PayU GPO, the online payment service provider, has released its LatAm E-Commerce Report 2023, exploring e-commerce across Latin America; revealing a 3.1 times increase of the overall number of transactions in the region between 2019 and 2012 – rising from $117million to $364million.
Having already seen significant growth in the region, PayU GPO predicts further growth across LatAm – and suggests its e-commerce market could grow by 25 per cent in volume across the likes of Argentina, Brazil, Chile, Colombia, Mexico, and Peru by 2027. cementing Latin America’s status as one of the world’s highest-growth e-commerce markets.
The report also suggests that Brazil and Mexico are poised to dominate the Latin American e-commerce market with projected Compound Annual Growth Rates of 77.2 per cent and 68.2 per cent respectively by 2027 despite inflation.
Overall, the number of shoppers in Latin America using PayU to make e-commerce payments has more than doubled, from 15.3 million in 2019 to 29.3 million in 2022. PayU also explained that it expects this number to grow even further – to around 33.9 million by 2024.
With vast numbers of shoppers engaging with e-commerce in Latin America for the first time in the last few years, credit cards still took the top spot for payments in Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
As would be expected, reliance on cash has decreased as online shopping accessibility has expanded to populations that have been excluded in the past. As a result, bank transfers are now the second most popular e-commerce payment method in Mexico and Brazil – driven by platforms such as PIX in Brazil; according to the PayU report.
Latin America has emerged as a pivotal market in the world of e-commerce
Daniel Cohen, CEO of PayU GPO, commented: “We have seen the e-commerce market in Latin America quickly adapt to recent macroeconomic trends, offering innovative digital offerings to meet changing consumer demands and growing at a rapid pace.
“As such, Latin America has emerged as a pivotal market in the world of e-commerce. The opportunities for merchants looking to capitalise on the high-growth Latin American market are vast, and PayU’s cross-border payment solutions are designed to help merchants expand their businesses and process payments across the region seamlessly.”
Federico Balige, CEO of PayU LATAM, also added: “Fuelled by the surging e-commerce landscape and a population adept in digital trends, LatAm presents incredible growth potential despite short-term macroeconomic headwinds including inflation and recession.
“PayU GPO has contributed to the growth of Latin American economies. By offering a broad portfolio of digital financial solutions, we have been reliable partners for both big and small market players, guaranteeing their inclusion in the financial ecosystem.
“As a trusted and reliable partner for e-commerce growth, PayU GPO continues to be best placed to help growth-minded merchants meet the needs of ever-changing consumer preferences by offering the local payment methods that their customers know and trust.”