Discover the explosive growth and future potential of e-commerce in Latin America as outlined in PayU GPO’s latest report.
The online payment service company PayU GPO has published its LatAm E-Commerce Report 2023, which examines e-commerce in Latin America. It shows that between 2019 and 2012, there were 3.1 times as many transactions in the region overall, going from $117 million to $364 million.
PayU GPO, which has already witnessed notable success in the region, anticipates more expansion throughout LatAm. By 2027, it projects that the amount of its e-commerce business may increase by 25% throughout countries like Argentina, Brazil, Chile, Colombia, Mexico, and Peru. securing Latin America’s place among the e-commerce markets with the fastest development worldwide.
According to the research, despite inflation, Brazil and Mexico are expected to have the highest compound annual growth rates—77.2% and 68.2%, respectively—by 2027, positioning them to lead the Latin American e-commerce sector.
Overall, from 15.3 million in 2019 to 29.3 million in 2022, the number of Latin American consumers who use PayU to make online payments has more than doubled. PayU added that it anticipates this figure to increase even further, reaching about 33.9 million by 2024.
In spite of the fact that many Latin American consumers are already making their first online purchases, credit cards are still the most popular method of payment in Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
As could be expected, as more people who were previously excluded from internet buying have gained access to it, the need for cash has declined. As a result, according to the PayU research, bank transfers are currently the second most common e-commerce payment method in Mexico and Brazil, powered by platforms like PIX in Brazil.
Latin America has become a crucial market in the e-commerce industry
“We have seen the Latin American e-commerce market quickly adapt to recent macroeconomic trends, offering innovative digital offerings to meet changing consumer demands and growing at a rapid pace,” said Daniel Cohen, CEO of PayU GPO.
Latin America has consequently become a crucial market in the e-commerce industry. PayU’s cross-border payment solutions are made to assist merchants in growing their operations and efficiently handling payments across the area. There are numerous chances for merchants seeking to take advantage of the rapidly expanding Latin American market.
“Fuelled by the surging e-commerce landscape and a population adept in digital trends, LatAm presents incredible growth potential despite short-term macroeconomic headwinds including inflation and recession,” stated Federico Balige, CEO of PayU LATAM.
“PayU GPO has helped the economy of Latin America thrive. Offering a wide range of digital financial solutions, we have been a dependable partner for market players of all sizes, ensuring their integration into the financial ecosystem.
PayU GPO, a dependable and trustworthy partner for the expansion of e-commerce, is in a unique position to assist expansion-oriented retailers in adapting to the constantly shifting tastes of their clientele by providing them with the familiar and trustworthy local payment options.
