Unlocking Growth in LATAM: A Merchant of Record Guide for Game and App Publishers

Latin America (LATAM) is a fast-growing opportunity for game and app publishers—projected to reach $16 billion by 2030. With over 619 million people and rising smartphone adoption, the region is leading a mobile-first gaming wave.

But growth comes with complexity. With growth comes regulatory complexity, currency controls, and some of the highest fraud rates in the world.

That’s why more publishers are turning to the Merchant of Record (MoR) model. By managing tax, payments, fraud, and compliance, MoRs like Coda remove the operational roadblocks—so publishers can scale faster, without building local teams or navigating the red tape alone.

Why LATAM Is Full of Potential—And Complexity

LATAM has over 619 million people, and mobile-first gaming is taking off. 

Brazil, Mexico, Argentina, Colombia, and Chile are among the most promising markets—monthly game spend in Mexico, Brazil, and Chile alone grew by 50% during the Covid period.

Unfortunately, there’s no one-size-fits-all approach to reach them all. Each country has different tax laws, consumer payment habits, and infrastructure that call for a localized approach.

That’s where the Merchant of Record (MoR) model comes in. Instead of building local entities or hiring regional teams, publishers can partner with an MoR to manage operations—so they stay focused on gameplay and growth.

What a Merchant of Record Does—and Why It’s Essential in LATAM

A Merchant of Record (MoR) is the official seller of your digital content. It takes on the operational and legal responsibilities so your team doesn’t have to—including:

• Handling payments
• Calculating and remitting tax
• Managing fraud and disputes
• Providing customer support

With an MoR, your team stays focused—no need to manage tax, compliance, or local operations. You get the benefits of a localized presence, without the complexity.

But when publishers go at it alone, the hidden costs quickly add up. Here’s what that looks like.

DIY payments start slowing you down:

Going solo on payments in LATAM may feel like control, but it comes at a cost. Local payment stacks mean juggling vendors, lawyers, and tax consultants. In Brazil, for example, publishers must navigate electronic invoicing (NF-e) and local taxes like ISS—on top of managing multiple vendors, legal advisors, and tax consultants.

Higher total cost of ownership:

Building your own payment stack in LATAM means managing multiple vendor contracts, legal fees, compliance audits, and support teams. With third-party integrations, tax advisors, and local legal services in the mix, costs often exceed initial projections—and continue to climb.

Opportunity cost:

Every hour spent on payment logistics—FX issues, failed transactions, tax filings—is time not spent on product, content updates, or marketing. The more resources tied up in logistics, the slower your team can move.

Operational complexity & compliance risks:

Regulations in LATAM vary widely by country—and staying compliant takes constant effort. From Mexico’s SAT 16% VAT requirement to Colombia’s DIAN filings, staying compliant is a full-time job. Missing a step can mean penalties, delayed payouts, or even service disruptions.

Dev resource drain:

Adding support for local payment methods like PIX, OXXO, and PSE requires ongoing work and updates.

➡️ Bottom line:

Let an MoR take the burden–so your team can stay focused on game creation and scaling. 

Here’s How a Merchant of Record Can Power Your LATAM and Global Growth

LATAM is now one of the fastest-growing digital gaming regions, but each country brings its own rules, payment preferences, and infrastructure. That’s where the real value of the MoR model comes in: as your end-to-end partner, it helps you simplify transactions, ensure compliance, and scale without friction, so you can focus on the fun part–building great games.

The Merchant of Record (MoR) model goes beyond payment processing—it’s a strategic enabler for safe, scalable global expansion, especially in complex, high-potential regions like Latin America.

LATAM has become a digital commerce powerhouse—driven by mobile gaming and rising player demand. But each market brings its own payment systems, consumer behaviors, and regulatory requirements, making expansion complex without the right support.

The right MoR doesn’t just simplify operations—it removes barriers and drives revenue. By unlocking preferred payment methods, enabling faster market entry, and removing friction from checkout to payout, an MoR helps you reach more players and convert them faster—across LATAM and beyond.

Where Game and App Publishers Struggle

Expanding in LATAM means navigating some serious challenges:

LATAM’s Patchwork of Regulations

Every LATAM market has its own tax systems, fintech regulations, and licensing rules. From Mexico’s SAT to Brazil’s SEFAZ and Argentina’s shifting FX policies, staying compliant requires local expertise—not a one-size-fits-all approach.

Payment Diversity

LATAM players pay differently—and expect flexibility with alternative payment methods (APMs). Players prefer PIX in Brazil, OXXO in Mexico, PSE in Colombia, and Mercado Pago across multiple markets. Supporting these methods requires deep integration and real-time performance monitoring.

Currency and FX Hurdles

Volatile exchange rates and capital controls—especially in markets like Argentina and Venezuela—can make USD repatriation complex. Without smart FX handling, publishers risk delayed payouts or trapped earnings.

High Fraud Rates

Digital fraud is rising fast—up 65% in Brazil alone in 2023. Card testing, identity spoofing, and chargebacks are common. Publishers need real-time, AI-powered detection to safeguard revenue and user trust.

Growth Levers: Smart Monetization Starts with an MoR

A Merchant of Record does more than process payments. It enables strategic expansion by removing technical, legal, and financial roadblocks.

Localized Monetization

MoRs like Coda offer access to 400+ global payment methods—including LATAM-specific APMs—ensuring players can pay how they prefer. This boosts conversions and reduces drop-offs.

Compliance as a Service

From VAT to DST and invoice formatting, an MoR automates tax remittance and ensures up-to-date compliance across all LATAM markets.

Fraud Mitigation at Scale

MoRs deploy real-time monitoring and adaptive scoring to reduce chargebacks and false declines, protecting both revenue and player experience.

Subscription and Web Store Enablement

MoRs support D2C strategies—helping publishers launch web stores, offer subscriptions, and bypass up to 30% in app store fees. This allows greater control over customer relationships and margins.

Case Snapshot: Accelerated LATAM Expansion with Seamless MoR Support

A leading global publisher successfully entered multiple LATAM markets by launching a Direct-to-Consumer (D2C) web store via Coda’s Custom Commerce solution, leveraging built-in Merchant of Record (MoR) capabilities. This allowed them to operate at scale without establishing any local legal entities or offices.

The impact was substantial:

• Within 90 days: D2C accounted for a 14.5% revenue uplift post-launch
• Within one year: D2C share of revenue grew to 30%
• Today: D2C consistently contributes 40–50% of revenue, on strategic markets for the publisher

Even more notably, D2C transactions deliver up to 5x the profit margin compared to in-app purchases, transforming the publisher’s LATAM revenue mix into a significantly more profitable model.

This success was made possible by Coda’s compliance-ready infrastructure and regulatory expertise, ensuring frictionless deployment across priority markets—including Mexico and Brazil—while minimizing operational overhead.

What to Look for in a LATAM MoR Partner

Clear the Path to Growth in LATAM

Latin America offers enormous upside—but also regulatory, financial, and operational hurdles. A Merchant of Record sets it straight by managing payments, compliance, fraud, and FX—all while improving conversions and unlocking new revenue.

Move quickly, convert more, and scale globally—your MoR makes it possible.

Final Thoughts: Turning LATAM’s Complexity into a Growth Edge

LATAM offers huge potential—but unlocking it takes more than ambition. You need the right infrastructure, local know-how, and a partner who can handle the details.

A Merchant of Record isn’t just a backend solution. It’s a strategic growth enabler for revenue—one that helps you launch quickly, stay compliant, and monetize where it matters.

When you treat complexity as a constraint, growth slows. With the right MoR, it becomes your advantage. 

If you’re ready to go, we’re ready to grow. Explore how to scale faster in LATAM with this in-depth guide → Unlock Latin America’s payment potential.