LATAM at a glance
Latin America is one of the fastest growing e-commerce markets in the world, with e-commerce volume reaching $633 billion and 87% of the region’s population is online. Cross-border e-commerce is thriving as well, with a volume of over $52 billion, presenting an enormous opportunity for US merchants and PSPs.
Key data:
- Population: 635million
- GDP: $6.66 trillion
- Ecommerce volume: $633 billion
Mexico
Financial inclusion remains a challenge in Mexico, where 48% of the population is unbanked. This means there’s a big opportunity for US merchants and PSPs who can extend services to those outside traditional finance structures.
Key local payment methods:
- Carnet
- OXXO Pay
- SPEI
One of the most influential players in this space is OXXO, a nationwide convenience store chain with over 20,000 locations. Through its payment method, OXXO Pay, Mexican consumers can pay for online purchases with cash at physical stores.
Colombia
Colombia’s e-commerce market is growing at a rapid rate, with 13% CAGR, driven by expanding digital payments infrastructure and widespread mobile adoption.
Key local payment methods:
- 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 represents a huge market for US 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 taken hold in Brazilian payment. By 2030 bank transfer payments are expected to account for 58% of e-commerce payments and 46% of POS payments, making it essential for merchants to integrate Pix and similar methods to succeed in this market.
Argentina
Digital wallets have become essential in Argentina, where hyperinflation has pushed consumers to seek credit-based payment solutions to preserve purchasing power.
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 US merchants to operate. Volatility in this market is driving demand for LPMs whilst liberalisation opens doors for new cross-border commerce.
Chile
Chile has a smaller population than many of its neighbours, but it has the highest GDP per capita at 16,400 USD. Local cards are a very popular payment method in Chile for e-commerce as well as POS transactions with Redcompra dominating.
Key local payment methods:
- Red Compra
For US merchants, Chile offers an attractive entry point into Latin America. The majority of Chilean consumers are familiar with international shopping: almost three-quarters (73%) say they have made cross-border e-commerce purchases.
