LIFESTYLE

The rise of the Latin American e-commerce market, driven by new instant payment channels


Brazil’s Pix instant payment system, launched only last year by the country’s Central Bank, has survived exponential growth that has surpassed credit and debit cards as well as Brazil’s own tickets, according to the third edition of the Beyond Borders 2021-2022 research study funded by fintech unicorn. EBANX.

Since it didn’t exist in early 2020 until the first hour of online shopping in 2021, Pix now uses more than half of Brazil’s 214 million population. It has accelerated from zero, straight up and to the right since Q4 2020, and shows no signs of slowing down.

“The rise in real-time payments like pix and wallets is transforming Latin Americans’ relationship with digital commerce and creating a race to provide better shopping experiences, expand payment options, as well as logistics skills and the impact of financial innovation.” ”Said João Del Valle, founder and CEO of EBANX.

LatAm: An essential battleground for global and local actors

In EBANX Beyond Borders new research, launched today, believes Latin America is one of the fastest growing e-commerce markets in the world. The region is expected to expand by 31 percent per year by 2025.

In Central America, especially, the region will have one of the highest growth rates in 2021: with the online market still in its infancy and the young and digital population eager to buy online, it should be the region. The next sweet spot in LatAm. Countries like El Salvador, Guatemala and Panama are projected to anticipate 2021, with growth rates of 50, 60 and 40 percent, respectively.

Data diagram from the Beyond Borders 2021-2022 study

Because of this hyper-growth scenario, Latin America has become a battleground for global and local actors, with increasing competition in digital retail products and services.

The growing region will be key to the sustainable growth of global companies, as more mature markets like the United States and Europe reach a saturation point. LatAm’s streaming market, for example, is the second fastest growing globally, according to estimates by global data and information company Netscribes, with fierce competition between local and global players.

Latin American fintechs are establishing new world trade routes

“For global traders expanding into the region Alibaba to Amazon and Shop e-commerce to technology giants that offer many services like Garena, Netflix or WhatsApp – The Latin American payment landscape is particularly impressive. In South America alone, there are at least 14 different currencies, ”Del Valle of EBANX wrote recently. TechCrunch + guest post.

João Del Valle, General Manager and Co-Founder of EBANX.

For smaller businesses of all kinds that are on a wave of digital acceleration, for global tech titans since the pandemic started last year, a new breed of infrastructure fintech has attracted unprecedented venture funding to make online trading and payments faster, easier and more efficient this year, according to Del Valle. When it comes to digital commerce, the world is smaller than ever, and our shopping and payment experiences need to reflect this new reality.

Beyond Borders 2021-2022 research shows an interesting scenario for digital commerce in Latin America, where players who invest in localization and the right payment strategy, whether local or global, national or international, have a better chance of making the most of the region. potential.



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