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LATAM ecommerce market set to grow 25% by 2027

Thursday 21 September 2023 09:34 CET | News

A recent PayU GPO report has found that the LATAM ecommerce market is set to increase 25% in volume by 2027.


Through the annual ecommerce report, PayU GPO observed a considerable 2.8x increase in sales value and a 3.1x growth in overall number of transactions between 2019 and 2023. This resulted in a current total value of USD 364 million, compared to USD 117 million at the beginning of the analysed period. 

A recent Pay GPO report has found that the LATAM ecommerce market is set to increase 25% in volume by 2027.

 

LATAM’s ecommerce market expansion

The Latin American region currently has 300 million digital buyers, with the number projected to surge by over 20% by 2027. The rapid expansion highlights the region’s position as a pivotal market, driven by the increasing internet access and the growing economy. Between 2019 and 2022, the number of shoppers in Latin America using PayU to complete ecommerce payments doubled, rising to 29.3 million from 15.3 million. Furthermore, the number is expected to continue to grow in the following months, reaching a projected 33.9 million by 2024.

The thriving regions of Latin America, including Argentina, Brazil, Chile, Colombia, Mexico, and Peru, are expected to see a 25% surge in ecommerce market volume, fortifying the region’s status. The report also revealed that Brazil and Mexico are set to dominate the Latin American ecommerce market with projected Compound Annual Growth Rates (CAGR) of 77.2% and 68.2% by 2027 despite inflation.

Moreover, the report showed that the business-to-consumer (B2C) ecommerce market is expected to surpass USD 7.5 trillion by 2030, enabling considerable opportunities for merchants to tap additional audiences by offering their products and services in new markets. Abroad online purchases accounted for approximately 25% of all acquisitions in Colombia in 2022, providing a solid reason for accepting cross-border payments.

The democratisation of the internet increased online sales by offering consumers unprecedented access to information, with users being able to research products, compare features, and explore multiple vendors. As a response, potential buyers better equipped themselves to make confident purchasing decisions, increasing online sales. This is supported by Chile which saw significant ecommerce growth in 2022, considering its 88.2% internet penetration, an above-average level for the region. 

Most used payment methods

PayU GPO’s report also revealed the most popular ecommerce payment methods across Latin America in 2022, with credit cards being the leader in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. Globalisation influenced this area, with bank transfers and real-time payments substantially expanding within the region, driven by platforms such as PIX in Brazil. This change decreased cash reliance, while online shopping accessibility increased the levels of inclusivity for communities traditionally excluded. The report validated this trend, highlighting that bank transfers are increasing in use and currently are the second most popular ecommerce payment methods in Brazil and Mexico.

About PayU GPO

Online payment service provider PayU GPO currently operates in over 30 high-growth markets, including Latin America, Africa, and Eastern Europe, its goals being to create financial services tailored to the needs of merchants and customers.

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Keywords: online payments, payments , payment methods, cross-border payments, ecommerce, cross-border ecommerce
Categories: Payments & Commerce
Companies: PayU
Countries: Latin America
This article is part of category

Payments & Commerce

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