The data comes from an exclusive study showing that most of the retailers surveyed in this region agree that offering local payment options is a key benefit
SO PAULO, 14. June 2022 /PRNewswire/ — BoaCompra by PagSeguro, a fintech company specializing in enabling global companies to accept local payment methods and local currencies from 17 Latin American countries, has just published an exclusive study on the current main scenario of the Latin American online market published. The white paper entitledDigital Renaissance in Latin America: An in-depth look at trends, opportunities and challenges in the Latin American e-commerce industrywas created in cooperation with Americas Market Intelligence (AMI).
The comprehensive study provides insights and updated data on the rapidly changing online market in Latin America, a region with great opportunities for companies involved in the digital space – especially now that the proliferation of digital banks is increasing, the digitization process in the region accelerated by the pandemic and the economy is recovering post-Covid. The study focuses on the six leading markets in Latin America: Brazil, Mexico, ChileColombia, Peru and Argentina.
In addition to internal AMI data and public sources, the research also included in-depth interviews with cross-border retailers and local players selling in the above markets across multiple verticals including retail, video and music streaming, gaming, travel and B2B digital product providers. The interviews took place in the first quarter of 2022.
All industries What they have in common is the realization that digitization is an ongoing trend that can no longer be stopped. With an average internet penetration and an average share of smartphone owners of 77% More and more Latin Americans prefer to use the Internet to conduct many other daily personal and professional activities, as well as to make purchases.
Against this background, Latin America is a good choice for international expansion for companies in all sectors. Industries like retail and digital goods have seen an exponential increase in sales during the pandemic: the white paper shows that61% of the population in the countries surveyed shopped online in 2020, and in 2021 this number rose to 67%. Due to the higher frequency, greater variety of products and higher average price, AMI expects the Latin American e-commerce market to grow at a CAGR of 25% and reach a volume of US$646 billion in 2025.
In order to unlock all this market potential, it is fundamental to meet customer expectations. When it comes to offshore merchants selling in Latin America, this also means that they must accept local payments and local currencies.
the study According to the study, while credit cards remain the most commonly used payment method in Latin America (46% of sales in 2021), 78% of the cards used in the region are used only domestically. In Brazil, the share of purely domestic payments with credit card is 70%. Almost all merchants interviewed for the study agree that offering local card payment options is a key advantageas this increases popularity, improves customer experience and allows retailers to offer local practices such as installment payments (which account for 50% of online sales paid for with credit cards, depending on segment and purchase volume).
Another important trend in Latin America is the growing preference for mobile banking and digital payment methods, such as B. Pix in Brazil (electronic and instant payment method of the Central Bank of Brazil). This is driving financial inclusion and innovation in the region, significantly changing the traditional payments landscape and making it even more attractive for foreign companies to sell there.
This complex financial scenario makes it difficult for foreign companies to operate in Latin America without a local entity. It is therefore important to be able to rely on a local partner who knows the financial landscape of the region. The full white paper contains a wealth of relevant data and potential solutions for retailers operating or planning to do business in Latin America. It can be downloaded for free from the following link:https://hubs.la/Q01csnZv0.
Information about BoaCompra by PagSeguro
BoaCompra by PagSeguro is a local payment platform that allows merchants worldwide to accept local payments in Latam or send payouts to Brazil. A one-stop payment solution offering local processing in local currency with local or international settlement in 17 Latin American countries. It is part of PagBank PagSeguro, one of the largest fintech companies in Latin America and a game-changer in financial technology solutions built on a robust infrastructure.
About Americas Market Intelligence
Americas Market Intelligence (AMI) is the premier market research firm for Latin America, providing powerful market and competitive intelligence for companies seeking success in the region, with a focus on financial scenarios, payment methods and innovative financial solutions.