​Why Payment Orchestration is a Critical Advantage for Latin American Airlines​

Latin America is an airline market that offers tremendous growth potential amid recovering travel demand, but it also represents one of the most complex markets to enter and serve effectively in terms of payments. Airlines operating in this diverse region must contend with a high volume of cross-border transactions, multiple regulatory environments, and a growing roster of new and traditional payment methods. To master the Latin American payment landscape, airlines must adopt advanced strategies, such as Payment Orchestration, which can accommodate the divergent demands of travelers while mitigating the complexities of regional payment processes.

A Growing and Diversifying Payment Market

The Latin American payment ecosystem is experiencing remarkable growth and diversification, driven by technological advancement and changing consumer preferences. A 2025 J.P. Morgan analysis found that "Latin America is experiencing a transformative shift towards real-time and cross-border payments, significantly enhancing the speed and efficiency of financial transactions in the region." This reflects the region's rapid adoption of digital technologies and the emergence of sophisticated financial infrastructure.

Alternative payment methods (APMs) play an outsized role in the region, demonstrating the unique characteristics of Latin American commerce. E-wallet Mercado Pago has captured an impressive 42% market share in Argentina, while super app Yape is used by 72% of Peru's adult population. These statistics illustrate the preference for digital payment solutions that cater to local market needs and consumer behaviours.

Other APMs are equally important to Latin American commerce, each serving specific market requirements. Brazil's Pix processed an extraordinary $4.61 trillion in transactions in 2024 and recently launched recurring payment capability, demonstrating the platform's evolution from simple transfers to a comprehensive payment infrastructure. Similarly, Colombia’s new – instant payments platform from the Central Bank (Banco de la República) BRE-B, offers fee-free transfers across banks, mobile wallets, and fintech services regardless of the platform or financial institution, recently attracted 13 million sign-ups.  

Strong Travel Demand Increases Cross-border Transaction Volume

Travel continues to rebound both within and to Latin America, creating new opportunities for airlines and increasing the complexity of payment processing. IATA's latest Global Outlook finds that since 2020, Latin American airlines have experienced steady improvement in their financial performance. The region generated a net profit of approximately USD 6.1 billion, achieving an 8.9% net profit margin in 2024, which indicates a healthy recovery from previous challenges.

This recovery is reflected in cross-border payment activity. According to Visa, cross-border transactions in the region increased by 25% compared to the same period last year, highlighting growing confidence in international tourism. This growth presents both opportunities and challenges for airlines, as cross-border transactions typically involve higher processing costs and greater regulatory complexity while still representing essential revenue streams for carriers serving the Latin American market.

What Airlines Need to Succeed in the LatAm Marketplace

The Latin American airline industry has faced considerable turbulence in recent years, but emerging trends suggest a more stable future for carriers that adapt effectively. In the last five years, the three largest locally based airlines in Latin America have all filed for Chapter 11 bankruptcy protection. Encouragingly, all have either exited or are about to exit from the process stronger and ready to compete again, suggesting that lessons learned during restructuring have created more resilient business models.

Market dynamics within Latin America also influence the requirements for payment strategies. In 2025, 59% of all capacity will be operated on domestic services, representing a higher proportion than reported in 1996, when 52% of capacity was operated on such routes. This shift towards domestic focus reflects both market maturity and the importance of serving local passenger needs effectively.

These trends suggest that airlines operating in the region must adopt payment strategies designed to serve the needs of local markets, invest in payment systems that generate efficiency and cost savings, and prioritise revenue generation through modern retailing approaches. Success requires understanding that Latin American travellers often prefer payment methods that differ from those popular in North American or European markets.

Air Europa and CellPoint Digital's Payment Orchestration Platform

The practical benefits of advanced payment orchestration become clear when examining real-world implementations. Air Europa sought exactly these capabilities as it expanded its route network in Central and South America. In a joint presentation at the Airline & Travel Payments Summit LatAm 2025 in Mexico City, the airline highlighted the advantages of CellPoint Digital's Payment Orchestration Platform, created to support its retailing strategy in the region.

The implementation delivered several key benefits that directly address the challenges of the Latin American market. The platform achieved reduced transaction costs, particularly on cross-border transactions, through dynamic routing that automatically selects the most cost-effective payment processor for each transaction. This capability proves especially valuable in a region where cross-border fees can significantly impact profit margins.

The system also facilitated the introduction of local APMs, allowing Air Europa to quickly integrate popular regional payment methods without requiring extensive technical development. Additionally, the platform enabled integration with offer-order-settlement-delivery processes, creating a unified approach to payment handling that supports modern airline retailing requirements.

Winning in the LatAm Market with Payment Orchestration

As we described in our previous assessment of the payment landscape in Latin America, the region remains as dynamic and opportunity-rich as ever. However, to capitalize on those opportunities, airlines need payment solutions and partners that can match this dynamism with flexibility, control, and optimization capabilities.

Payment orchestration represents a strategic approach to managing the complexity that defines Latin American commerce. Rather than attempting to navigate each market's unique requirements independently, airlines can leverage orchestration platforms to create unified payment strategies that accommodate local preferences while maintaining operational efficiency.

The evidence from implementations like Air Europa's demonstrates that payment orchestration can address the core challenges facing airlines in Latin America: high cross-border transaction costs, complex APM integration requirements, and the need for modern retailing capabilities. As the region continues to develop its digital payment infrastructure and travel demand increases, airlines that invest in sophisticated payment orchestration will be best positioned to capture market opportunities while effectively managing operational complexity.

Success in Latin America requires more than simply accepting local payment methods; it demands a comprehensive understanding of how payment strategy can support broader business objectives in one of the world's most dynamic aviation markets.