- Rapid digitalization in Brazil and Mexico is propelling the subscription market.
- Businesses in media, retail, and software sectors are transitioning to subscription models.
- Technological advancements and consumer preferences are key growth drivers.
The subscription economy in Latin America has witnessed transformative growth, especially fueled by the recent digitalization strides in countries like Brazil and Mexico.
Between 2010 and 2024, the subscription model evolved from basic media services to complex digital ecosystems involving various industry sectors. As of 2023, the market size reached USD 20 billion, with projections to nearly double by 2026.
During the early 2010s, Latin America’s subscription services were largely limited to traditional media. The scenario began to shift post-2015, with digital payment solutions and mobile applications becoming more prevalent. By the pandemic years of 2020-2021, not only did these services become normalized but they saw a 30% growth rate, significantly aided by the adoption of digital payments and the introduction of international players enhancing the trust and quality of services.
Looking ahead, the subscription economy’s growth is supported by three major trends:
- increased access to credit cards,
- a shift in consumer preferences towards convenient digital solutions, and
- significant advancements in payment technologies.
The latter is particularly pivotal, enabling local companies to introduce innovative subscription models beyond traditional sectors, including healthcare and professional services. The transition to a more digital and service-based economy, where subscriptions play a critical role, suggests a promising future for this business model in the region.
For more detailed insights, visit the full report by Stripe and PCMI here.
