Enhance MTO Services with LATAM Countries by Offering Prepay Nation’s Digital Value-Added Products

19th November, 2024

Author: Ana Vargas (Marketing) and Mariana Giron (Commercial)

Category: Industries

Prepay Nation can offer Money Transfer Operators (MTOs) working with LATAM countries a range of services and solutions that enhance their offerings and create new revenue streams.

Here’s how Prepay Nation can bring value to MTOs working with Latin America:

1. Mobile Top-Ups for Prepaid Customers

Latin America has a large base of prepaid mobile users and increasing mobile internet adoption, making mobile top-ups a valuable service.

As of the end of 2023, approximately 418 million people (about 65% of the population) in the region used mobile internet, marking a growth of 75 million over the past five years​. In fact, prepaid mobile users make up a substantial portion of this market with the overall mobile subscriber count in the region projected to reach 649 million by 2030, with a considerable share being prepaid users​.

This trend underscores the importance of mobile top-ups, as many users prefer the flexibility and control that prepaid plans offer, particularly in economically diverse regions.

The economic impact of mobile services is also noteworthy, contributing around $520 billion to the region’s GDP in 2023, which accounts for about 8% of the total economic output​.

Given this context, the demand for mobile top-up services is likely to remain strong, as they provide essential connectivity for a large segment of the population, facilitating access to information, communication, and digital services​

By partnering with Prepay Nation, MTOs can:

• Offer Mobile Airtime Top-Ups: Money Transfer Operators (MTOs) have a valuable opportunity to expand their offerings by enabling customers to send mobile airtime or data top-ups directly to family and friends across Latin America (LATAM). This service not only enriches remittance options but aligns with a rapidly growing demand: mobile data usage in LATAM is projected to more than triple over the next five years due to rising smartphone adoption and the popularity of video content. The demand for LATAM mobile data products has shown consistent monthly growth in Europe, by doubling the figures especially notable in Mexico, where remittances reached a record high of 58,497 million MXN, doubling over the past six years.
• Do Real-Time Transactions: Leveraging Prepay Nation’s platform, users can send mobile top-ups in real-time to over 200 operators in 150+ countries, ensuring seamless connectivity with major LATAM carriers like Flow, Digicel, Telcel, Movistar, Claro, Altice, Viva, Natcom, and AT&T. This extensive network enables fast, secure, and reliable service for customers, allowing them to support loved ones abroad with instant access to airtime and data.

2. Digital Vouchers and Gift Cards

Digital vouchers and gift cards market in Latin America is experiencing a significant growth, driven by changing consumer behaviors and the expansion of e-commerce. In fact,

• The Latin American gift card market is projected to reach an estimated $14.3 billion this year alone, with a compound annual growth rate (CAGR) of 1% expected through 2028​.
• It’s anticipated that e-gift cards will surpass physical gift cards for the first time, capturing 48% of the market share in 2024.​ This trend has been accelerated by the pandemic, the convenience that digital solutions offer and by the fact that younger generations, especially Gen Z consumers, are buying 70% more gift cards than older generations, spending significantly on open-loop gift cards that offer flexibility across multiple brands​.
• The use of regulatory frameworks such as Pix in Brazil and CoDi in Mexico has further facilitated the growth of digital payment methods, enhancing the adoption of gift cards.
• During the holiday season, shoppers in Latin America planned to allocate a significant portion of their budgets to gift cards, reflecting a trend where 43% of their total holiday budget was expected to be spent on those.

These trends indicate a vibrant and evolving landscape for digital vouchers and gift cards in Latin America, making them a valuable service in the region’s growing digital economy.

3. Bill Payment Services

MTOs can further support their customers by enabling them to cover utility bills—such as electricity, water, gas, and telecom services—for family members in LATAM countries. For example, Prepay Nation currently allows for electricity payments in the Dominican Republic. But why include prepaid electricity in the product lineup? Electricity distributors in the Dominican Republic face several challenges that impact payment consistency:

• High levels of energy theft in certain neighborhoods.
• Low bill payment rates among residents.
• A longstanding perception that energy distribution is a government responsibility.
• Frequent power outages that create a sense of poor service, leading some users to question the value of paying, particularly in areas with limited energy availability.

Adding prepaid electricity as a remittance option can address these barriers, improving access and supporting the local utility ecosystem.

4. Loyalty Programs and Tailored Promotions

Prepay Nation’s loyalty and rewards programs help MTOs reduce churn and increase customer retention. By offering loyalty points, bonuses or cashback for transactions, MTOs can:

• Reward Frequent Users: Customers who regularly use the MTO’s platform for money transfer, mobile top-ups, bill payments, or any other digital products/ services can accumulate points and redeem them for discounts or bonuses.
• Tailored Offers for LATAM Customers: With Prepay Nation, MTOs can launch market-specific campaigns, such as airtime or data bonuses for transactions made and hence boosting engagement and retention in the LATAM market.

Prepay Nation has already different market use cases that show the impact of such campaigns.

5. Cross-Selling Opportunities

To further enhance the offering, MTOs partnering with Prepay Nation can bundle services with money transfers, delivering greater value and convenience to customers. By including digital vouchers, utility payments, and services like mobile data packs alongside remittance options, MTOs can create a more comprehensive and versatile solution that meets a wider range of customer needs. This approach not only boosts transaction frequency but also strengthens customer loyalty and attracts new users who seek a seamless way to support their families with essential services and connectivity. Additionally, bundling services opens up cross-selling opportunities, driving revenue growth for MTOs.

6. Localized Offers and Promotions

Prepay Nation understands the unique needs of Latin American markets and can offer MTOs localized promotions tailored to specific countries and customer segments. For exemple:

• Targeted Discounts: Discounts on mobile top-ups or digital services can be offered during special holidays or events like Christmas, Mother’s Day, or Independence Day in LATAM countries.
• Culturally Relevant Products: Due to its extensive partner network, Prepay Nation provides products that resonate with Latin American communities, such as mobile recharges for specific local operators or vouchers/bill payments for popular LATAM retailers.

7. Seamless Integration via API

Prepay Nation offers API integration, making it easy for MTOs to incorporate it’s services into their existing platforms, allowing

• Real-Time Transactions: MTOs can provide customers with instant top-ups, bill payments, and digital vouchers.
• Low-Cost Integration: Prepay Nation’s API can be seamlessly integrated, minimizing operational costs and complexity for MTOs.

8. Data Insights and Analytics

MTOs working with Prepay Nation can access valuable data and analytics on customer behavior. This data can be used to:

• Target Campaigns More Effectively: By understanding which services are most popular in specific countries or among certain demographics, MTOs can tailor their marketing efforts.
• Improve Customer Retention: Analyzing transaction data helps identify patterns, allowing MTOs to design personalized offers that resonate with their customers and reduce churn.

9. Increased Revenue Streams

With Prepay Nation’s broad range of services, MTOs can generate additional revenue beyond money transfers. Each mobile top-up, bill payment, or digital voucher purchase provides new opportunities for MTOs to:

• Diversify Income Sources: Offering a variety of digital services alongside traditional money transfers helps MTOs capture more value per customer.
• Grow Their Customer Base: By catering to the diverse needs of LATAM customers – such as mobile recharges and digital vouchers – MTOs can attract more users and retain existing ones.

Prepay Nation provides MTOs working in LATAM countries with a comprehensive suite of services that go beyond traditional remittances. By adding value through mobile top-ups, digital vouchers, bill payments, loyalty programs, and more, MTOs can increase customer retention, boost transaction volumes, and open up new revenue streams.

Prepay Nation’s seamless API integration and real-time transaction capabilities further enhance the MTO’s ability to serve the Latin American market effectively.

Get in contact with us today and find out more.