile phones and merchant systems.
Jaime Parra, Head of Product, Latin America at PayU, said: “The integration of GPay responds to the needs of consumers and merchants for innovative tools that simplify the payment process.”
Globally, over 40% of consumers already use digital wallets, and in Latin America, the use of these tools is expected to grow by 30% annually in the coming years.
According to a recent report by Statista, the mobile wallet transactions market in the region is projected to reach $372bn by 2025, compared to $59bn in 2020, driven by the increasing penetration of smartphones and the rise of e-commerce.
E-commerce in Colombia has also experienced exponential growth, reaching an estimated value of COP 62.1trn (£11.3trn) in 2023, according to the Colombian Chamber of e-commerce. Transactions through PayU have grown 157% over the past four years, with a projected growth trend of 60% between 2022 and 2027.