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The Wau Factor. Temp 2 | ep 2 | Payment Gateways: The Silent Engine Driving the New Digital Economy
- WAU Marketing
- Aug 11
- 4 min read
In a world where speed, security, and user experience determine whether you win or lose a customer, payment gateways have become a critical component of the digital economy. They are no longer just a simple bridge between merchants and banks: today, they are the engine driving sales, fostering financial inclusion, and opening the door to global markets.
In Season 2, Episode 2 of The Wau Factor, Juan Carlos Garavito, CEO of WAU, sits down with Juan Diego Coronado, CEO and co-founder of Wiko Labs, to discuss how payment gateways are evolving and what this means for businesses, consumers, and economies in Latin America.
1. What Is a Payment Gateway and Why It Matters More Than Ever
At its simplest, a payment gateway is the technology that connects a merchant with the financial system to authorize and process online transactions.
But behind this definition lies a deeper truth: in today’s digital commerce, the payment moment is decisive. If the process is slow, confusing, or insecure, the customer abandons the cart and the sale is lost.
Key fact: a smooth, frictionless payment experience can increase an ecommerce or digital channel’s conversion rate by up to 30%.
As Coronado puts it:
“A smooth payment experience increases conversion. If it’s slow, confusing, or fails, the customer walks away.”
This makes payment gateways a critical point in the sales funnel, not just as a technical tool but as a business growth lever.
2. From Closed Systems to Open Platforms
In the past 5–10 years, payment gateways have undergone a dramatic transformation:
Before (Closed Solutions) | Now (Open Platforms) |
Limited integrations | Open, scalable APIs |
Local-only support | Global reach |
Generic user experience | UX designed for conversion |
Basic security | Tokenization + PCI DSS compliance |
This shift has enabled businesses to integrate gateways with CRMs, ERPs, mobile apps, wallets, and other digital channels, reducing development time and increasing operational flexibility.
3. Frictionless Security: Tokenization and Global Standards
One of the biggest fears for online shoppers is fraud. Tokenization has been a game-changer:
The actual card number is never stored or transmitted.
It’s replaced with a unique token that can only be used under specific conditions.
It enables recurring purchases without re-entering card details.
This works in combination with PCI DSS standards and features like dynamic CVV, which adds an extra layer of periodic validation.
In markets like Europe, these technologies are already common, and adoption in Latin America is rapidly increasing, driven by the growth of digital commerce.
4. The Challenge of Fragmentation and Interoperability
One of the main obstacles to improving payment experiences is the fragmentation of methods and devices. In many businesses, it’s common to see multiple terminals and different processes depending on the card type or bank.
In Central America, the lack of interoperability between financial institutions is a major barrier to faster adoption of instant payments and open banking. Each bank maintains its own protocols, limiting seamless integration and raising operational costs.
As Garavito explains:
“Until there’s a common standard—likely driven by regulation as in Brazil or Colombia—full interoperability will remain out of reach.”
5. Financial Inclusion: Democratizing Access to Payments
One of the most powerful impacts of payment gateways is their ability to democratize access to electronic payments.
In the past, entrepreneurs needed banking infrastructure, complex contracts, and expensive hardware.
Today, thanks to fintechs and integrated gateways:
An informal business can accept card or wallet payments directly from a chat.
A rural merchant can sell to customers in another city or country.
Ecommerce is no longer reserved for large corporations.
This not only expands the customer base but also formalizes the economy and increases the circulation of money within the financial system.
6. Conversational Commerce: From Chat to Sale in Seconds
Conversational commerce—selling directly through channels like WhatsApp, Instagram, or Facebook Messenger—has grown exponentially.
Integrating the payment gateway directly into the chat means the customer:
Inquires about a product.
Receives information and confirms the purchase.
Gets a secure payment link right inside the conversation.
Completes the transaction without leaving the chat.
Real case: A retailer in Guatemala that integrated payments into its WhatsApp channel surpassed the sales of its main physical store, with a 30% increase in collections thanks to reduced friction.
7. Technologies Shaping the Future of Payments
Coronado identifies three high-impact trends:
Tap to Pay via smartphones: turns any phone into a payment terminal without extra hardware.
Biometrics: fingerprint or facial recognition to validate identity and reduce fraud.
AI for fraud detection: analyzes patterns in real time and adjusts the payment experience based on user behavior.
The combination of these technologies will enable faster, safer, and more personalized payments, preserving conversion rates while minimizing risk.
8. The Traditional Business Dilemma: Invest or Wait?
For many traditional companies, adopting new payment technologies is seen as an expense. However, the opportunity cost of not adopting can be far greater:
Losing customers to faster, more agile competitors.
Maintaining slower, more expensive internal processes.
Struggling to adapt to new sales channels.
Partnering with a specialized provider enables businesses to implement proven solutions, reduce time-to-market, and keep pace with industry changes.
“Building in-house what a partner has already mastered can take months—and cost you opportunities.” — Juan Carlos Garavito
9. Game-Changing Use Cases
Beyond conversational commerce, payment gateways are transforming:
Mass collections: integrating gateways with automated SMS or WhatsApp payment reminders.
Subscription models: tokenization for automatic renewals.
Gig economy payouts: instant payments to independent workers.
In one Rich implementation, recurring payment conversion rates rose dramatically by sending payment reminders with direct gateway links—eliminating unnecessary steps.
10. Beyond the Transaction: Data, Personalization, and Loyalty
The payment moment is not just the end of a transaction; it can also be the start of a deeper relationship with the customer. By integrating gateways with CRM and analytics tools, businesses can:
Understand purchase habits and preferences.
Personalize offers and promotions.
Predict behavior to optimize inventory and logistics.
This turns the payment experience into a strategic source of insights for decision-making.
Conclusion: Payment Gateways as the Engine of the New Digital Economy
Payment gateways have evolved from a technical requirement to a strategic pillar for any business competing in the digital economy.At WAU, we see it every day: speed, security, and interoperability are no longer optional—they are the foundation for growth, inclusion, and customer loyalty.
The future of payments isn’t just faster; it’s smarter, more inclusive, and more customer-focused.The real question isn’t if your business will adopt these technologies, but when—and with whom—you will make the move.
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