Developments within payments since the turn of the decade have rapidly shaped the e-commerce and finance sectors, but the innovation has laid within emerging markets that are fuelling the appetite for more alternative payment methods.
Alexander Berrai, Deputy CEO at emerchantpay, has witnessed this first-hand, and he spoke to Payment Expert on why emerging regions like Asia-Pacific and Middle East North Africa (MENA) are leading this charge, and why “all eyes” should be on Latin America next.
He also discussed why Brazil’s Pix has become the “rockstar” of real-time payments and why its success has seen a surge in demand for more efficient account-to-account (A2A) payments.
Payment Expert: Firstly Alexander, what are your biggest takeaways and key findings from the recent Global Payments Outlook Report?
Alexander Berrai: If I had to sum it up in one line: The future of payments is fast, flexible, and definitely not one-size-fits-all.
Our report shows just how quickly consumers are reshaping expectations around payments. Alternative methods like Buy Now, Pay Later (BNPL), digital wallets, and local schemes are no longer niche—they’re the new norm.
For example, BNPL is set to grow at a whopping 26% CAGR by 2030, and digital wallets will power over 60% of global e-commerce by 2028. It’s clear: people want choice, control, and speed at checkout.
Open Banking is another game-changer, unlocking a $135bn opportunity by 2030. It’s giving consumers more power over their data and payments, and merchants more ways to deliver seamless, personal experiences.
Bottom line? If you’re still treating payments like a back-end function, it’s time to flip that script. Payments are now a customer experience play – and a big one.
PE: What can other emerging markets learn from Brazil when it comes to deploying a payment method like Pix? Are there certain boundaries currently in place?
AB: Pix is Brazil’s rockstar of real-time payments. What made it successful? A regulator that didn’t just regulate, but innovated. The Central Bank of Brazil took charge, made it mandatory, and made it easy. Free for consumers, low-cost for PSPs and built for inclusion, it brought millions of unbanked people into the digital economy.
It became so ubiquitous, so fast that in some cities, you’d struggle to find someone not using Pix, whether it’s paying rent, splitting lunch or tipping your barber with a QR code.
That said, growth hasn’t come without friction. The speed and simplicity of Pix has also made it a target for fraudsters, particularly among newly banked users still unfamiliar with digital finance.
For other countries looking to replicate it, the lesson is clear: innovation works best when infrastructure, regulation and education move together.
PE: How vital is it for Latin American countries like Argentina, for example, to have in place sufficient cross-border payment capabilities in the face of uncertain inflation?
AB: In countries facing economic volatility, cross-border payments become more than a convenience – they’re a financial coping mechanism.
Argentina’s a prime example. With inflation making headlines for all the wrong reasons, individuals and businesses alike have turned to cross-border options to protect value and keep trade flowing. Between 2022 and 2024, Argentina saw an 80% rise in electronic payment adoption, a clear sign of shifting behaviour.
Cross-border payments allow consumers to hold or send money in more stable currencies, and they enable merchants to stay connected to the global economy. When your local currency’s value can fluctuate by the time your coffee cools, that kind of flexibility becomes a necessity.
PE: Has BNPL maintained popularity within regions like LatAm? How dependent is regulation around BNPL?
AB: BNPL is gaining traction in Latin America, but it’s still warming up compared to markets like Europe or the US. In 2024, it made up just 1% of e-commerce transaction value across the region. That said, uptake is growing fast in countries like Mexico and Brazil, thanks to increasing smartphone penetration and a shift toward digital-first buying habits.
The catch? Regulation. Without clear rules and consumer protections, BNPL can quickly veer into risky territory. That’s why we’re seeing countries like Mexico and Argentina move toward tighter oversight for digital finance providers.
In more mature BNPL markets, regulation helped the model scale responsibly. It’s what prevents BNPL from becoming the wild-west of credit. If Latin America builds that same regulatory foundation, BNPL has the potential to become a key driver of financial inclusion and consumer choice.
PE: E-commerce has now become the predominant retail buying method in today’s age. But what can regions like MENA and LatAm learn from other regions to grow its e-commerce sectors and potentially surpass them?
AB: MENA and Latin America are both seeing massive e-commerce growth – Brazil alone is expected to hit $150bn by 2027, and MENA’s market is projected to reach $112.6bn by 2025. But while the numbers are strong, the growth is uneven. Urban areas are thriving. Rural regions? Not always.
One key lesson from Asia-Pacific is the power of mobile-first infrastructure. In APAC, entire ecosystems have been built around mobile wallets, embedded finance and super apps. Consumers can shop, pay, chat, and bank, all within a single platform.
For MENA and LatAm, success will hinge on more than just mobile payments. It’s about investing in last-mile logistics, expanding delivery networks, and educating first-time online buyers. Add to that tools like AI-driven recommendations and voice-based commerce and you’ve got a recipe to not only catch up, but leap ahead.
PE: How long will it be before we see more consumer demand for account-to-account (A2A) payments and how can merchants and online payment service providers facilitate this?
AB: A2A payments are already on the rise – and quickly gaining traction. In Latin America, they’re expected to account for 29% of domestic e-commerce payments by 2026. Globally, the A2A market is projected to grow from $1.7trn in 2024 to $5.7trn by 2029.
The demand is there. Now it’s a matter of readiness.
For merchants and PSPs, this means integrating A2A options into checkout alongside traditional methods, and making sure the experience is as smooth as it is secure. That includes clear user experience, instant confirmation, and educating users who might still be wondering, “Is this safe?”
Done right, A2A brings lower transaction costs, faster settlement and fewer chargebacks, a win-win for businesses and consumers alike.
PE: Lastly Alexander, which emerging market/region do you believe has innovated within the digital payment space over the past several years, and which one will innovate further in the coming years?
AB: Asia-Pacific has led the way in payment innovation for years – and not by accident. Widespread mobile adoption, government-backed digital infrastructure, and financial inclusion initiatives have powered the region’s rise. By 2027, 77% of all e-commerce payments in APAC are expected to be made through digital wallets. That’s scale and innovation at work.
But if we’re talking about who’s next, all eyes should be on Latin America.
Brazil’s Pix system showed what’s possible when the right mix of regulation, infrastructure, and consumer adoption comes together. In a region where traditional banking has often struggled to reach the masses, digital payments are closing that gap, fast.
The fintech energy in LatAm is palpable. Mobile-first behaviours, rising digital literacy and pro-innovation regulators are setting the stage. If the momentum holds, Latin America won’t just follow global payment trends, it’ll start setting them.
