LATAM at a glance
Latin America is one of the fastest-growing e-commerce markets in the world: e-commerce volume has reached 769 billion USD, and 87% of the region’s population is online. Between 2024 and 2029, e-commerce penetration is expected to rise to 67%, highlighting significant headroom for continued growth.
Key data:
- Population: 639 million
- GDP: $7 trillion (USD)
- E-commerce volume: $769 billion (USD)
Mexico
Financial inclusion is a challenge in Mexico, where 42% of the population is unbanked. For merchants and PSPs, this presents an opportunity to extend services to those without access to traditional financial services.
Key local payment methods:
- Carnet
- OXXO Pay
- SPEI
OXXO, a nationwide convenience store chain, plays a key role in supporting the unbanked population. Its payment method, OXXO Pay, bridges the financial inclusion gap by enabling consumers to pay for online purchases with cash at their local store.
Colombia
With a compound annual growth rate (CAGR) of 13%, Colombia’s e-commerce market is expanding rapidly, driven by new digital payments infrastructure and widespread mobile adoption.
Key local payment methods:
- Bre-B
- Daviplata
- Efecty
- Nequi
- PSE
Despite the rise of digital payments, cash-based payment methods continue to play a significant role in Colombia. A flexible approach that supports both digital and cash-based payment methods is crucial to reaching Colombian consumers.
Brazil
Brazil is a major market for international merchants with a population of 213 million and a GDP of over 2 trillion USD.
Key local payment methods:
- Boleto Bancário
- Elo
- Nupay
- Pix
Bank transfer methods, like Pix, have been widely adopted in the Brazilian market. By 2030, bank transfers are expected to account for 58% of e-commerce payments and 46% of POS payments. The influence of Pix is highly significant, making it essential for APAC merchants to integrate it into their payments strategy.
Argentina
Digital wallets and bank transfers are becoming the standard in Argentina. By 2030, wallets are projected to power 48% of e-commerce and 39% of POS transactions, while bank transfers will account for 19% and 17%, respectively.
Key local payment methods:
- Cabal
- Mercado Pago
- Naranja
- Pago Fácil
- Rapipago
At the same time, government reforms aimed at stabilising the peso and easing restrictions on imports and currency controls are making it easier for APAC merchants to operate.
Chile
Chile has a smaller population than neighbouring countries, but it has the highest GDP per capita at $17,180 (USD). Cards are a popular payment method in Chile for e-commerce and POS transactions, with local card scheme Redcompra dominating debit card payments.
Key local payment methods:
- Red Compra
APAC merchants looking to expand into Latin America should consider Chile. The majority of Chilean consumers are familiar with international shopping: almost three-quarters (73%) say they have made cross-border e-commerce purchases.
