Latin America Online Payment Methods 2020 and COVID-19's Impact

Latin America Online Payment Methods 2020 and COVID-19’s Impact code:1478

OVERVIEW

TABLE OF CONTENTS

COMPANIES MENTIONED

Countries Covered: Argentina, Brazil, Chile, Colombia, Dominican Republic, Mexico, Peru

Pages: 87

Publication Date: 28/04/2020

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Questions Covered in the report:

What are the leading E-Commerce payment methods in Latin America?
How does the COVID-19 pandemic influence the development of digital payments in this region and worldwide?
How high is mobile payment user penetration in Latin America predicted to be by 2023?
Which mobile payment apps are used by consumers in Argentina, Brazil and Mexico?
What was the size of payment transactions processed by Mercado Libre in 2019?

Key Findings:

Latin America’s Online Payment Market Influenced by COVID-19 Pandemic

Cards Leading in Latin American E-Commerce Payments

The top payment method used by online shoppers in Latin America is bank card, according to recent surveys cited in the yStats.com report. However, due to a significant share of this region’s population lacking access to formal financial services, cash payments are also popular in countries including Argentina, Colombia, Mexico, and Peru. In Brazil, a local alternative payment method Boleto Bancario ranks second after credit card. At the same time, as large online verticals such as travel as well as in-store electronic payments are negatively affected by the pandemic, overall payments revenues worldwide are projected to decline in 2020 and resume growth in 2021.

COVID-19 Drives Digital and Mobile Payments in Latin America

Following the coronavirus outbreak, online shopping transactions received a boost in many countries of Latin America, as in-store visits are avoided or limited by lockdown regimes. As a result, online card payment transactions are on the rise, more than doubling in Chile during the last week of March alone, according to statistics referenced in the yStats.com report. In Brazil, FinTechs are helping to distribute financial aid to those affected by the coronavirus. Furthermore, proximity mobile payment user penetration in Latin America, currently reaching just over one in ten smartphone owners, could be further boosted as consumers and merchants attempt to avoid handling cash.

Competition in Latin American E-Payments Intensifies

Mercado Pago has emerged as a leading digital payment solution in Latin America. The payment service offered by Argentina-based E-Commerce giant Mercado Libre processed more payments outside of the Mercado Libre marketplace than on this platform last year. Among mobile payment services, other popular solutions include PayPal and Google Pay.

1. Management Summary

2. Global Developments

COVID-19 Impact on Online & Mobile Payment, April 2020
The Impact of COVID-19 on Payments Revenues, incl. Payments Revenues in 2019, Pre-COVID-19 Forecast, and Payments Revenues Forecast Under The Impact of COVID-19, in USD billion, 2020
Online & Mobile Payment Platform Revenues, in USD billion, 2019e & 2024f
Mobile & Online Remote Payment Value, in USD billion, by Selected Regions, 2024f
Mobile & Online Remote Payment Value, in USD billion, by Digital and Physical Goods, 2024f
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, by Selected Regions, January 2019
Share of Online Shoppers Who Had Abandoned a Shopping Cart Due to Their Preferred Payment Method Not Being Offered, in %, January 2019
Share of Mobile Shoppers Who Had Abandoned a Shopping Cart Due to Their Preferred Payment Method Not Being Offered, in %, August 2019
Online Payment Fraud Losses, in USD million, by Segment, 2023f
Online Payment Fraud Prevention Software Spending, in USD billion, 2020f & 2024f
Number of Digital Wallet Users, in billions, 2019e & 2024f
Breakdown of Digital Wallets by Provider’s Main Industry, in %, 2019
Proximity Mobile Payment Users, in billions, and Penetration, in % of Smartphone Users, 2018 – 2023f
Proximity Mobile Payment User Penetration, in % of Smartphone Users, by Selected Countries, 2019e
Value of Mobile Payment Transactions Authenticated via Biometrics, in USD billion, 2019e & 2024f

3. Latin America

3.1. Regional

The Impact of COVID-19 on Online Payments in Latin America, April 2020
Payment Methods Used in E-Commerce, By Selected Countries, in % of Online Shoppers, July 2019
Factors Affecting Security Perception During E-Commerce Purchase On A New Website, By Selected Countries, in % of Online Shoppers, July 2019
Share of Online Shoppers Who Frequently Encounter Two-Factor Authentication, And Preferred Authentication Measures, % of Online Shoppers, July 2019
Preferred Future Features of Online Payments, in % of Online Shoppers, by Selected Countries, 2019
Mobile Payment User Penetration, in % of Internet Users With a Bank Account, 2018 & 2019
Types of Mobile Payments Used In-Store, in % of Mobile Payment Users, by Selected Countries, July 2019
Proximity Mobile Payment Users, in billions, and Penetration, in % of Smartphone Users, 2018 – 2023f
Selected Mobile Payment Apps Used, incl. Penetration, in % of Devices, and Active Users, in % of All Users, by Argentina, Brazil and Mexico, July 2019
Mercado Pago’s Payment Transaction Value by Transactions On The Mercado Libre Marketplace and Non-Marketplace Payment Value, in USD million, 2015 – 2019

3.2. Brazil

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Breakdown of E-Commerce Orders by Payment Methods, in %, H1 2019
Breakdown of the Number of Payment Installments Used, in % of E-Commerce Orders, H1 2018 & H1 2019
Average Attempted Fraud Share, in % of E-Commerce Sales, 2019
Top 3 Product Categories by Attempted Fraud Share, in % of E-Commerce Sales, 2019
Share of Adults Who Used Credit Card From a FinTech, in %, 2019
Breakdown of Payment Methods Used in M-Commerce, in % of Mobile Shoppers, August 2019
Most Important Features in M-Commerce Apps, incl. Payment-Related, in % of Mobile Shoppers, September 2019
Proximity Mobile Payment User Penetration, in % of Smartphone Owners, August 2019
Proximity Mobile Payment User Penetration, in % of Smartphone Owners, by Age Group, August 2019
Selected Mobile Payment Apps Used, incl. Penetration, in % of Devices, and Active Users, in % of All Users, July 2019

3.3. Mexico

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Preferred Two-Factor Payment Authentication Options During Online Shopping, in % of Online Shoppers, July 2019
Number of Authorized Payment Transactions on E-Commerce Websites, in millions, Value, in MXN billion, and Authorization Rate, in % of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2018 – Q3 2019
Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their Value, by Credit Cards and Debit Cards, Q1 2018 – Q3 2019
Breakdown of Total Authorized E-Commerce Payment Volume By Debit and Credit Cards, in %, Q1-Q3 2019
Share of Online Shoppers Preferring to Use Debit Card to Pay for Small Online Purchases, in %, May 2019
E-Commerce Share of Total Card Payments, in %, Q1-Q3 2019
Proximity Mobile Payment User Penetration, in % of Smartphone Users, 2019
Selected Mobile Payment Apps Used, incl. Penetration, in % of Devices, and Active Users, in % of All Users, July 2019

3.4. Argentina

Breakdown of Payment Methods Preferred in E-Commerce, in %, 2019
Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Preferred Two-Factor Payment Authentication Options During Online Shopping, in % of Online Shoppers, July 2019
Proximity Mobile Payment User Penetration, in % of Smartphone Users, 2019
Selected Mobile Payment Apps Used, incl. Penetration, in % of Devices, and Active Users, in % of All Users, July 2019

3.5. Colombia

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Share of Online Shoppers Preferring to Use Debit Card to Pay for Small* Online Purchases, in %, May 2019

3.6. Chile

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Year-on-Year Change in Online Card Payment Transactions, in %, H1 2016 – H2 2019
Year-on-Year Change in Card Payment Transactions, by Online and in-Store, in %, Week 1 – Week 4 of March 2020
Online Share of Card Payments, in %, Week 1 – Week 4 of March 2019 & 2020

3.7. Peru

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Breakdown of Online Purchases by Payment Methods Used, in %, 2019
Payment Services Used to Make Purchases Online, in % of Entrepreneurs, 2019

3.8. Dominican Republic

Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2019
Domestic E-Commerce Transactions with Payment Cards, incl. Number, in thousands, and Value, in DOP million, by Card Type, 2018 & 2019
International E-Commerce Transactions with Payment Cards, incl. Number, in thousands, and Value, in DOP million, by Card Type, 2018 & 2019

Alphabet Inc.
Cielo
Mercadolibre Inc.
PagSeguro Digital Ltd.
PayPal Holdings Inc
Samsung Co. Ltd.
Walmart Inc.

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