As the expansion of e-commerce becomes more stabilized across the globe, there are still higher-growth markets with untapped potential to be explored – that is the case with emerging markets. Latin America, Africa, and the developing countries of Asia represent major opportunities for boosting cross-border e-commerce businesses, with countries either already highly digitized or fast on track for that.
Looking specifically at Latin America, the region perfectly encapsulates the challenges and opportunities of emerging markets: factors such as fluctuating economies and high levels of inequality mean that, even with digital-savvy customers and impressive levels of innovation, there is still a large portion of the population without access to bank accounts, newer payment methods such as instant payments, or even smartphones.
In this context, emerging markets do have similar characteristics, but it’s also important to look into each country individually and invest in a deep understanding of each group of customers, with their own payment preferences, languages, and consuming priorities.
In this blog post, we will look further into why emerging markets are an interesting target for cross-border merchants, the key factors in successfully selling there, and why local payment methods are a defining aspect of your strategy for these regions. Keep reading:
Emerging markets are defined not only by their economic potential, but also by their demographic dynamism: Latin America alone is home to over 670 million people, with Brazil and Mexico leading in both population and digital commerce activity. Africa and South Asia add billions more potential consumers, many of whom are young, tech-savvy, and underserved by traditional financial systems.
As we have shown in our white paper E-commerce and Payment Landscape in Latin America, the region’s Top Six Markets — Brazil, Mexico, Colombia, Argentina, Chile, and Peru — account for 89% of the region’s GDP and 75% of its population. Brazil and Mexico alone represent 61% of the region’s cross-border e-commerce volume, with Mexico showing the fastest growth due to its proximity to the U.S. and increasing digital infrastructure.
In this context, smartphone penetration and internet access also grow in Latam, reshaping consumer behavior and accelerating the adoption of digital services. All Top 6 Markets in Latin America have significant smartphone penetration rates, with Peru having the lowest rate (64%) and Brazil the highest, with an impressive 90%.
Latam is a digitized region, with fast evolving technology and consumers who are open and eager to adopt new technologies and embrace digital trends. This directly connects to its payments landscape, as we will dive into below.
Across Latin America – especially in its #1 market, Brazil –, instant payment methods are playing a more and more important role in the e-commerce market. While other regions are behind in terms of enabling a system like Pix, Latin American customers are increasingly demanding speedy payments and, thus, a strategic payment method strategy is a cornerstone to creating the frictionless payment experience they demand and expect.
Since many consumers lack access to traditional banking services or international credit cards, they rely instead on alternative payment methods, such as instant bank transfers and e-wallets. However, cash is still massively used – even in e-commerce, through cash-based vouchers.
Amidst this context of huge differences within the same country, alternative payment methods quickly became deeply embedded in local consumer behavior. This diversity in payment preferences means that a one-size-fits-all approach simply doesn’t work: one of the biggest and most common mistakes to be made when targeting emerging markets is treating them as similar scenarios.
But to truly succeed in Latin America and other emerging regions, merchants must understand the nuances of each market and tailor their payment options accordingly. Offering local payment options is not optional — it’s essential.
Without them, businesses risk alienating large segments of the population, increasing cart abandonment rates, and losing trust among consumers who prefer familiar, secure ways to pay. Local payment methods help bridge the gap between global merchants and local consumers by:
The rapid digitization of emerging markets is not just about infrastructure — it’s about changing consumer habits. Mobile-first behavior is prevalent, with many consumers accessing the internet exclusively through smartphones. This has profound implications for how e-commerce platforms are designed and how payments are processed.
Consumers in these regions are increasingly comfortable with digital transactions, but they also value security and agility. Offering payment methods that align with these expectations is crucial – instant payments such as Pix are not only built with innovative UX in mind, but with strong, agile security features that help boost customer acceptance.
This context of fast digitization also boosts e-commerce growth. Innovative sales models and global trends can take a while to arrive in emerging markets – for example, Tik Tok Shop, which was launched in Brazil in May 2025 and will certainly make waves in the country’s bustling e-commerce market –, but customers are usually eager and open to try them.
Therefore, if you invest the time and resources needed to understand your customers in emerging markets, there is a lot of room to grow in these regions. Ask yourself:
While the opportunities are vast, merchants must navigate several challenges when entering emerging markets:
To overcome these hurdles, merchants should adopt a strategic approach that understands each country in Latin America – or any other emerging region – as its own unit, with distinct customer preferences and payment habits.
Emerging markets represent a powerful growth opportunity for e-commerce — but only for merchants willing to adapt. By embracing local payment methods, businesses can unlock access to millions of new customers, foster loyalty, and build sustainable operations in some of the world’s most dynamic economies.
And when it comes to navigating the regulatory landscape, understanding the local customers, and implementing the best payment strategies to succeed in Latin America, counting on a local partner is fundamental. PagSeguro has the expertise and the solutions you need to scale in the region – click below to get in touch with us and boost your business in Latam: