Latin America Online Payment Methods Report 2019
DUBLIN, Feb. 18, 2019 /PRNewswire/ -- The "Latin America Online Payment Methods 2019" report has been added to ResearchAndMarkets.com's offering.
More than one-half of online shoppers in Latin America prefer to pay by credit, debit or a prepaid card, according to a recent survey cited in the report. Cash on delivery (COD) is another popular payment method, especially among consumers who do not have a bank account. Furthermore, as an alternative to card and COD payments, a double-digit share of shoppers in Mexico, Argentina, and Colombia paid for their Internet purchases in brick-and-mortar locations, such as convenience stores, supermarkets or pharmacies, as of 2018.
An emerging payment trend in Latin America is the use of mobile payment methods to settle transactions online and in-store, this report shows. More than two-thirds of connected consumers surveyed in this region in 2018 said they would likely start to use mobile payments next year, one of the highest rates worldwide. One in ten smartphone users in this region is expected to make mobile payments in brick-and-mortar stores this year.
The current leaders of the shift to proximity mobile payments in Latin America by sales volume are Argentina and Mexico, while the share of potential users was the highest in Dominican Republic and Peru. With consumers' interest heating up, a growing number of mobile payment solutions become available on the market, including Apple Pay, Google Pay, Samsung Pay and BBVA Wallet, among others.
In the region's largest E-Commerce market, Brazil, a specific form of credit card payments dominates online payments, namely, payment in two or more credit card installments. A local bank payment method, Boleto Bancario, comes in close second, with a perspective of overtaking card payments in installments.
According to a survey cited in the study, a double-digit share of shoppers report having received a discount from an online merchant when they chose to pay with Boleto Bancario. ECommerce card payment statistics also show that the share of installments declined between 2017 and 2018.
Online shoppers in Latin America prefer to pay by card
Different types of cards were the preferred method of more than 50% of online shoppers in Latin America in 2018, according to this research. Cash on delivery ranked second, followed by other alternative payment methods such as payment at convenience stores and supermarkets.
Mobile payments are increasing across Latin America
Mobile payment is a growing trend both in online and brick-and-mortar shopping in Latin America. Two in three Internet users in this region said they would be likely to use mobile wallets or similar payment methods during 2018/2019. Recent market estimates cited by the researcher reveal that consumers in Argentina and Mexico had the highest rates of in-store mobile payment usage among their regional peers. The competitors in the expanding mobile payments market in Latin America include Apple Pay, BBVA Wallet, Google Pay and Samsung Pay, among others.
Credit card installments still popular in Brazil
Digital shoppers in Brazil, Latin America's largest online retail market, paid by credit card installments more than by other methods in 2018, according to a survey in the report. However, the popularity of this method declined slightly from 2017, given that many online merchants offer discounts on one-time payment methods such as via Boleto Bancario.
Global Developments
- Payment Methods Accepted in Online Stores, in % of Online Stores, February 2018
- Reasons For Not Shopping Online, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, Q1 2017 & Q1 2018
- Breakdown of Card Payments by E-Commerce and POS Payments, in %, 2016 & 2022f
- Online Payment Fraud Losses, in USD billion, 2018e & 2023f
- Share of Respondents Who Would be Willing to Use Fingerprint or Other Biometric to Secure Their Payment Details, in %, 2018
- Mobile Payment User Penetration, by Region, in % of Internet Users, Q4 2017
- Proximity Mobile Payment User Penetration, by Region, in % of Smartphone Users, 2017-2022f
- Top 10 Countries by Proximity Mobile Payment User Penetration, in % of Smartphone Users, 2019f
- Share of Internet Users Who Are Likely To Use Mobile Payment Next Year, in % of Internet Users, by Region, Q1 2017 & Q1 2018
- Share of Internet Users Who Are Likely To Use Mobile Payment Next Year, in % of Internet Users, by Selected Countries, Q1 2018
- Mobile Wallet User Penetration, in % of Respondents, by China, Germany, India, Taiwan, the USA and the UK, 2018
- Number of Contactless Payment Users of Apple Pay, Samsung Pay, Google Pay and Other OEM Pay, in millions, 2018e & 2020f
- Retail Spending at Frictionless Payment Stores, in USD million, 2018e & 2023f
- IoT Payments, in USD billion, 2018e & 2023f
- IoT Payments, in USD billion, by Connected Car and Connected Home Device Payments, 2021f
Questions Answered in this Report
- What are the key trends and developments in online payments worldwide and in Latin America?
- How do online payment method preferences vary between Argentina, Brazil, Chile, Colombia, and Mexico?
- How important is payment security to digital consumers across the region?
- What is the current state and the prospects of mobile payments in Latin America?
- How many consumers in Latin America use mobile wallets to pay in-store?
Companies Mentioned
- Alphabet Inc
- Apple Inc
- Mastercard Inc
- MercadoLibre Inc
- Oxxo S.A.
- PagSeguro Digital Ltd.
- Paypal Inc
- Samsung Co. Ltd
- Visa Inc.
For more information about this report visit https://www.researchandmarkets.com/research/6gbqt6/latin_america?w=5
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