PYMNTS Global Commerce Tracker November 2022

November 2022
Read the previous edition

Harnessing The
$382B Latin American
eCommerce Market
Global Commerce Tracker ® Series
• Latin America • Social Media • One Region, • International

Is Primed For Dominates Myriad Firms Make Big
An eCommerce eCommerce In Regulations Moves In The
AUGUST 2022 Boom Ecuador P. 14 LatAm Space
Global Commerce P. 04 P. 10 P. 30
Tracker® Series
2 | Global Commerce Tracker® Series Global Commerce Tracker® Series | 3
What’s Inside 22 How eCommerce Can Unlock The Latin

American Retail Scene
Karen Bruck, vice president of commerce and strategic ini-
tiatives at Mercado Libre, tells PYMNTS about Latin American
04 Latin America Proves Fertile Ground eCommerce’s unique challenges and opportunities.
For Digital Commerce
QR codes, cross-border transactions and more are rapidly 30 International Firms Make Big Moves
changing the Latin American economy.
In Latin America
Amazon, Flatfee and Shopee bet big on the booming Latin
10 LatAm B2C eCommerce Market American digital retail market.
To Hit $164B This Year
Bolivia is a haven for startups, and social media dominates 32 LatAm Could Be A Pioneer In Cashless Tourism
eCommerce in Ecuador.
Real-time payments make transactions simpler for travelers
to Latin America, a boon for the tourism industry.
14 Challenges And Opportunities For
eCommerce In Latin America
34 About
Major market factors include increased domestic and
Information on PYMNTS and Worldline
cross-border spending, greater market penetration of digi-
tal goods and new regulations from LatAm countries.
20 Brazil’s Online Purchasing Trends

Brazil’s eCommerce could forecast the entire region, mak-
ing it a leader in retail trends.
Acknowledgment
The Global Commerce Tracker® Series is produced in collaboration
with Worldline, and PYMNTS is grateful for the company’s support and
insight. PYMNTS retains full editorial control over the following findings,
methodology and data analysis.
© 2022 PYMNTS All Rights Reserved © 2022 PYMNTS All Rights Reserved
Need To Know
How consumers acquire their online purchases
Brazil Mexico
Shoppers Are Driving

A LatAm eCommerce
Boom 75% 74%
Deliver to home Deliver to home
Shoppers in Argentina, Bolivia, Brazil, Mexico and

17%
Pick up in-store
18%
Pick up in-store
countries all across Latin America are driving an
eCommerce surge, owing in large part to the shut-
down of brick-and-mortar retail during the pandemic.
These consumers’ habits are comparable to those in 7%
Ship to a location
6%
Ship to a location
other countries around the world when it comes to
online shopping: eCommerce shoppers in Brazil and to pick up to pick up
Mexico, for example, prefer their online orders to be
1% 3%
sent to their homes, although picking up in-store
and curbside are also popular options.
Pick up curbside Pick up curbside
Source: PYMNTS
The 2022 Global Digital Shopping Index: Mexico Edition, August 2022
N = 5,242: Online shoppers, Sept. 23, 2021 - Nov. 7, 2021
Need To Know
QR code payment
service users in
Brazil and Argentina
Digital payments are

growing fast in the region,
threatening to overtake
cash as the preferred
payment method. 130M+ users
One study revealed that mobile bank accounts in Latin

America increased by 67% in 2020, and QR codes are also
quickly gaining ground. Brazil’s Pix system, operated by its
central bank, attracted 60% of the country’s population in
its first 10 months, and Argentina’s Mercado Pago processed
more than 8.5 million QR code payments since its launch in
2018. 20M users
Need To Know
Year-over-year increase
in international
International eCommerce commerce in 2021
is the wave of the future
in Latin America. 59%
Mexico
International eCommerce is growing faster than domes-
45%
tic eCommerce all across the region, another development
that can be attributed to the ongoing pandemic. Customers
shopping from the comfort of their own homes do not care
where their goods originate from, and merchants from far-
Colombia
flung countries often can offer better prices than domestic
sources. Last year saw huge boosts in cross-border pur-
chases in Chile, Colombia, Mexico and more.
37%
Chile
News And Trends

One-third of tech startups
in Bolivia are dedicated to
eCommerce, survey finds
Latin American
B2C eCommerce Latin America is shaping up to be a hot spot for new retail trends,
with a recent survey finding that 29% of technology startups in
Market To Hit
Bolivia are geared toward eCommerce. This was the largest cat-
egory of startups surveyed, outpacing fields such as general
technology, logistics, FinTech and education technology, which,
$164B This Year all told, added up to 70% of the country’s new businesses.
eCommerce is soaring across Latin America,

with experts predicting the region's business-to-
consumer (B2C) market to grow by 19% this year
to reach $164.1 billion in 2022 and $284.8 billion by
2026. Several factors are driving this growth, espe-
cially mobile commerce and international shopping.
29% 21% 15%
Brazil, in particular, is an anchor point for the region, eCommerce General Logistics
where mobile commerce has recorded strong growth technology
in the past several years due to social commerce
and sales livestreams, which reach millions of con- Startup culture, in general, is seeing a surge in Bolivia, with 2022
sumers across the country. adding 185 startups, almost double that over previous years.
These ventures have attracted significant international fund-
ing, according to the survey, solidifying Bolivia as a prominent
regional tech hub for the near future.
News And Trends
Social media accounts for

42% of online purchases in
Ecuador
LatAm consumers are turning to unorthodox channels for
online shopping. In Ecuador, for instance, a recent study found
that 42% of online purchases are done via social media, fol-
lowed by 27% via WhatsApp, 17% on eCommerce websites
and 15% on other apps.
Purchasing via smartphone was by far the most common

eCommerce method found in the study, accounting for 80%
of purchases. Experts say that eCommerce surged in Ecuador
during the pandemic, with just 200 electronic payment
methods existing before 2020 and 5,000 now in operation.
PYMNTS Intelligence Countries all across the region are embracing eCommerce, but
several stand out for their high sales volume, strong growth and
significant upward potential, including Brazil, Chile and Mexico.
Several trends are driving this growth, including increased
domestic and cross-border spending, greater market pene-
Challenges And tration of digital goods and an increased acceptance of digital

payments.
Opportunities
For eCommerce Each LatAm country has
its own eCommerce and
In Latin America payment trends that retailers
Latin America is a burgeoning market for eCommerce, with a recent
need to be aware of.
report pegging its value at $382 billion, representing a 35% growth
from 2021. Some experts are even projecting a 25% growth in vol- Argentina, for instance, is notable for being hesitant when
ume between 2021 and 2025, including B2C commerce, cross-border accepting new payment methods, with less than half the coun-
purchases, travel and digital goods, for a final total of more than try’s consumers saying they would be willing to try a new
$700 billion. This growth is due in large part to the rise of real-time payment technology such as digital wallets. Merchants in Mexico
payments across the region, as well as eCommerce marketplaces’ are taking advantage of the population’s preference for mobile,
emergence as winners in the pandemic-fueled competition for a with 68% of retailers offering inventory information on their
convenient shopping and payments experience. apps and 72% offering mobile ordering and delivery, more than
any other country in the region.
PYMNTS Intelligence
eCommerce Market Growth In Select

LatAm Markets Through 2025
ARGENTINA BRAZIL CHILE COLOMBIA MEXICO PERU
2021 Value $18B $153B $15.7B $22.4B $48.6B $13B
COMPOUND ANNUAL
GROWTH RATE 32% 22% 19% 26% 24% 21%
THROUGH 2025
PYMNTS Intelligence
Real-time payments Retailers need to be

are one of the major cognizant of the variable
driving forces behind the regulatory landscape
eCommerce boom. across Latin America.
These payment systems are popping up all over Latin America Each country’s regulations differ, so no business plan can be
and have been a clear success: Costa Rica’s Sinpe Móvil pro- one-size-fits-all. Ecuador is currently taking its initial steps
gram, for example, saw $6.5 billion in transactions in 2021, four toward regulating FinTechs, for example, while Argentina and
times what it experienced in 2020. Peru’s Yape system is no Chile have a much more established digital payments scene
less successful, seeing 8 million users leveraging its debit card- and are shaping their legislation accordingly. Argentina is imple-
based design. Brazil’s Pix system might be the biggest hit of all, menting a digital payments promotion from its central bank,
however, clocking in at 100 million users in its first 10 months of whereas Chile’s congress is establishing a regulatory framework
operation, representing 60% of the country’s population. eCom- to monitor crowdfunding, alternative transaction systems and
merce in Latin America owes a huge fraction of its growth to credit advisory.
the ubiquity and ease of use of these instant payment models.
Chart Of The Month
Brazil’s Online
Purchasing Trends
Payment methods for digital purchases
Share of consumers using select payment methods for

Brazil is a trendsetter among Latin American coun- digital purchases
tries, and its eCommerce patterns could forecast
Credit card Card on file
the entire region. Brazilians prefer credit over debit 62.4% 0000000000
4.1% 0000000000
for online purchases, with credit comprising 62% of 37.4% 20.1%

0000000000 0000000000
these transactions and debit cards just under 14%. 13.5%

Debit card
0000000000
7.0%
Digital wallets
0000000000
Newer options such as digital wallets have been 23.0% 0000000000

9.7% 0000000000
slow to gain steam, accounting for just 7% of digital Boleto bancário Other
8.7% 0000000000
2.1% 0000000000
orders. eCommerce providers looking to break into N/A 4.4% 0000000000
the LatAm space should make accommodations for Store card

Brazil
2.1% 0000000000
credit card use to incentivize customers. 5.6% 0000000000 U.S.
Source: PYMNTS
Global Digital Shopping Index: Brazil Edition, March 2021
N = 2,105: Brazilian consumers; N = 502: Brazilian merchants, Nov. 25, 2020 - Dec. 16, 2020
Insider POV
How eCommerce PYMNTS talks with Karen Bruck, vice
Can Unlock The president of commerce and strategic

initiatives at Mercado Libre, about the
Latin American unique opportunities and challenges in
Latin American eCommerce.
Retail Scene
Latin America’s eCommerce market is expanding rapidly,
especially as the pandemic has radically altered con-
sumers’ shopping habits. Brick-and-mortar shopping was
Any [eCommerce previously the name of the game, but eCommerce shop-
ping skyrocketed when social distancing became the norm.
merchant] who wants
to play in LatAm has to “eCommerce penetration [before the pandemic] was way
lower [in Latin America] than in the U.S. or other regions,
be able to include many such as Asia or China, in particular. eCommerce pen-
forms of payment: not etration more than doubled in Latin America during the
pandemic, but the biggest difference from other regions is
only a credit card, but that it never stopped growing.”
KAREN BRUCK
also QR codes and even
Vice president of commerce
and strategic initiatives the ability to pay cash at
certain kiosks.
Insider POV
Foreign merchants looking to gain a foothold in this quickly grow-

ing market must first understand its particulars, however. Bruck
warned that it would be unwise to view the Latin American eCom-
merce landscape as a monolith and not as the incredibly diverse set
eCommerce penetration in
of countries and consumers that it is. Latin America before and
“Latin America is very fragmented, and the regulations in each one after the pandemic began
of the countries are different. If you go to Brazil, you will have a
completely different market from the one in Mexico, Argentina or
Colombia, and also different regulations in terms of how to invoice
and import products.” eCommerce penetration was
5% to 7% in Latin America
The current Latin American retail market exists primarily offline,
but ongoing trends promise a digitized future. Moving more of the
before the pandemic.
retail market online could drastically reduce the barriers for new
merchants to enter the market by lowering startup costs, since they
Most eCommerce providers
could simply operate a website.
more than doubled their
“In a region where 90% of retail transactions are being conducted penetration in the region
offline in ways that are usually not as efficient, we believe [eCom-
merce] has a very important role in moving the needle there, making during the pandemic.
sure that all the buyers and sellers can operate in a much more effi- Source: Karen Bruck, vice president of commerce and strategic initiatives, Mercado Libre
cient fashion.”
Insider POV
What are the three biggest obstacles

facing merchants that wish to sell DANIEL PASSARELLI
across Latin America? Executive managing director
for Latin America
1. The payment landscape: Understanding

the importance and relevance of local
and alternative payment methods
Accepting only credit and debit cards from the major global card A. Domestic versus international cards
issuers will not be enough in Latin America. Offering local payment In Latin America, the concept of domestic cards is common. While
methods is the golden ticket to expanding globally by gaining access cards issued in Europe and North America are usually accepted
to the entire population and enabling customers to pay for purchases internationally, domestic cards in Latin America are restricted to
with methods they have access to and are familiar with. As an exam- local currency purchases. Even international brands like Visa and
ple, we have Elo, a local card brand founded by the three largest Mastercard can be restricted to purchases in local currencies only. In
banks in Brazil 10 years ago. They have close to 15% of the market other words, if merchants enter the market via cross-border acquir-
share, competing with global giants Visa and Mastercard. Through ers, it is very likely that nearly 50% of their clients will be left on the
local processing with local acquirers, merchants can accept pay- table, as domestic cards represent 49.6% of the market overall.
ments from all domestic and international cards in Latin America.
With that, they can increase approval rates.
Insider POV
B. Alternative payment methods 2. Low banking services

Alternative payment methods such as cash, Pix, debit cards and
Boleto play an important role in the Latin American payment land- In some countries in Latin America, less than 50% of the
scape. They allow the unbanked or those without credit cards to population has a bank account, which makes it really diffi-
make purchases online. These payment methods don’t cannibalize cult for merchants to offer only cards as payment methods.
the credit card payment option.
C. Installment payments
Using installment payments for purchases made with local credit 3. Local regulations and bureaucracy
cards is a common practice in Latin America. Consumers are used
Understanding the tricky government regulations can be com-
to using installments to pay for any goods or services. By paying in
plex and can be another major roadblock, as regulations and
installments, buyers benefit from greater purchasing power and a
rules are different from country to country in the region. It
lower impact on their monthly budgets. This is huge: More than 57%
is impossible to avoid those regulations, however, and that’s
of eCommerce payments in Brazil are made in installments.
why it’s really important to have the right partners and the
right counseling for that.
Companies To Watch
International Firms
Make Big Moves In
Latin America
The eCommerce giant is making a big Managed marketplace Flatfee is also Shopee is taking a different approach
push into Latin America, with its online making a bid for Latin America by to Latin American eCommerce, shut-
store entering Chile and Colombia in launching new websites in Spanish and ting down operations in Chile, Colombia
2023. This corresponds with a world- Portuguese, the dominant languages and Mexico to focus on cross-border
wide campaign into several countries in the region. This will potentially operations. The company will continue
that did not previously have Amazon afford Latin American sellers a much to operate in Brazil, but how this shift
access, including Belgium, Nigeria larger reach for their products and in strategy will affect Latin American
and South Africa, further expanding help with foreign trademarks and tax customers remains to be seen.
Amazon’s global reach. requirements.
What’s Next
LatAm Could Be A
Pioneer In Cashless
Tourism
Latin America’s digital payments boom could be welcome
news for travelers from abroad, thanks to the convenience
of making and accepting payments in any currency. Experts
predict that the rise in digital payments could fuel further
tourism in the region, driven by a 67% year-over-year growth
in mobile bank accounts and a 53% rise in contactless pay-
ments. The region could face obstacles when it comes
to international money transfers, however, as payments
between the U.S. and LatAm have historically been cumber-
some. Digital payments providers would be well-served by
simplifying these transfers to further stimulate the tourism
industry.
About Disclaimer
PYMNTS is where the best minds and the best content meet The Global Commerce Tracker® Series may be updated periodically. While reasonable efforts
on the web to learn about “What’s Next” in payments and are made to keep the content accurate and up to date, PYMNTS MAKES NO REPRESENTA-
commerce. Our interactive platform is reinventing the way TIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS,
in which companies in payments share relevant information ACCURACY, COMPLETENESS, ADEQUACY, OR RELIABILITY OF OR THE USE OF OR RESULTS
about the initiatives that shape the future of this dynamic THAT MAY BE GENERATED FROM THE USE OF THE INFORMATION OR THAT THE CONTENT
sector and make news. Our data and analytics team includes WILL SATISFY YOUR REQUIREMENTS OR EXPECTATIONS. THE CONTENT IS PROVIDED “AS IS”
economists, data scientists and industry analysts who work AND ON AN “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE THAT YOUR USE OF THE CON-
with companies to measure and quantify the innovation that TENT IS AT YOUR SOLE RISK. PYMNTS SHALL HAVE NO LIABILITY FOR ANY INTERRUPTIONS IN
is at the cutting edge of this new world. THE CONTENT THAT IS PROVIDED AND DISCLAIMS ALL WARRANTIES WITH REGARD TO THE
CONTENT, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, AND NON-INFRINGEMENT AND TITLE. SOME JURISDICTIONS DO NOT
Worldline is a global leader in secure payments and trusted ALLOW THE EXCLUSION OF CERTAIN WARRANTIES, AND, IN SUCH CASES, THE STATED EXCLU-
transactions. We are at the forefront of the digital revolution SIONS DO NOT APPLY. PYMNTS RESERVES THE RIGHT AND SHOULD NOT BE LIABLE SHOULD
that is shaping new ways of paying, living, doing business and IT EXERCISE ITS RIGHT TO MODIFY, INTERRUPT, OR DISCONTINUE THE AVAILABILITY OF THE
building relationships that pass on trust along the entire pay- CONTENT OR ANY COMPONENT OF IT WITH OR WITHOUT NOTICE.
ments value chain, enabling sustainable economic growth.
Our innovative solutions, rooted in a rock-solid technologi- PYMNTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, AND, IN PARTICULAR, SHALL
cal base, are environmentally friendly, widely accessible and NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, OR
support social transformation. DAMAGES FOR LOST PROFITS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR
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November 2022

Read the previous edition

Global Commerce Tracker ® Series

• Latin America • Social Media • One Region, • International

What’s Inside 22 How eCommerce Can Unlock The Latin

20 Brazil’s Online Purchasing Trends

Shoppers Are Driving

Shoppers in Argentina, Bolivia, Brazil, Mexico and

Pick up curbside Pick up curbside

Digital payments are

One study revealed that mobile bank accounts in Latin

International eCommerce is growing faster than domes-

News And Trends

eCommerce is soaring across Latin America,

News And Trends

Social media accounts for

Purchasing via smartphone was by far the most common

Challenges And tration of digital goods and an increased acceptance of digital

eCommerce Market Growth In Select

ARGENTINA BRAZIL CHILE COLOMBIA MEXICO PERU

2021 Value $18B $153B $15.7B $22.4B $48.6B $13B

Real-time payments Retailers need to be

Chart Of The Month

Share of consumers using select payment methods for

for online purchases, with credit comprising 62% of 37.4% 20.1%

these transactions and debit cards just under 14%. 13.5%

Newer options such as digital wallets have been 23.0% 0000000000

orders. eCommerce providers looking to break into N/A 4.4% 0000000000

the LatAm space should make accommodations for Store card

credit card use to incentivize customers. 5.6% 0000000000 U.S.

How eCommerce PYMNTS talks with Karen Bruck, vice

Can Unlock The president of commerce and strategic

Foreign merchants looking to gain a foothold in this quickly grow-

What are the three biggest obstacles

1. The payment landscape: Understanding

B. Alternative payment methods 2. Low banking services

SOME JURISDICTIONS DO NOT ALLOW FOR THE LIMITATION OR EXCLUSION OF LIABILITY

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