dLocal the long-run partner of Ripple has announced its plan to collaborate with the streaming heavyweight Spotify. Spotify’s plans to increase the base of premium subscribers in Latin America will benefit from such a collaboration giving it the necessary boost in the unexplored Latin American markets. The region’s full potential has not been realized by the streaming company and that is why dLocal will help them.
dLocal’s Alejandro Esperanza claims that
“Success hinges on the ability to understand each market and how their consumers prefer to pay for the goods and services they enjoy. This partnership underscores our commitment to helping the world’s biggest companies, like Spotify, realize the full potential these markets offer.”
The Latin American market although fully unexplored also is Spotify’s fastest-growing market in terms of unpaid users. The proportion of users in the unpaid music category stood at 21%. But it is now looking at expanding its paid premium services and increasing its subscription base.
The challenge however remains 70% of the population in Latin America that remains unbanked which is what is making it hard for Spotify to increase its premium pay subscriptions and difficult for Spotify customers to opt for premium services. In order to counter the problem, it has joined hands with dLocal to make a difference now that Spotify has also allowed support for its 360 payment platform. dLocal will help Spotify process cash payments for those who are not able to open bank accounts or our unbanked in Latin America.
We are aware that the Latin American continent is a repository of opportunities, especially for the financial sector. It is a golden haven for neobanks and financial technology start-ups that are willing to set up operations here to test waters.
dLocal was initiated with a goal to close the payment innovation gaps that exist between developed countries and developing nations. The organization is a 40% cross-border payment facilitator, 40% a technology company, and 40% emerging markets localization experts. They are dedicated to delivering scalable and all-inclusive payments solutions that will unravel new revenue opportunities and maximize reach and growth in new markets. It joined the Ripple network in October 2017 to enable blockchain-powered payments available to network members in the South American subsidy of dLocal.
The new collaboration will offer alternatives that will enable easy access and improvise the payment experience of Spotify Premium. It will leverage dLocal’s 360 payment platform, which will enormously reduce the friction from the checkout experience through online bank transfers and cash payments through online vouchers. This will allow users regardless of their banking level to enjoy the benefits of the premium account.
Ripple Network over the years have been making rapid strides in Latin America. Last year in October, it invested in Bitso which is Mexico’s largest crypto exchange. Brazil also appears to be on its map of priority. According to some reports it already had a hush-hush meeting with Brazil’s Central Bank head Robert Campos Neo after it announced its inclination to partner with local banks.