EBANX's study reveals trends for payments in LATAM in 2021

Tuesday 12 January 2021 10:07 CET | News

EBANX's study – Beyond Borders 2020/2021 – has revealed that 2021 should cement trends such as instant payments, digital wallets, and mobile shopping in Latin America.  

The fintech company annual report presents an overview of digital commerce in LATAM after the COVID-19 pandemic, based on data from AMI (Americas Market Intelligence, one of the partners of the study), internal data from EBANX, and a survey conducted with approximately 3,000 Latin American consumers.

Beyond Borders highlights five trends for payments in Latin America in 2021:  

  • Instant payments move forward to ecommerce – In Brazil, PIX's (the instant payment system that had over 90 million transactions in its first month) cost-free, instant transactions already represent almost a third of transfers between individuals. With the launch of new features by the first quarter of 2021, PIX is expected to spread on Brazilian e-commerce as well. Mexico's CoDi, the instant payment system launched in 2019, is also being explored by retailers, payment providers, and fintechs for digital commerce.

  • Digital wallets – Products such as PicPay in Brazil, MACH Pay in Chile, and Nequi in Colombia gained millions of users, and are now widely accepted in physical and digital stores. Beyond Borders study reports that e-wallets had a 32% growth rate in Chile and 20% in Colombia in 2020, pushed by smartphone penetration and the distribution of emergency aids through digital accounts. In Brazil, they represented 12% of online purchases in 2020, and should continue to grow in 2021 regionwide. 

  • Mobile shopping and apps on the rise – In Mexico, for example, more than 80% of consumers surveyed by Beyond Borders made purchases on smartphone apps in the last six months. In Colombia, mobile purchases increased by 22% in 2020, and already represent half of the total ecommerce volume in the country, according to AMI figures.  

  • Old habits die hard: boleto and cash payments – Cash-based payments proved to be still very relevant in LATAM, representing up to 20% of online purchases during the pandemic. In Mexico, OXXO, a cash-voucher that can be paid in physical stores across the country, was the third most relevant payment method in 2020. In Brazil, 68% of consumers mentioned boleto bancário as their preferred payment method for cross-border purchases, and, in Colombia, cash vouchers grew up by 17% on ecommerce volume last year.

  • Debit cards in Brazil – Debit cards were a hit in Brazil's ecommerce in 2020: driven by a new authentication protocol and the use of emergency aids, they had a 16% growth rate in the country. In countries such as Mexico and Chile, debit cards represent 23% and 31% of ecommerce volume, respectively – whereas in Brazil this number is only 6%. 

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Keywords: payments trends, Latin America, EBANX, Beyond Borders, study, instant payments, digital wallets, mobile payments, ecommerce, Boleto, cash payments, debit cards
Categories: Payments & Commerce
Countries: Latin America
This article is part of category

Payments & Commerce