FT Start-Up Stories A payment solution for Latin America
Sep 11, 2017
Philipp Bock, founder of Alpago, seeks to revolutionize cross-border payments in Latin America. He reflects on his journey from Brazil to Berlin, and how early career experiences shaped his vision. The need for a localized payments infrastructure became evident during a merchant roadshow. Philipp details Alpago's unique two-layer strategy and the challenges of securing their first big client, McAfee. He emphasizes the power of local partnerships and cultural understanding, sharing transformative moments and valuable advice for aspiring founders.
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Spun Out From Corporate Project
- Philipp Bock spun Alpago out after his employer stopped a Brazil e-commerce project and ran a roadshow to learn merchants' needs.
- He discovered global merchants were blocked because only ~30% of Latin Americans had international credit cards.
Local Payment Gaps Block Growth
- Only about 30% of Latin American e-commerce consumers have Visa/MasterCard/Amex, blocking cross-border sales in dollars or euros.
- Local markets are isolated, so global merchants need a localized payments infrastructure to scale.
Integrate Directly With Banks
- Build both access (bank/acquirer integrations) and technology to offer relevant local payment methods directly.
- Direct partnerships with banks lower costs and unlock features that wallet redirects cannot provide.