Guide to navigating iGaming payments in Latin America

Latin America is seeing explosive growth in iGaming. The regulated online gambling market is expected to grow fivefold to $7.8 billion in 2027, up from $1.5 billion in 2023.

Brazil will account for around half this regional total, after long-awaited regulation came into force at the start of 2025. And it’s a similar story in other markets.

A combination of regulation, technological innovation and changing player behavior is driving an uptick in iGaming interest and activity right across Latin America.

We look at how iGaming operators can use payments to make the most of the LatAm iGaming opportunity.

Regulatory change unlocks opportunities

Latin America’s regulated online gambling industry is forecast to grow significantly as new licensing regimes are established across the region.

From 01 January 2025, Brazil adopted a clear regulatory framework for sports betting and online gaming, including a zero-tolerance approach to unlicensed betting. Brazil is poised to become one of the largest regulated betting economies, worth around $4 billion by 2027, according to Vixio estimates.

Currently, Colombia, Panama, Peru and parts of Argentina have licensing systems in place to regulate online gambling. Incumbent operators in Mexico may offer casino games and sports betting online. Meanwhile in Nicaragua and Paraguay, incumbent land-based casinos may apply for online gaming licenses.

The legalization of iGaming across LatAm gives operators huge scope for expansion and collaboration.

Technology improves accessibility

The iGaming industry has always been an early adopter – and early monetizer – of new technology. From experiments with virtual reality and augmented reality to use of AI and data analytics, iGaming operators are considering how these technologies complement mobile technologies.

They’re trialling everything from more immersive experiences via virtual reality casinos to live dealer games, which replicate a traditional casino feel. And using AI and data analytics to personalize promotions, suggest games, prevent fraud and manage risk.

Technology is transforming iGaming, making it accessible anytime, anywhere for a new generation of players. It’s enabled operators to attract new players from untapped demographics, such as women and younger consumers, and turn causal players into regular customers.

Building a better player experience

When it comes to enhancing the player experience, two aspects continue to dominate players’ expectations in LatAm: security and speed.

A 2024 Paysafe research report found that 41% of player identified security as their primary concern when depositing funds with a sportsbook, most notably in LatAm markets, such as Argentina (51%).

FOMO is real for players as a result. As well as real-time in-play or in-gaming betting, players in LatAm want instant, frictionless funding of their gaming accounts. And when they win, they want pay-outs to be just as quick and easy.

The need for speed of pay-in and payout is underscored by 73% of respondents to a Paysafe surveyanticipating that real-time payments will become the industry norm within the next two years.

Payments as a strategic driver

Payments power everything from revenue collection to player loyalty, business expansion to fraud prevention. So much so they’ve become a strategic driver of business.

At the most basic level, you don’t want to turn away players because they cannot pay. This is a very real possibility in the LatAm region for two main reasons.

Firstly, large parts of the population are unbanked. According to World Bank Findex data, adults with a financial account range from 87% in Chile and 84% in Brazil down to 57% in Peru and 45% in Panama. This is very different to the 95%+ rates of banked adults in the US and Europe.

Secondly, not everyone has, uses or trusts payment cards online. Several markets, including Brazil, ban the use of credit cards for gaming.

Consequently, local payment methods, sometimes also known as alternative payment methods or APMs for short, are important for attracting and retaining players in LatAm.

Types of local payment methods in LatAm

Offering more payment choice has become almost table stakes for iGaming operators. Electronic cash or eCash is particularly popular for online payments in LatAm, due to the strong cash culture.

Digital wallets, including pan-regional ones such as Mercado Pago and PayPal, are also a favored way to deposit and withdraw iGaming funds.

Some popular local payment methods country by country include:

• Argentina: Mercado Pago (digital wallet), Naranja (local card)
• Brazil: Pix (bank transfer), Boleto Bancário (cash voucher), Mercado Pago (digital wallet), Elo (local card), Hiper (local card)
• Chile: Mercado Pago (digital wallet), PayPal (digital wallet), MACH (digital wallet)
• (local card), PayPal (digital wallet)
• Peru: Yape (digital wallet), PLIN (digital wallet), PayPal (digital wallet)
• Colombia: Mercado Pago (digital wallet), PayPal (digital wallet), Daviplata (bank transfer)
• Mexico: OXXO (cash voucher), Carnet Regulation. Technology. Player expectations. Local payment methods. We help operators navigate the dynamic iGaming scene in Latin America with confidence.

Cross-border payment complexity, simplified

iGaming operators can partner with cross-border payment processors to manage payments from different countries and currencies.

Such payment providers specialize in aggregating multiple international payments and currencies into a single platform. For example, Inpay offers faster, smarter, more secure cross-border payment across 200+ payout countries in 90+ currencies through a single integration.

Localizing the checkout experience – displaying payment amounts in the player’s local currency, offering local payment methods and supporting local languages – helps iGaming operators reach more customers globally.

Localization boosts players’ confidence to transact and consequently conversion rates. And helps iGaming operators increase revenue, cut integration and other costs and improve business.

It pays to consider the alternatives

iGaming has evolved into a highly competitive industry, driven by changes in regulation, technology and player expectations. Inpay helps simplify payment complexity for iGaming operators – and their players.

Our instant, low-cost, multi-currency payments to 200+ countries act as a simple alternative to SWIFT and wire transfers. We deliver the instant pay-in/payout experience players increasingly demand via our proprietary banking network.

That’s true across 36 European countries with Instant SEPA, and many more further afield, including some of the industry’s most traditionally complex corridors in APAC, LATAM and more

Winnings arrive in full which is great for players. And even better for iGaming operators, as payments are cheaper than traditional bank transfers, debits or original credits to cards.

We also offer Open Banking-enabled pay-ins, which are more convenient for players, and increase conversion rates for operators, with significant savings vs card payments.