Latin America’s rapid digital transformation presents both opportunities and challenges for businesses. Digital platforms must overcome payment processing barriers and manage cash flow efficiently. Traditional payment service providers focus on transactions, requiring cash fees that impact margins and limit reinvestment in growth.
Traversing the complexities of the Latin American payment landscape is difficult. The regulatory environment across nineteen countries is in a perpetual state of change. Alternative payment methods such as OXXO (Mexico), Pix (Brazil), and Mercado Pago (Argentina) dominate the landscape. Different payment preferences and cultural barriers add to the challenges. An established, integrated partner is essential for success in the Latin American market.
LocalPayment by Aleph
Aleph’s acquisition of LocalPayment in October 2024 is changing how merchants navigate this landscape by providing an integration of payments and value-added services. LocalPayment not only simplifies pay-in and pay-out processing but also offers an innovative method to offset payment processing fees by using marketing opportunities to generate revenue.
LocalPayment by Aleph operates in 17 Latin American countries, supporting over 640 local payment methods such as Pix, OXXO, and digital wallets across the region. LocalPayment enables businesses to process transactions efficiently while offering consumers their preferred payment options, boosting conversion rates and reducing friction.
Aleph’s regional expertise in Latin America helps businesses handle compliance, regulatory issues, FX management, and taxes smoothly. Operating in over 150 markets, Aleph has strong ties with local financial institutions and regulators, simplifying cross-border expansion while ensuring policy compliance.
LocalPayment by Aleph helps merchants offset transaction fees using their own unsold media inventory. Instead of paying a PSP’s rate in cash, platforms allocate unsold advertising space to Aleph, which monetizes it through its media sales network. This lowers operational costs and opens new revenue opportunities for platforms.
This approach benefits industries heavily dependent on digital advertising and transactional revenue, like ridesharing, mobility services, streaming, eCommerce, and digital marketplaces. LocalPayment handles seamless transactions, while Aleph monetizes in-app ads, helping platforms enhance financial operations and user acquisition strategies.
“With LocalPayment now part of Aleph, we are not just enabling businesses to accept and process payments across Latin America—we are offering a completely new model where payment processing can be offset through unsold ad inventory,” said Ezequiel Israel, CEO at LocalPayment. “This approach is transforming how companies expand in Latin America, giving them the flexibility to scale faster and more efficiently than ever before.”
Use Cases
In ridesharing, LocalPayment by Aleph manages rider payments and driver payouts in Latin America. By using unsold ad space to cover PSP fees, platforms can avoid high cash costs and create a self-sustaining revenue cycle.
Streaming and subscription-based services face challenges with credit card penetration in cash-based economies. LocalPayment enables merchants to process alternative payments smoothly, while leveraging their own unsold ad space to reduce transaction costs.
The Strategic Choice
Aleph’s combined payments processing and media model offers a competitive edge in Latin America. Merchants can expand payment capabilities and scale user acquisition simultaneously. This integration helps businesses boost conversion rates, optimize costs, and reinvest in growth, making the digital economy more accessible and profitable.
