Countries Covered: Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Peru, Venezuela
Publication Date: 15/02/2019
Questions Covered in the report:
- What are the key trends and developments in online payments worldwide and in Latin America?
- How do online payment method preferences vary between Argentina, Brazil, Chile, Colombia, and Mexico?
- How important is payment security to digital consumers across the region?
- What is the current state and the prospects of mobile payments in Latin America?
- How many consumers in Latin America use mobile wallets to pay in-store?
Plastic reigns in the Latin American E-Commerce payments market
Payment by card is the top choice of Latin America’s online shoppers
More than one-half of online shoppers in Latin America prefer to pay by credit, debit or a prepaid card, according to a recent survey cited in the yStats.com report. Cash on delivery (COD) is another popular payment method, especially among consumers who do not have a bank account. Furthermore, as an alternative to card and COD payments, a double-digit share of shoppers in Mexico, Argentina, and Colombia paid for their Internet purchases in brick-and-mortar locations, such as convenience stores, supermarkets or pharmacies, as of 2018.
Consumers’ interest in mobile payments is rising
An emerging payment trend in Latin America is the use of mobile payment methods to settle transactions online and in-store, yStats.com’s report shows. More than two-thirds of connected consumers surveyed in this region in 2018 said they would likely start to use mobile payments next year, one of the highest rates worldwide. One in ten smartphone users in this region is expected to make mobile payments in brick-and-mortar stores this year. The current leaders of the shift to proximity mobile payments in Latin America by sales volume are Argentina and Mexico, while the share of potential users was the highest in Dominican Republic and Peru. With consumers’ interest heating up, a growing number of mobile payment solutions become available on the market, including Apple Pay, Google Pay, Samsung Pay and BBVA Wallet, among others.
Brazilians favor E-Commerce payment in installments
In the region’s largest E-Commerce market, Brazil, a specific form of credit card payments dominates online payments, namely, payment in two or more credit card installments. A local bank payment method, Boleto Bancario, comes in close second, with a perspective of overtaking card payments in installments. According to a survey cited in the yStats.com study, a double-digit share of shoppers report having received a discount from an online merchant when they chose to pay with Boleto Bancario. E-Commerce card payment statistics also show that the share of installments declined between 2017 and 2018.