How Personalization Fuels Success in Latin America's Digital Boom
2026-02-28 18:51 Diff
https://www.dynamicyield.com/article/personalization-growth-latin-america/

Summarize this articleHere’s what you need to know:

  • Driven by rapid adoption of eCommerce and online banking, Latin America has seen exponential growth in digital transactions, with eCommerce consumers expected to rise 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.

Welcome to our new column Dynamic Voices, a regular series on XP² featuring timely perspectives on personalization, from thought leaders within our network. In this edition, Customer Success Manager Karin LaHalle, who works with leading brands in LAC, explains how global players can leverage personalization to capitalize on Latin America’s flourishing digital economy.

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

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.

eCommerce players across Latin America are now riding this wave of exponential 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 an excellent 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.

Rapid Growth, Real Business Potential

At the onset of the pandemic, Latin America’s digital economy lagged. The problems were manifold: Low banking penetration, inadequate infrastructure, and a lack of consumer trust prevented widespread eCommerce adoption. But shifting consumer behavior—driven by shuttered brick-and-mortar stores and lockdown orders—began to drive a full-scale digital transformation. The numbers don’t lie: Over 40 million unbanked individuals gained access to banking services in 2020, enabling them to transition from cash-only transactions to online payments. And, according to AMI, an estimated 50 million new users were poised to make their first online purchases in 2020 alone, marking a significant milestone in the region’s digital economy. Since then, Latin America has been consistently ranked among the fastest growing regions when it comes to financial inclusion.

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. The number of transactions in the region has more than tripled from $117 million in 2019 to $364 million in 2023 alone. But the growth doesn’t stop there: Statista forecasts that eCommerce users in the region will reach 290 million in 2024—a figure projected to increase by 52% to approximately 419 million users by 2029. By 2030, the market is expected to exceed $7.5 trillion in value.

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. In fact, mobile devices accounted for 60% of all eCommerce sales in 2021. Yet there’s still room for greater adoption—as of 2023, 65% of Latin Americans are accessing the internet via their mobile phones, meaning the region’s players still can foster further growth by providing better mobile experiences.

The Rise of Personalization in Latin America

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.

Latin American consumers are now coming to expect these tailored experiences. For example, more than 70% of grocery customers specifically say they’re willing to exchange personal data for personalized offers or discounts.

To meet these expectations, companies from various industries are investing in personalization technology. McKinsey finds nearly all grocery retailers in Latin America are either maintaining or boosting their personalization budgets, recognizing personalization as an essential tool in fostering brand loyalty. And more than 3/4 of grocery retailers believe that personalization should be a higher priority in general. 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 Dynamic Yield by Mastercard, 73% of issuer banks and 82% of acquirer banks say they’re planning or actively investing in and scaling their personalization program.

Quick and Meaningful Wins

I urge brands to think critically about how they can use personalization to address the region’s consumer needs knowing its story. For example, a study by Wunderman Thompson found that delivery speed ranks as a top priority for online shoppers in Latin America, alongside accurate product descriptions and an efficient returns process.

A popup that offers free local shipping once a threshold cart value has been reached for regional customers.

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 consumers, who feel that they’re getting a great deal, and for brands, as they can often increase AOV without losing customers.

A mobile banner that offers free shipping with two price point variations.

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 dropshipping 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.

Future Outlook of Latin America’s Digital Economy 

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.