Cash-based options still respond for up to 20 percent of digital commerce in LATAM, EBANX reveals

EBANX has revealed in its new study that cash-based payments are still very relevant for digital commerce in LATAM, and represented up to 20% of ecommerce volume in 2020.

According to the press release, new payment methods such as digital wallets have advanced in the region's ecommerce. AMI (Americas Market Intelligence), one of the partners of the study, revealed that e-wallets had a 32% growth rate in Chile and 20% in Colombia, pushed by smartphone penetration and the distribution of emergency aids through digital accounts. In Brazil, they represented 12% of online purchases in 2020. 

Besides, debit cards were also a highlight in Brazil's ecommerce. Driven by a new authentication protocol and also by emergency aids, they had a 16% growth rate in 2020. Additionally, in Mexico, bank transfers had the most expressive growth rate: 20%.

Despite that, LATAM is still is far from being a cashless economy, as cash based-methods proved to be very relevant in and represented up to 20% of online purchases during the pandemic. In Mexico, for example, OXXO, a widespread cash-voucher that can be paid in more than 17,000 stores across the country, was the third most relevant payment method in 2020. In Colombia, cash vouchers grew up by 17%, and in Brazil, they added up to USD 16.3 billion in online purchases, or 15% of the market's total volume.

These traditional and widespread local payment methods also grew in international ecommerce. For instance, in Brazil, 68% of consumers mentioned boleto bancário as their preferred payment method for cross-border purchases, according to a survey conducted by Beyond Borders 2020/2021.

A deep dive into EBANX's data, also compiled in the study, revealed that in 2020 there was an impressive growth of cash-based methods in some countries where EBANX operates, processing payments for global companies such as AliExpress, SHEIN, Uber, Spotify and Airbnb. In Brazil, for example, cash-based payments went from an average of 20% to 30% of total TPV throughout 2020.

Overall, ecommerce in LATAM is expected to grow by 8.49% in 2020 and accelerate 19% in 2021, becoming one of the fastest-growing markets in the world. Based on data from the main players in the sector in a partnership with AMI (Americas Market Intelligence), in addition to a survey with 3,280 consumers in the region and internal EBANX data, Beyond Borders 2020/2021 was dedicated to understanding the impacts of COVID-19 on online purchases in the region, with focus on four LATAM countries: Brazil, Mexico, Colombia, and Chile.