In 2020, Shanxiang Qi and Mengke Li, renowned figures in companies like Uber and Didi, identified and sought to address one of the most common problems that permeate financial transactions in Latin America: fragmentation in existing payment methods. Inspired by the success of Asian platforms such as WePay and WeChat, both entrepreneurs created Liquido with a clear mission: to unify and simplify payment methods, offering integrated solutions on popular platforms like WhatsApp.
This is explained by Juan Vahos, Head of LATAM at Liquido, exclusively for Contxto:
“When trying to find a single payment service provider, they realized that there were no robust solutions that offered these services in a unified way in the region. They were forced to develop multiple integrations, negotiate with various providers, and reach local agreements that hindered the scalability of their solution.”
In addition to this scenario, according to the Latin America Banking Outlook by Country Second Half of 2023 prepared by S&P Morgan, “Defaults by some independent non-bank financial institutions in the collapse of certain regional banks in the United States and the rescue of Credit Suisse shook confidence, but contagion risks have moderated.”" data-image-caption="
Análisis de riesgo de la industria bancaria por país. (Fuente: S&P Global)" data-medium-file="https://i0.wp.com/contxto.com/wp-content/uploads/2023/10/Captura-de-pantalla-2023-10-11-a-las-12.24.04.png?fit=300%2C270&ssl=1" data-large-file="https://i0.wp.com/contxto.com/wp-content/uploads/2023/10/Captura-de-pantalla-2023-10-11-a-las-12.24.04.png?fit=1024%2C921&ssl=1" decoding="async" >
In contrast, after the repercussions of the pandemic and the collaboration between banks and fintech, cash ceased to be the primary means of payment in the formal economy, decreasing by a significant 36% in a region where cash has historically predominated due to mostly informal economies, as highlighted by Payments and Commerce Market Intelligence and Kushki.
Technology with Liquidity
“Liquido is not a common payment platform,” emphasizes Vahos. “It is designed with the highest technology to serve digitally operating businesses of all scales.” Whether it’s a small tech startup or a large corporation, if they operate on a digital platform and require electronic payment management, Liquido offers a solution. It has a robust integration with leading e-commerce platforms like Shopify, VTEX, and Magento and offers highly competitive payment proposals.
“Our clients can be small emerging businesses as well as medium and large corporations, as long as they have a presence on digital platforms and seek an efficient solution for their online payment needs,” explains Vahos.
In Latin America, consumers have various payment options, from advanced electronic transactions and contactless operations to simple payment links and P2P apps. 2023 will be characterized by consolidating the most optimized payment experiences and payment systems that will be molded according to specific needs. With cash on the decline, the trend toward digital payment methods will continue to rise due to their shared benefits, as highlighted by the Payments and Commerce Market Intelligence and Kushki study." data-image-caption="
Espectro de interoperabilidad de
los sistemas de pago en América Latina. (Fuente: Payments and Commerce Market Intelligence y Kushki).
The value proposition of Liquido is not limited to being a unified payment method. What sets it apart from the competition is its unified API that eliminates the need for multiple integrations, allowing for rapid regional expansion. Additionally, its ability to offer customized solutions and 24/7 customer service positions it as a leader in the industry. At the same time, its integration with WhatsApp allows e-commerce businesses to improve their conversion rates and offer an additional automated sales channel." data-image-caption="
Rendimiento de Pix 2020-2022. (Fuente: Payments and Commerce Market Intelligence y Kushki)." data-medium-file="https://i0.wp.com/contxto.com/wp-content/uploads/2023/10/Captura-de-pantalla-2023-10-11-a-las-12.32.17.png?fit=300%2C150&ssl=1" data-large-file="https://i0.wp.com/contxto.com/wp-content/uploads/2023/10/Captura-de-pantalla-2023-10-11-a-las-12.32.17.png?fit=1024%2C513&ssl=1" loading="lazy" decoding="async" >
According to Juan Vahos:
“Our focus is on accompanying the customer through all stages of the process, from the first sales inquiry to after-sales service, with the aim of ensuring that the customer experience is as simple and satisfactory as possible.”
The philosophy of Liquido is based on understanding the needs and challenges of its customers, addressing them in a timely manner, and maintaining constant communication. In this way, they encourage feedback from their customers, encouraging them to evaluate their services so they can implement continuous improvements.
A Future Flowing Like a River
The horizon for Liquido is promising. With geographical expansion plans that include countries like Peru, Ecuador, Costa Rica, and Panama, they aim to cover all of Latin America by 2024. Furthermore, by connecting with various players in the financial industry and enabling innovative features on platforms like WhatsApp, they are prepared to lead the payment transformation in the region.
With an investment backed by more than USD $26 million from prominent funds such as Index Ventures and Base Partners, Liquido is well-positioned to continue its mission and vision. Recognizing that their most significant asset lies in people and their innovative technology, they seek to forge strategic alliances and remain open to collaborations with complementary startups.
Liquido is not just a solution for payments in Latin America; it aims to become the future of payments in the region. Its vision, innovation, and commitment to excellence uniquely position it to lead and transform the financial industry in Latin America in the coming years. “Our vision is to consolidate Liquido as the leading platform in the payment market, providing cutting-edge solutions and exceeding our customers’ expectations,” concludes Vahos.