Spotify taps dLocal for new payment alternatives in Latin America

By Pavithra R

Uruguay based dLocal, a FinTech company providing 360 payments technology platform for emerging markets, announced that it is implementing new payment methods on the payment platform of Spotify for Spotify Premium customers in Latin America.

Spotify, through the development of alternative payment options, is increasing its accessibility in the Latin American market, where 63% of the population is unbanked, and more than 90% do not have a credit card, according to figures from dLocal market research. The firm has selected dLocal as a technological partner because of its expertise in payments in each country where Spotify is present. dLocal offers alternatives that make it easier to access and enhance the Spotify Premium payment experience.

By leveraging dLocal’s 360 payment platform, Spotify is reducing the friction associated with the online bank transfer and cash payment experience through online codes (vouchers), enabling users of all backgrounds to banking level to benefit from all the advantages of Spotify Premium.

“It is an honor to work with Spotify to expand access to Spotify Premium to consumers across Latin America. In Latin America, each country has its own distinct identity, and consumers who participate in the economy in different ways. Success depends on the perception of each market and how consumers prefer to pay for the goods and services they receive. This partnership underscores our commitment to helping the world’s largest companies, like Spotify, realize the full potential of these markets,” said Alejandro Esperanza, Vice President and Account Manager at dLocal.

Spotify Premium users wishing to pay for their individual plan in cash can do so using Rapipago or Pagofacil points in Argentina, Baloto, or Efecty in Colombia, OxxoPay in Mexico, Servipag in Chile, and Pago Efectivo in Peru. Besides, users who do not wish to subscribe to Spotify Premium can choose the prepaid payment method, which allows them to pay for 1, 3, 6, or 12-month plans in cash or by wire transfer. Spotify has also enabled bank transfer with WebPay in Chile and PSE in Colombia, which uses dLocal’s Payins solution.

Founded in 2016, dLocal is a 360 payments technology platform designed to handle mass online payments in emerging markets. It helps in eliminating cross-border payment complexities and minimizing operational costs. The company recently unveiled Merchant Dashboard to help clients optimize business outcomes.