Today PayU GPO, the leading online payment service provider operating in over 30+ emerging markets, announces the publication of LatAm E-Commerce Report 2023, its annual report exploring e-commerce in Latin America. In Latin America, PayU GPO observed a remarkable 2.8X increase in sales value. Additionally, the overall number of transactions in the LatAm region increased by 3.1X between 2019-2023, from $117 million to $364 million.
The LatAm market currently boasts over 300 million digital buyers, and this figure is poised to surge by over 20% by 2027. This rapid growth underscores LatAm’s position as a pivotal market, driven by increasing internet access and the growing economy. As such, the number of shoppers in Latin America using PayU to make e-commerce payments has more than doubled, from 15.3 in 2019 to 29.3 million in 2022. The number is expected to grow even further to 33.9 million by 2024.
The report also reveals compelling insights into the Latin American e-commerce market which is set to grow by 25% in volume across thriving regions – 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. It also reveals that Brazil and Mexico are poised to dominate Latin American e-commerce market with projected Compound Annual Growth Rates of 77.2% and 68.2% respectively by 2027 despite inflation.
The business-to-consumer (B2C) e-commerce market in the region will surpass $7.5 trillion by 2030, presenting a huge opportunity for merchants to reach new audiences by offering their products and services in new markets. Online purchases from abroad accounted for approximately 25% of all purchases in Colombia in 2022, providing a strong argument for accepting cross-border payments. In Latin America, the democratisation of the internet has increased online sales by giving consumers unprecedented access to information. The ability to research products thoroughly, compare features, and explore multiple vendors has cultivated an informed and discerning consumer base. In turn, potential buyers are better equipped to make confident purchasing decisions, increasing online sales. This is supported by the fact that Chile, which has above average internet penetration for the region (88.2%), saw significant e-commerce growth in 2022.
The comprehensive report also reveals the most popular e-commerce payment methods across Latin America in 2022, with credit cards taking the top spot in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. Globalisation has led to a boom in bank transfers and real-time payments within the region, driven by platforms such as PIX in Brazil. With this shift, cash reliance is decreasing while online shopping accessibility is expanding for populations traditionally excluded. The report validates this trend and highlights that bank transfers are on the rise and are now the second most popular e-commerce payment method in Mexico and Brazil.
Daniel Cohen, CEO of PayU GPO says: “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 says: “Fuelled by the surging e-commerce landscape and a population adept in digital trends, LatAm presents incredible growth potential despite short term macro-economic 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.”
The LatAm E-Commerce Report 2023, which includes detailed country spotlights on Argentina, Brazil, Chile, Colombia, Mexico, and Peru, including the most popular e-commerce sectors and Black Friday sales volumes, is available for download now.