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    Brazil ahead of the US? Digital engagement could be a gateway for Brazilian brands into the North American market

    While the United States still struggles with fragmented communication platforms, Brazil stands out for its creative and integrated adoption of WhatsApp. Brazilian companies are well ahead of the curve in digital engagement, and this gives us a strategic advantage to compete and expand in the U.S. market by leveraging our dominance of messaging platforms, especially WhatsApp.

    In Brazil, WhatsApp has been uniquely adapted. With this expertise, we have a real opportunity for global growth. I learned in graduate school that there are two main ways to grow a business: by offering new products or by entering new markets. And Brazil is exceptionally well positioned to do the latter.

    Brazil’s digital ecosystem: omnipresent and advanced

    According toStatesman, 93.4% of internet users in Brazil use WhatsApp, it goes far beyond a simple messaging tool — it is part of everyday life. From organizing a barbecue to opening a bank account, WhatsApp is essential for personal and professional communication. For small and medium-sized businesses, it works as a CRM, marketing tool and even an e-commerce platform.

    In the financial sector, banks such as Banco do Brasil and Bradesco allow balance inquiries, transfers and even debt renegotiation via WhatsApp. In 2023, the Central Bank authorized payments via WhatsApp, allowing users to pay for products and services directly in the chat, using Visa and Mastercard cards.

    Every industry in Brazil has followed suit, using WhatsApp to interact instantly and efficiently with their customers. Here, we are accustomed to fast responses, whether from humans or machines. For us Brazilians, WhatsApp is the heart of our digital ecosystem.

    The New Rules of Engagement: How Megatrends Are Transforming Digital Experiences

    Global trends are changing the way customers interact with brands. Companies are increasingly investing in direct communication channels to collect first-party data, as privacy and third-party cookie elimination are making it harder to reach potential customers.

    DataRecent data indicate that 22% of mobile internet users in the United States use ad blockers, while in Brazil only 16% have this tool. This shows that consumer choice over when and where to engage with brands is increasing.

    Additionally, customers increasingly expect faster, more personalized responses. Interestingly, research suggests that many consumers prefer the speed of a chatbot to time-consuming human interactions. In the US,secondTwilio 89% of consumers already prefer to communicate via messaging. While in Brazil conversational commerce is already a reality, in the US it is still in its growth phase.

    In the past decade, every company wanted to create its own apps. Today, the priority is to ensure a presence on customers’ WhatsApp. While American companies have yet to realize this, we have already learned that customer loyalty does not depend on an app, but rather on offering fast and relevant messages on the channels they already use.

    Surprise! Most Americans can use RCS – but they don’t even know what it is!

    Brazilian companies have a unique opportunity in the United States, as we have mastered the art of creating exceptional experiences with Rich Communication Services (RCS). While WhatsApp already has more than100 millionof monthly active users in the country, it does not yet lead the market. RCS, on the other hand, has been consolidating. Currently, most smartphones sold in the United States, both Android and iOS, are compatible with RCS, as long as they are updated and operate with carriers that support this technology.

    Android accounts for about 46% of the smartphone market in the US, according to data fromCanalys, and the vast majority of modern Android devices have supported RCS since 2017. The iPhone, which dominates 54% of the market, incorporated RCS in iOS 18, released in September 2024. With that, virtually every American with a cell phone now has access to RCS.

    But why is this happening now? Although RCS was developed in 2007, its adoption has been slow, mainly due to fragmentation among carriers and resistance from Apple. This began to change when Google standardized the service, and Apple finally bowed to market pressure in 2024. In addition, antitrust investigations in both the US and Europe have helped accelerate RCS adoption by promoting cross-platform compatibility.

    Technological leaps and success stories in Brazil

    Brazil’s dominance in digital platforms is not limited to WhatsApp. Pix, launched by the Central Bank, has revolutionized instant payments and surpassed American alternatives in speed, accessibility and scope. While Pix is free and universal, American systems are still fragmented and often charge fees.

    In my work, both in Brazil and the US, I still see American companies sending checks in the mail every month. The Brazilian digital ecosystem for payments in restaurants and B2B companies is three to five years ahead of the American one.

    The Brazilian Paradox of Innovation

    Despite progress in some areas, Brazil also has its challenges. E-commerce, for example, was slow to gain traction due to logistical difficulties and limited internet infrastructure in the past. It was only when the government realized that it could boost adoption with initiatives like Pix that the scenario began to change rapidly.

    Streaming services such as Globoplay and Netflix have faced similar barriers to reaching Brazilian audiences. However, Brazilians’ creativity and adaptability have helped them overcome these difficulties, often resulting in more innovative solutions.

    Global Communication Platforms: A Comparison

    WhatsApp's penetration rate in Brazil, at 93.4%, surpasses that of any other similar platform in the world. In China, WeChat has around 80% penetration, according to data fromStatesman, and works as a complete ecosystem for communication and payments. In Australia, asurveyfrom Hootsuite and We Are Social reveals that Facebook Messenger dominates with 83% adoption. However, in Brazil, the centralization on WhatsApp has created a highly efficient and connected digital environment.

    The Rich Communications Service (RCS) Solutions Dominating Global Markets: A Visual Analysis of Regional Preferences

    With RCS taking off in the US, Brazilian companies have a unique opportunity to apply their expertise to a growing market. This movement not only drives global innovation, but also strengthens our position as a leader in digital engagement. The future of corporate communications will be shaped by those who are able to take advantage of this transition and deliver experiences that meet new consumer expectations.

    Paul Lima
    Paul Lima
    Paul Lima helps visionaries create the customer experiences of the future. He is the founder of Lima Consulting Group and a veteran of the U.S. Army, where he helped establish cyber warfare capabilities. A West Point graduate with masters from the University of Pennsylvania and Wharton, he is a multilingual speaker and hosts the podcast "The Visionary's Guide to the Digital Future."
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