Powered by Pix, Latin America SaaS market to double in size by 2027, reveals EBANX

Exclusive data revealed today by EBANX, a global technology company specializing in payment services for emerging markets, show that the Software as a Service (SaaS) market in Latin America will double in size by 2027. At a rapid growth rate, the value moved by the sector will jump from USD 22 billion in 2023 to USD 46 billion in two years, according to data from the research institute Payments and Commerce Market Intelligence analyzed by EBANX.

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“The rapid growth of the SaaS industry reflects a major shift in the way Latin Americans work, learn and live in the digital economy”, affirms Marie-Elise Drug, EBANX CRO. “Companies of all sizes are adopting SaaS to increase their competitiveness and grow efficiently. Consumers increasingly turn to these digital services for productivity, entertainment, education, financial management and more”, he adds.

The Latin American SaaS market is the fastest growing in the world, registering an expansion rate of almost 23% in 2024, above the global average (17%), Europe (19%), North America (17%) and Asia (16%). The analysis of EBANX is based on data from Statista and PCMI.

Marie-Elise Drug he explains that the key to success in Latin America is to offer the right mix of payment options, joining traditional methods such as credit and debit cards with alternative solutions such as 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 that are best able to capture the full potential of this expanding market”.

Credit cards, for example, generate a higher frequency of payment among the EBANX SaaS partner companies operating in Brazil, Mexico, Colombia and Peru. In these countries, users make about four purchases per year using this method.With bank slip, SaaS companies reach the largest average order values in Brazil and Chile. Other alternative payment methods such as Pix, in Brazil, and Nequi, in Colombia, have a increased customer loyalty, 95% of users of these systems using exclusively these means for SaaS purchases.

Canva, a global visual communication platform, has adopted a business strategy for Latin America with EBANX localized payment solutions in 11 countries in the region, including Brazil, Mexico, Colombia, Chile and Peru. With the partnership, the goal of the platform 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 installments and national flag cards.

“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 redoubling 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 features and unlocking the full value of Canva”, he says Felipe Godoy, LATAM International Growth Marketing Leader at Canva.

Another SaaS giant that recognizes Latin America as a business growth opportunity is monday.com, a global software company that transforms how business works.EBANX data shows that offering a payment mix with installment payments on credit card and bank slip boosted the presence of monday.com in Brazil, with an average ticket above USD 9,000. In the last three years, the company has registered an average annual growth of 41% in the Total Volume of Payments (TPV) through EBANX.

Pix drives SaaS growth 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. Pix is currently responsible for 61% of the revenue of SaaS companies processing payments in Brazil through EBANX.

O Pix Automatic, new functionality that came into operation in June, should further boost sales of SaaS companies by allowing recurring payments, a billing method widely used in the sector. Just like Latin America, Brazil is also expected to double its market by 2027, reaching USD 22 billion, with a growth rate of 15% per year, based on PCMI data.