IFC, a member of the World Bank Group, is investing Rs 42 Crore (US$7 million) in SafetyPay, a company that through its secure payment system gives people in Latin America access to the lower prices and increased efficiency of online commerce.
SafetyPay enables consumers who may not have a credit card to buy online goods and services using their bank account. Merchants who use the system benefit from an expanded customer base and SafetyPay’s low transaction fees. Banks can offer their customers an attractive new service and generate revenues from their online banking facility, without any additional investment.
Safety Pay – Online Money Transfer
“In many developing countries people do not have access to credit cards and have—until recently—not been able to make online purchases,” said SafetyPay CEO Manuel Montero. “With the financial support of investors such as IFC, we are continuing our aggressive growth strategy to partner with banks and companies to give more consumers in Latin America access to our services”.
SafetyPay, headquartered in Florida, was launched in Peru in 2007 and is active in Mexico, Costa Rica, Brazil, and Colombia. The company currently has partnerships with 84 banks in Latin America, and with many of the region’s leading firms, including Groupon, Peruvian Airlines, Volaris Airlines, and Despegar.
“Online commerce increases price transparency, lowers transaction costs, and enhances export opportunities”, said Kent Lupberger, IFC Global Head of Telecommunications, Media, and Technology. “SafetyPay is playing an important role in giving more people access to online commerce, and we look forward to supporting their continued growth”
Latin America has a fast growing e-commerce market. Total online retail sales in the region grew from $8 billion in 2006 to $43 billion in 2011, with an average annual growth rate of 41%.