Digital commerce in Central America for expanding up to a 60% in 2021

E-commerce

Incrementa comercio electrónico en Latino América

Photo: Courtesy.

Editorial Dept. Voz de la Diaspora

CURITIBA, BRAZIL, 23 November 2021 - The Latin American digital commerce market is expected to increase by a surprising 37% for purposes of 2021 and expand at a double digit rate up to 2025, with some of the biggest markets, like Brazil and Mexico, growing around the 30% year. Countries like Argentina, Chile and Colombia will also maintain annual double-digit growth, of more than 20% and from 30%, while the new emerging markets, including Bolivia, Guatemala, Paraguay and Peru, they will grow even faster, at rates of 40% and reaching the 80% every year.

Central America will have the most impressive growth in the region for 2021, with Guatemala, El Salvador and Panama leading the way, with its digital markets growing 60%, 50% Y 40% respectively this year. Costa Rica, at the same time, will have the highest digital trade penetration among Central American countries, and it will be the third largest in all of LatAm, a 69%, behind only Brazil and Argentina.

Electronic commerce grows in Central America. Photo: Courtesy.

This rapid acceleration is mainly due to the widespread adoption of new payment methods such as e-wallets and Pix, the Brazilian instant payment system launched at the end of 2020, as pointed out by the annual study Beyond Borders 2021/2022, now in its third edition, released today by EBANX, the leading payments company that connects global and local companies to consumers in Latin America.

The annual study is based on data from multiple sources, including market forecasts from Americas Market Intelligence (WHICH), a strategic market research consulting firm, and anonymized data from EBANX on the behaviors and preferences of Latin American consumers. This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America..

This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America. 214 This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America., This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America., This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America., This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America., This latest edition of Beyond Borders predicts that Pix will soon become an ecosystem of solutions that will serve as a point of reference throughout Latin America..

“The rise of real-time payments like Pix and e-wallets is transforming Latin Americans' relationship with digital commerce and creating a race for better shopping experiences, Expanded payment options and even impacting logistics prowess and financial innovation”, said Joao Del Valle, co-founder and CEO of EBANX. “The data presented in this year's study shows that the rapidly evolving payments landscape has become a real foundation that supports the steady growth of the entire digital commerce market in Latin America.”.

Alternative payment methods grow, as mobile commerce accelerates
just like pix, e-wallets provide near-instant confirmation and are seeing huge adoption across the LatAm region, which helps attract new people to digital commerce and becomes a hub for financial services and shopping experiences. According to Beyond Borders 2021/2022, e-wallets are now the fourth most relevant payment method in the digital commerce ecosystem of
Latin America, and are used to pay around the 11% of all online transactions.

The growth of new forms of payment has occurred at the same time that mobile purchases have surpassed those made through computers in Latin America. Late 2021, almost the 60% of total purchases in digital commerce in LatAm will be paid through smartphones.

“The intrinsic mobile experience offered by e-wallets is rapidly gaining traction alongside the high penetration of smartphones in Latin America. In many countries of the region, more adults have a smartphone than a bank account, turning these mobile devices into a fundamental instrument for digitization and financial inclusion”, said Juliana Etcheverry, Director of Alliances
EBANX LatAm Market Expansion and Payment Strategies. “They are a powerful tool for digital innovation and a cost-effective delivery method for financial products.”.

Debit cards are another highlight of the study, ranking as the third most popular payment method in the digital commerce market of the region in 2020 and holding this position 2021, according to AMI data. Among new debit card users within digital commerce, there are also low to medium income consumers, newcomers to the world of online shopping and also new generations
brought by fintechs.

“In other words, the growth of debit cards in digital commerce in Latin America shows that not only the upper class is buying online. Consumer behavior has also changed, with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely. with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely
with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely”, with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely.

with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely
with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely. with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely 31% with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely 2025. with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely, Latin America has become a fertile ground for global and local players, Latin America has become a fertile ground for global and local players.

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Meanwhile, Latin America has become a fertile ground for global and local players, Latin America has become a fertile ground for global and local players 40% in 2021 Latin America has become a fertile ground for global and local players, is bringing a new trend in Latin America. New data from Beyond Borders shows that local e-commerce titans like Mercado Libre, Americanas and Casas Bahia are competing head-to-head with global players like Amazon, AliExpress y Shopee, and both groups are offering national and international products on their platforms and attracting more small and medium
Business (SMEs) to the digital world.

“Beyond Borders shows an intriguing scenario for digital commerce in Latin America, where players who invest in location and the right payment strategy, whether local or global, national or international, have a better opportunity to harness the full potential of the region. It is a market that is now completely open to those who provide the best shopping experience and engage more deeply with Latin American consumers.”, with people turning to online commerce for the first time to buy groceries and other everyday items – items with a lower average value and making paying with a debit card more likely.