"Digital Renaissance in Latin America" study brings exclusive data and insights on how to better sell to the fast-rising region.
BoaCompra by PagSeguro has just released its newest white paper, Digital Renaissance in Latin America: a deep dive into trends, opportunities, and challenges in the Latin American e-commerce industry.
Conducted in partnership with Americas Market Intelligence (AMI), the comprehensive study provides insight and brings up-to-date data about the fast-changing online market in Latin America, a region with ripe opportunities for companies operating in the digital scenario — especially now, with the increasing penetration of digital banks, the region’s digitization process being even more accelerated by the pandemic, and a recovering economy post-Covid.
Focusing on the six leading markets in Latam: Brazil, Mexico, Chile, Colombia, Peru, and Argentina, the white paper shows the reasons why businesses of any sector are finding Latam a great choice for international expansion. Industries such as retail and digital goods saw an exponential rise in sales during the pandemic. For example: 61% of the population in the evaluated countries made online purchases in 2020 and, in 2021, the number rose to 67%. With more frequency, more product variety, and a higher average ticket, AMI expects Latin America’s e-commerce market to grow at a CAGR of 25%, reaching US$ 646 billion in 2025.
To tap into all this market potential, attending client expectations is fundamental — when it comes to offshore merchants selling in Latin America, this includes their need to accept local payments and local currencies.
According to the study, while credit cards are still the most used payment method in Latin America (46% of sales in 2021), 78% of the cards used in the region are domestic-only. In Brazil, the rate of domestic-only credit card payments reaches 70%. Almost all merchants interviewed during research agree that being able to offer local card payment options is a game-changer, since it increases approval rates, improves client experience, and allows merchants to provide local practices such as installment payments (which represent 50% of online sales paid by credit cards, depending on the segment and purchase size).
Another major trend in Latin America is the increasing preference for mobile banking and digital payment methods, such as Brazil’s Pix. This pushes forward financial inclusion and innovation in the region, changing the traditional payment landscape considerably and making it even more interesting for foreign companies to sell there.
Navigating this complex financial scenario makes operating in Latam difficult for foreign companies without a local entity, which highlights the need for counting on a local partner with expertise on the region’s financial landscape.
Thus, relevant data and possible solutions for merchants operating or planning to operate in Latam are available in the full white paper. Click below to download it for free: