Regional Spotlight: POS Modernization in Latin American Retail—Challenges and Opportunities

Navigating the Unique Retail Landscape of Latin America

Latin America’s retail sector is in the midst of a digital revolution. As consumer expectations shift and digital adoption accelerates, retailers across the region are under increasing pressure to modernize their point-of-sale (POS) systems. Yet, the journey is far from straightforward. Latin American retailers face a distinct set of challenges—legacy infrastructure, regulatory complexity, and rapidly evolving payment preferences—while also standing at the threshold of significant opportunity. The rise of digital wallets like FPAY and the demand for seamless omnichannel experiences are reshaping the competitive landscape. Publicis Sapient’s work with leading regional clients, such as Falabella, demonstrates how a tailored, regionally attuned approach can unlock value and drive transformation at scale.

The Challenges: Legacy Systems, Regulatory Nuance, and Fragmented Journeys

Many retailers in Latin America are still operating with POS systems that are more than a decade old. These legacy platforms are often locked into restrictive vendor contracts and built on monolithic architectures, making them difficult to upgrade or integrate with new technologies. The result is a host of operational and strategic challenges:

Obsolescence and Security Risks: Outdated hardware and proprietary code bases are increasingly vulnerable to security threats and lack the agility to support new features or compliance requirements.
Vendor Lock-In: Tightly coupled systems limit the ability to integrate best-in-class solutions or peripherals, stifling innovation and flexibility.
Fragmented Customer Journeys: Disconnected POS and e-commerce platforms create operational silos, making it difficult to deliver unified experiences across physical and digital channels.
Regulatory Complexity: Latin America’s diverse regulatory environment demands adaptable solutions that can accommodate local compliance requirements and rapidly evolving payment standards.

Evolving Consumer Behaviors and Payment Preferences

Latin American consumers are embracing digital at an unprecedented pace. The adoption of digital wallets—such as FPAY in Chile—signals a broader shift toward cashless, contactless payments. Retailers must be prepared to:

Support Multiple Payment Methods: From traditional cards to digital wallets and emerging fintech solutions, POS systems must be agnostic and easily extensible.
Enable Frictionless Checkout: Shoppers expect rapid, self-directed checkout options, whether through self-service kiosks, mobile POS (mPOS), or scan-and-go experiences.
Deliver Omnichannel Consistency: Consumers want the flexibility to shop online, pick up in-store, or return items seamlessly across channels.

The Falabella Case: A Blueprint for Regional Success

Falabella, one of Latin America’s retail leaders, partnered with Publicis Sapient to reimagine its in-store experience and modernize its POS infrastructure. The transformation began with a vision for frictionless checkout and a pilot rollout in home improvement stores, starting with the integration of FPAY digital wallet acceptance. The results were compelling:

Seamless Self-Checkout and mPOS: Customers gained the ability to check out independently, with 80% of transactions completed without associate assistance and a 37% reduction in transaction times.
Cloud-Native, Extensible Architecture: The new POS platform is agnostic to on-premise or cloud hosting, supports remote deployment, and integrates with existing CI/CD automation for rapid feature rollouts.
Omnichannel Orchestration: The solution connects e-commerce, marketplace, and in-store experiences, enabling single-click remote deployment and continuous innovation.
Scalability and Flexibility: The platform is designed to scale across geographies and business units, supporting future expansion and adaptation to local market needs.

Publicis Sapient’s Approach: Adapting to Regional Realities

Publicis Sapient’s methodology is rooted in a deep understanding of both global best practices and local market dynamics. Our approach to POS modernization in Latin America is characterized by:

Cloud-Native, Open Architectures: Leveraging microservices and open standards, we enable integration with a wide range of payment providers, peripherals, and digital services—future-proofing investments and avoiding vendor lock-in.
Incremental, Non-Disruptive Migration: Our frameworks allow for gradual modernization, coexisting with legacy systems and minimizing operational risk during transition.
Agile, Value-Driven Delivery: We prioritize high-impact opportunities, validate solutions through rapid prototyping, and scale successful features across the network.
Security and Compliance: Solutions are designed to meet stringent security standards and adapt to evolving regulatory requirements across Latin American markets.

Unlocking Opportunities: The Path Forward for Latin American Retailers

Modernizing POS systems is not just a technology upgrade—it’s a strategic enabler of unified commerce, operational agility, and customer-centric innovation. For Latin American retailers, the benefits are clear:

Unified Commerce: Seamlessly connect in-store and digital channels, supporting omnichannel journeys and real-time data sharing.
Agility and Speed: Roll out new payment methods, loyalty programs, and customer experiences rapidly, staying ahead of market trends.
Cost Efficiency: Reduce total cost of ownership through cloud-native, open-source technologies and incremental upgrades.
Scalability: Support new store formats, devices, and business models as the business evolves.
Future-Proofing: Adopt modular, MACH-compliant (Microservices, API-first, Cloud-native, Headless) architectures that can adapt to whatever comes next in retail.

Why Publicis Sapient?

Publicis Sapient is recognized as a leader in retail transformation, with a proven track record of delivering measurable results for retailers across the Americas and beyond. Our blend of strategy, engineering, and local expertise ensures that every POS modernization project is tailored to the unique realities of Latin American retail—enabling our clients to leapfrog legacy constraints and lead the next era of retail innovation.

Ready to transform your in-store experience? Connect with Publicis Sapient’s experts to discover how we can help you modernize your POS, unlock new value, and deliver the seamless, omnichannel experiences your customers expect.