Latin America is one of the fastest growing e-commerce markets in the world. According to statistics, the annual growth rate of sales in Latin America is 36%. In 2021, e-commerce sales in Latin America will be nearly 115 billion U.S. dollars. Therefore, many cross-border sellers regard Latin America as a new choice for brands to go overseas.
If you want to open up the Latin American market, the first thing sellers have to do is understand local payment habits and local payment methods. So what are the local payment methods in Latin America?
1, Brazil
PagSeguro is the online payment product of UOL, the largest portal website in Brazil, with more than 25 million registered users. In 2021, it also acquired the Brazilian business of German electronic payment giant Wirecard, further expanding its coverage in Brazil.
Boleto is Brazil's official payment method and is supervised by the Brazilian Central Bank . So in Brazil, not only does it have a wide audience, but its usage is very high. Most Brazilians are used to using it for payments, which means if a seller doesn’t support it, chances are the abandonment rate will be very high.
2, Colombia
Colombia is also a country that mainly relies on cash payment, and 97% of consumers complete transactions in cash. This means that if the seller only connects to online payment methods such as PayPal, he will face a very high abandonment rate in Colombia.
Via Baloto is one of the largest offline cash payment methods in Colombia, with more than 13,500 terminals in more than 1,100 cities across Colombia. Covering nearly 96% of the Colombian population, this is highly consistent with the proportion of people in Colombia who use cash to pay.
3, Chile
Servipag is a leading company in the Chilean trading market. It was founded by Chilean official financial institutions, so it has extremely high security and high public trust.
4, Argentina
Pago is the first payment network in Argentina, so it has a very broad foundation in Argentina. Most of the consumer groups in Argentina who prefer to pay with cash are able to accept using it for payment.
Rapipago is the online payment product of GIRE Financial Company, Argentina's largest electronic billing, collection and transaction processing company. It has more than 6,000 payment points in Argentina, which is about twice as many as the previous one. It does not support chargebacks or refunds, and is more suitable for foreign trade e-commerce, game distribution and other industries.
5, Mexico
OXXO is one of the most popular payment methods in Mexico. OXXO is a convenience store chain from Mexico with more than 17,000 stores in Latin America. Mexico's Internet penetration rate reaches 66%.
In addition to the above-mentioned local payment methods, there are also Uruguay RedPagos and Peru PagoEfectivo, which are all mainstream local payment methods in Latin America.
