New white paper from BoaCompra by PagSeguro points out that only 22% of the cards used in Latin America are internationally enabled
PR96486
SÃO PAULO, June 14, 2022 /PRNewswire=KYODO JBN/ --
--Data is from an exclusive study, which shows that most merchants interviewed
in this region agree that being able to offer local payment options is a game
changer
BoaCompra by PagSeguro, a fintech company specialized in allowing worldwide
companies to accept local payment methods and local currencies from 17 Latin
American countries, has just released an exclusive study about the main current
scenario of the online Latin American market. Entitled Digital renaissance in
Latin America: a deep dive into trends, opportunities, and challenges in the
Latin American e-commerce industry, the white paper was 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. It focuses on the six leading markets in Latam: Brazil, Mexico,
Chile, Colombia, Peru, and Argentina.
Besides internal AMI data and public sources, research also included in-depth
interviews with cross-border merchants and local players selling in the
above-mentioned markets in multiple industries, including retail, video and
music streaming, gaming, travel, and B2B digital goods providers. The
interviews took place in the first quarter of 2022.
A common point between all industries is the understanding that digitization is
an ongoing trend that is here to stay. With an average of 77% both in internet
penetration and in people who own a smartphone, shopping and doing several
other daily personal and professional activities online is the preference of an
increasing number of Latin Americans.
In this context, 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: the white paper shows that 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 (electronic and
instant payment method offered by the Brazilian Central Bank). 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, which can be
downloaded for free through this link: https://hubs.la/Q01csnZv0.
About BoaCompra by PagSeguro
BoaCompra by PagSeguro is a local payments platform that enables worldwide
merchants accept local payments in Latam or send payouts to Brazil. An one-stop
payment solution that offers local processing in local currency with local or
international settlement in 17 Latam countries, it's part of PagBank PagSeguro,
one of the biggest fintech companies in Latam and a disruptive provider of
financial technology solutions driven by robust infrastructure.
About Americas Market Intelligence
Americas Market Intelligence (AMI) is the premier market intelligence firm for
Latin America, providing powerful market and competitive intelligence-driven
insights for companies to succeed in the region with a focus on financial
scenarios, payment methods, and financial innovative solutions.
SOURCE: BoaCompra
MEDIA CONTACT: Milton Rizzato, Telephone: (11) 98360-1000, E-mail:
milton.rizzato@xcom.net.br
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