What's Next For Crypto In LATAM?

You might not be aware just yet, but LATAM is the last remaining continent to conquer. Brands are moving in, some are already here, but do they know what they're doing?

As in every region, marketing here is different. Trends are different. Social ties are different. The good news is that it all feels like a blank canvas for crypto.

The bad news? Adoption.

Boasting 300m online shoppers and spenders, the general internet user is no stranger to an app interface. I see Shein absolutely dominating in the clothing market. Cheap Chinese products, easily accessible, it's the LATAM dream.

Why Adoption Is Hard

Aside from the obvious regional legislation and legal hurdles, the desynchronisation of content means having an immense diversification in your own growth strategies. Everything cannot just be blanket applied.

Countries are separated not just by borders, but also in GDP, spending habits, outlets and much more. What may be a pain point in one country, is not in the other. Of course, cross border payments are a shared interest, and a large reason as to why crypto could perform in the region, but beyond that, there's an even greater task.

The marketing.

Every region has its own distinct businesses that provide a similar service.

Let's focus on just payments. As a neobank, your end goal would be to have users across LATAM, all using your service.

But, you're competing against a group of already trusted regional providers. Colombia uses Nequi, Brazil uses Pix (amongst others), Mexico has multiple, but even their famous convenience store chain Oxxo — also famous in Colombia — has its own payments platform.

These relationships are built on trust. Nequi and Pix are central bank trusted or issued, and others like Yape in Peru are owned by major banks.

How Can New Brands Succeed In The Region?

Unfortunately, I've already wasted the opportunity to use 'the marketing' as a short, punchy, one-liner. But it's true.

The current titans of payment apps across LATAM fall short in their approaches to innovation.

They're used because vendors use them, and offer reduced payment fees. Nothing more.

However, time is running out. Nubank is one example emerging as a key player in the region. Adopting an elevated marketing and social media ecosystem that far exceeds competitors. Yet, it's more CeFi with crypto features, it's not purebred DeFi.

What we can learn from Nubank is that their social strategy works, it's not by chance that they have appeared as the dominant player on social media.

Now, allow me to clearly address the question at hand. Brands may succeed in LATAM if they correctly manage social media to grow a culture interested in product exploration.

Why Does Product Exploration Matter

Current population usage of the regional providers is driven by distribution and familiarity, not curiosity.

Swathes of customers did not adopt these out of sheer might to disrupt the traditional banking rails. Oh no. They were merely adopted because suddenly you didn't need to carry coins to buy a tinto and a cigarette on the corner of the street.

Thus, you need your content and product to align in purpose.

Entertain, explore, engage through your content, ensure this mentality is evident in the user who you want to do the latter in your app. Both are arguably traditional pillars of tech adoption, but in this case, DeFi does not, at face value, jump out as a necessity to most. The same goes for most investment vehicles. A consumer needs a phone, they can't see the benefit in having an ISA.

Your short term goal at succeeding should be measured in this, have you managed to create an audience and user that actively looks to explore your product, in order for it to become part of everyday life.

From behind your screens I hear you cry 'But how can this be achieved through content?'

Well...you won't believe this, but, marketing.

Before The Product, Comes Personality

Create a world of content so rich, there are many paths of exploration.

Your feeds, your interfaces, your channels are all discovery points for your audience.

Especially channels where your customers lurk. These must be accessible pages of information, which in this case, is content. Partnerships, dedication to visuals, post variety are all ways to communicate to audiences.

User Funnelling Using Content As An Adoption Channel

Real adoption for DeFi and associated services shall be difficult if intended audiences do not first know about the brand for reasons other than 'finance'.

As aforementioned, LATAM is somewhat of a blank canvas for marketing. Although brands have inevitably started AI ads at scale, true advertising and articulate marketing are still fresh.

With that being said, the customers have very little, but very strong ties to a select few brands. This spans across other industries, in some cases, too. Beer is a good example. There are 2-3 top brands per country. Maybe this is the Brit within me speaking, but that seems a tab bit low, no?

The point remains, use your content to create an audience of explorers. Allow them to build ties with the brand through positive association with how they have felt or interacted with them externally to product.

Your end goal biggest distribution channel should be your community in a continent that is rightfully known for having strong family and communal bonds.

Where You Could GTM?

So, you've got your revolutionary 6% cashback card ready to go, an Instagram account with 'el futuro de moneda' in its bio. Who do you target?

Let's ideate. For arguments sake, one would not suffice. It wouldn't be scaleability. But as discussed, the resources required to target a general LATAM user can be better spent hype focused, at times, to just a single group.

Act fast, be creative and build trust.

If you want to get into the region, there is becoming a golden age in which to do so.

Ciao.