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 undergoing a profound transformation, driven by shifting consumer expectations, rapid digital adoption, and the imperative for operational efficiency. Yet, the journey to modernize point-of-sale (POS) systems in this region is shaped by a distinct set of challenges and opportunities. From legacy infrastructure and regulatory complexity to evolving payment preferences and the rise of digital wallets like FPAY, Latin American retailers must navigate a landscape unlike any other. Publicis Sapient’s experience—most notably with Falabella—demonstrates how a tailored, regionally attuned approach can unlock the full potential of POS modernization, enabling retailers to leapfrog legacy constraints and deliver seamless omnichannel experiences.

The Challenges: Legacy Systems, Local Preferences, and Regulatory Nuance

Many Latin American retailers operate with POS systems that are more than a decade old, often locked into restrictive vendor contracts and built on monolithic architectures. These legacy systems present several hurdles:

Obsolescence and Security Risks: Outdated hardware and proprietary code bases are vulnerable to security threats and lack the agility to support new features or compliance requirements.
Vendor Lock-In: Tightly coupled architectures limit the ability to integrate non-vendor peripherals or adopt best-in-class solutions, stifling innovation.
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 flexible, adaptable solutions that can accommodate local compliance requirements and rapidly evolving payment standards.

Consumer Behaviors and Payment Preferences

Latin American consumers are increasingly digital-savvy, with a growing appetite for convenience, choice, and control. The adoption of digital wallets—such as FPAY in Chile—reflects a broader trend toward cashless, contactless payments. Retailers must be able 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 leading retailers, 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. Key outcomes included:

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.