Unlock your local payment methods in Latin America

With $7.7 billion in total eCommerce spending in 2017 and a compounded annual growth rate (CAGR) of 37% for 2019, Argentina is Latin America’s third-largest market for eCommerce. Merchants without a local payments strategy are unable to reach 79% or $6.1 billion of the Argentine eCommerce market. Installments are especially important in this market where local cards and alternative payment methods are prevalent.

Bolivia's eCommerce market is small but aiming to grow along with over 7.5 million internet users. With a population of 11.59 million, 51% hold a bank account with a financial institution, but only 7,2% of them have a credit card, and yet 9% have made online purchases.

With a population of 202 million and projected $41 billion eCommerce market in 2019, Brazil is the largest economy in Latin America in eCommerce and beyond. Accounting for nearly 36% of the entire region, Brazil’s eCommerce market expects to remain among the top 10 eCommerce markets globally due to the projected growth of 17% through 2021.

Chile is the country with the highest banking and Internet penetration in the region. The country’s smartphone penetration is also high — at 76% and growing. Its eCommerce indicators are impressive, as well. Chileans are quite comfortable with online shopping and spend almost twice as much per capita as shoppers in Brazil and Argentina.

Supported by an open economy, a stable political environment, and a burgeoning tech industry, Colombia’s eCommerce market of $7 billion is the fourth-largest in the region and is expecting to reach $15 billion by 2021.

Costa Rica With a population of 5 million and over 1 million eShoppers, Costa Rica has an eCommerce market of $2.3B. Cross border transactions account for 77% of the eCommerce volume. Although eCommerce is projected to shrink 22% in 2020 due to the current pandemic, it is expected to recover in 2021 with a 39% YoY growth.

The Dominican Republic has a population of 10.7 million. In 2019, the revenue of eCommerce in the Dominican Republic amounted to $1.8B. 40% of the population is unbanked, and Internet penetration is at 76.8%. Around 20% has a Credit Card and 30% has a Debit Card.

eCommerce in Ecuador is still relatively small. Similar to other markets in LATAM, the main reason for consumers not buying online is the lack of trust. However, new technology and information available are shifting people’s behavior, feeling more confident with putting their payment information online, and taking the market to the expected $1.2B in 2020. One particularity that makes this market different is that the main currency is US dollars.

Mexico is Latin America’s second-largest market for eCommerce. It is expected to reach nearly $48 billion by 2021. Smartphone penetration is at 72% and continues to expand rapidly. Global merchants accepting credit cards through international rails, tap into 40% of eCommerce spend. However, 46% of total eCommerce volume is generated by local debit cards and popular cash payments like OXXO and thus only accessible to merchants who are offering local cards and cash in their payment mix.

Panama has a population of 4.2 million. Ecommerce market was $2.4B in 2019, projected to grow 20% in 2020. Only 50% of the population holds an account in a financial institution, 30% have a debit card and only 10% a Credit Card.

Paraguay is a small and open economy with nearly 7 million people and a GDP of $41 billion. Over the past decade, the Paraguayan economy grew on average 5% annually. The country’s $1.3 billion eCommerce market is growing, as well the country’s internet penetration.

Although Peru is one of the smallest eCommerce markets in Latin America and still, a very much cash economy, Peru’s $3.3 billion eCommerce market is growing rapidly. It is forecasted to grow 40% year-over-year through 2019. In 2016, 91% of online sales took place on a desktop and 85% were to local Peruvian merchants.

In LATAM, Uruguay is referred to as a ‘país boutique’ or a boutique country. With a small population of 3.4 million and exemplary eCommerce development metrics for Latin America, Uruguay’s eCommerce market is growing at a rapid 31%. Uruguayans are highly computer and mobile literate, and the country’s Internet and smartphone penetration, at 88% and 65% respectively, have positioned Uruguay well ahead of most of its neighbors.