DUBLIN, May 19, 2022 /PRNewswire/ -- The "Latin America Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Loyalty Programs Market in Latin America is expected to grow by 13.5% on annual basis to reach US$ 6652.7 million in 2022
In value terms, the Loyalty Programs Market in Latin America has recorded a CAGR of 13.8% during 2017-2021. The Loyalty Programs Market in Latin America will continue to grow over the forecast period and is expected to record a CAGR of 13.2% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 5859.8 million in 2021 to reach US$ 10923.8 million by 2026.
The Latin American loyalty and rewards market recorded significant growth despite economic challenges in the last two to three years. Demand for rewards programs increased considerably in countries such as Brazil, Mexico, and Argentina during the pandemic period. This was primarily due to with rapid digitalization of the payment systems; many fintech start-ups launched their loyalty and rewards programs to expand their target market. Moreover, growing online retailing also created awareness and demand for these products in the region.
The loyalty and rewards programs market is majorly driven by mass merchants and international brands in Brazil, with local business loyalty programs being a rarity in the country. However, as the demand among consumers for local business loyalty programs continues to rise, the publisher expects more and more local businesses to invest in developing and launching loyalty programs over the next two to three years in Brazil.
According to the Q1 2022 Loyalty and Rewards Market Survey, credit card firms have the majority of the market share in the Brazilian loyalty and rewards program industry, with nearly 60% of the consumers being enrolled in loyalty programs offered by credit card firms.
Apart from the credit card firms, banks and mass merchants also have a substantial share with nearly 40% and 32%, respectively. This is followed by online-only stores and airline programs. In contrast, around 15% of the consumers are enrolled in loyalty programs offered by local retail stores in Brazil.
Brazilian fintech companies are targeting bridge millennials to expand their business in the country
With the rising income level among bridge millennials (population between 32 and 41 years), spending behavior is also changing in the country. The publisher expects consumers of this demographics to make for the perfect target market for small and medium-sized merchants seeking to launch their loyalty and rewards programs in the country.
The publisher in its recent survey, found that the Brazilian bridge millennials have a better spending power compared to other consumer demographics. This makes bridge millennials a more powerful consumer segment for small and medium-sized businesses who are considering designing their loyalty programs and attracting higher spending power consumer groups to boost their growth and revenue.
Loyalty program firms are launching initial public offerings to raise funding and boost their growth in Brazil
Over the next two years, the loyalty and rewards programs market is expected to grow significantly in Brazil. Consequently, to tap into this growing loyalty and rewards programs market, firms are taking the route of the initial public offering to raise funds to accelerate their growth in the country from the short to medium-term perspective.
- Dotz, one of the leading loyalty program firms in Brazil, launched its initial public offering of nearly 815 million reais or US$146 million. As of April 2021, the company had more than 20 million active users in the country. According to the company, the fund will be used for its expansion in the Brazilian market.
In Mexico, some of the most successful customer loyalty and rewards programs are engaging and retaining customers by creating an emotional connection to the brand while making participation in the program effortless. Over the last three to four years, the strategy of offering loyalty and rewards programs seems to be paying off for brands and businesses as they continue to compete with declining foot traffic and profit margins in the country.
With the growing traction towards loyalty and rewards programs among consumers in Mexico, an increasing number of businesses are planning to invest more in their customer loyalty programs. According to the Global Loyalty and Rewards Market Survey, around 65.5% of the businesses were planning to invest more in their customer loyalty program. Moreover, many businesses were willing to spend substantial amount on loyalty technologies compared to the previous year.
Regional loyalty program providers are seeking to expand their footprint in Mexico
As the loyalty and rewards programs industry continues to mature and grow in Mexico, regional and global providers are seeking to expand their footprint in the country to gain a market share for themselves.
- In April 2022, Leal, the Colombian start-up that offers loyalty programs in the Latin American region, announced that the firm had raised US$10 million in its Series A funding round, which the firm is planning to use for launching its operations in Mexico. With the newly infused capital, the firm is planning to forge alliances with more than 1,000 retailers and onboard 3 million consumers by the end of 2022.
- Notably, the firm is targeting retailers who are looking to better understand their customers through consumer data analysis technology. Through an API, Leal connects to billing and point of sale payment terminals, thereby capturing important consumption habits and other data. This is then converted into analytics and business intelligence, helping retailers increase their business growth.
Loyalty program providers are entering into strategic partnerships with digital payment firms in Mexico
Over the last three to four years, the adoption of digital payment services has surged significantly among consumers in Mexico. In the midst of this growing adoption of digital payment products, loyalty program providers are targeting digital payment firms to further boost their growth in the country.
- In August 2021, PAYBACK, one of the leading customer loyalty program providers in Mexico, announced that the firm had entered into a strategic partnership with i2c, the leading digital payment, and banking technology firm, and KEO, an innovative lending company.
- Under the partnership, the firms are launching a KEO PAYBACK American Express Card. Notably, the card is aimed at boosting consumer credit availability in Mexico, which will subsequently help in increasing financial inclusion. Apart from offering credit access, PAYBACK will also provide Mexican consumers with robust loyalty benefits when they use the KEO PAYBACK American Express Card.
The publisher expects more loyalty program providers to enter into strategic partnerships with digital payment firms over the next four to eight quarters. This is expected to further boost the financial inclusion rate in the country from the short to medium-term perspective while supporting the growth of the loyalty and rewards programs market in Mexico.
Scope
- Latin America Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Argentina Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Brazil Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Colombia Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
- Mexico Loyalty Programs Market Intelligence and Future Growth Dynamics (Databook)
Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
- Point-based Loyalty Program
- Tiered Loyalty Program
- Subscription Loyalty Program
- Perks Loyalty Program
- Coalition Loyalty Program
- Hybrid Loyalty Program
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
- In-Store
- Online
- Mobile
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
- Retail
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Telecoms
- Media & Entertainment
- Others
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
- Other
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
- Software
- Services
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
For more information about this report visit https://www.researchandmarkets.com/r/wf03t3
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