How personalization fuels success in Latin America’s digital boom

• Driven by rapid adoption of e-commerce and online banking, Latin America has seen material growth in digital transactions, with e-commerce shoppers expected to increase significantly in the coming years.

• Mobile devices are the primary access point for online shopping and banking in the region, highlighting the importance of optimizing mobile-friendly experiences for further growth.

• Brands can drive higher engagement and sales through personalized strategies like free shipping thresholds and geotargeted offers, catering to consumer priorities like quick delivery.

As a personalization expert who has worked in Europe, North America and elsewhere, I’m seeing an exciting glimmer among global stories of economic transformation.

That glimmer lies in Latin America, where rapid economic digitization is changing the way everyday people live their daily lives — from shopping for groceries to simple things like opening a bank account. 

E-commerce players across Latin America are now riding this wave of material growth. And as digital transactions surge and outside investments multiply, this much is clear: Those that invest in personalization and mobile-friendly experiences now will be in a better position to thrive in this evolving landscape.

Here’s why I think global players should pay attention to Latin American players jumping into the fray — and what these companies can do to kickstart their personalization growth.

As early as 2021, Latin America’s digital economy lagged. The problems were manifold: Low banking penetration, inadequate infrastructure and a lack of consumer trust prevented widespread e-commerce adoption.¹ But consumer spending trends began to shift from cash-only transactions to online payments. In 2024, account ownership at financial institutions and mobile money service providers surpassed 80% in several countries across the region, according to a study conducted by Mastercard and Payments and Commerce Market Intelligence (PCMI). Since then, Latin America has been consistently ranked among the fastest growing regions when it comes to financial inclusion.² To further support this rapid growth, logistics companies have heavily invested in their storage and delivery capabilities, expanding their last-mile solutions to handle the influx of cross-border packages purchased online. E-commerce transaction volume in the region is on track to surpass $760b USD in 2026.³ Something important to keep in mind with this growing ecosystem is the crucial role mobile devices play. Many households in the region do not own computers, making smartphones the primary gateway for online shopping and banking. According to Payments and Commerce Market Intelligence (PCMI) research commissioned by Mastercard, 88% of account owners say they use their phones for financial transactions.

As Latin American’s digital economy flourishes, companies are taking the next transformative step: Personalizing the customer experience. According to a study by MIT SMR, almost 50% of Latin American retailers use CX technology to personalize their offers and messages, followed by 40% in the financial services sector.⁴ 

Latin American shoppers are now coming to expect these tailored experiences. To meet expectations, companies from various industries are investing in personalization technology — more than 80% of grocery retailers have made personalization a top priority, for instance. As many banking-as-a-service players enter the field, Latin American banks have started to differentiate themselves from the pack: In a Forrester survey commissioned by Mastercard Dynamic Yield,  73% of issuer banks and 82% of acquirer banks say they’re planning or actively investing in and scaling their personalization program.

I urge brands to think critically about how they can use personalization to address the region’s consumer needs knowing its story. Think delivery speed, accurate product descriptions and an efficient returns process.

One way to streamline the shipping process is to make use of personalization strategies, such as dynamic content banners, to test free shipping thresholds. It’s a win for your customers, who feel that they’re getting a great deal, and for brands, as they can often increase average order value (AOV) without losing customers.

These shipping thresholds can also be adjusted based on geotargeting. For instance, brands can offer lower shipping costs to customers who are within a certain distance from a shipping center. This enables them to drive up order value and incentivizes local customers (who are more likely to receive their items promptly) to make a final purchase. Benefits like these enable local players to outcompete global drop shipping players, who have a significant presence in Latin America due to their price point but are dogged by sluggish shipping timelines and limited return policies.

While the enthusiasm for personalization in Latin America is distinct to the region, the care needed to launch a pioneering program is decidedly global. To achieve success, we’ve found that brands — regardless of industry, region or size — need to follow a similar set-up in installing the right people, team organization, strategy and processes. We’ve compiled these insights into our Personalization Maturity model and assessment, which anyone can use to gauge where their team and company stands and find insights into strengths and areas for improvements. 

The explosive growth of Latin America’s digital economy presents a pivotal moment for businesses to embrace personalization as a key strategy. If global players prioritize hyper-personalized and mobile-friendly interactions now, they can meet rising consumer expectations, secure their place in a flourishing market and truly capitalize on this exciting evolution.