Latin America was the region with the highest sales growth in e-commerce retailer, registering an increase of 36.7% in 2020, which exceeded the world average of 27.6%, indicated the global payment and financial technology platform Rapyd.
According to the firm, Mexico and Brazil were the leaders in this sector within the countries in the area, although the outlook suggests that Colombia, Argentina Y Peru advance as they develop their markets for e-commerce.
In the case of Mexico, Rapyd explained that despite having a preference for the use of cash as a form of payment, with 62%, online purchases grew strongly.
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The main reason why cash is still widely used in Mexico is because only 37% of the population is banked; However, the options for digitization stores are growing more and more, such as payment in convenience stores, which is one of the most used.
The other most used means, after liquid money, are ewallets, such as PayPal (international option), and Masterpass Y Payment Market (locales).
The other way to do electronic transactions is debit cards, slightly ahead of credit cards.
Rapyd explained that there are around 200 million unbanked people in the region, so companies seeking to reach these countries must understand how online purchases are paid in each market, that is, what are the local payment methods preferably.
For example, in Brazil 77% of the population in rural areas use smartphones to access internet, which makes mobile commerce and its payment facilities a catapult for e-commerce.
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A country with a promising market is Chile, because 90% of its adult population have a mobile phone and 74% have a bank account. In Argentina, the possibilities are also potential considering that 50% of its population is banked and a quarter uses a credit card, Rapyd detailed.
Even if Peru has a small e-commerce market, sales growth of 198% last year puts it in an attractive position to expand the digital business, the firm added.
“Global companies, and even Mexican ones, who want to enter these markets, have to know and enable the preferred payment methods in each country to convert and not frustrate a sale in the last step,” said Eric Rosenthal, vice president of Rapyd for America.
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