Latin America Online Payment Methods 2021 Post COVID-19

Latin America Online Payment Methods 2021 Post COVID-19

Cashless transactions in Latin America were projected to more than double from 2020 to 2030: new yStats.com report.

The latest publication from Germany-based online research firm yStats.com, “Latin America Online Payment Methods 2021 Post COVID-19” provides insights into the current state and future trends of online payment market in Latin America. Among other findings, the publication reveals that in Latin America, a smartphone was the most preferred device to use when shopping online in 2020.

Global payment market shifted towards cashless transactions significantly due to COVID-19 in 2020
The global payment market has been fundamentally affected by the COVID-19 health crisis across different industries internationally. Because of forced limitations by the administrations in many nations, the conventional payment structures moved to digitalized ones as they were safer, quicker and more convenient in the midst of COVID-19 in 2020. Consumers in most countries shifted their preferences towards mobile payments, therefore businesses strived to provide them with experiences on digital- or mobile-first platforms. After the onset of the pandemic, consumers turned to the types of payments where there was less interaction, thus, cashless transactions were projected to increase twofold globally by 2030, with the Asia-Pacific region leading in them. Whereas, the two lagging regions were Africa and Latin America. Most of these non-cash payment value was expected to be held by contactless cards in 2020.

Mobile payments gained momentum in Latin America in 2020, with over 70% of Mercado Libre online sales made via a mobile device
Amid the pandemic, Latin American consumers mostly opted for smartphones when shopping online, and with such usage growing 2019 to 2020. Mercado Libre, a major online retail player in the region, reported that over 70% of sales were made via mobile in 2020. The value of digital purchases via mobile spiked in Brazil by almost 80% from 2019 to 2020. However, there were also consumers who avoided mobile payment apps, as around a quarter of respondents to a survey in Brazil reported that they believed they were unsafe or that they did not know how they worked.

“Credit card” was the most common payment method among Latin Americans in 2020 when shopping both online and in-store
After the COVID-19 pandemic started, there was a downward trend in cash usage in Latin America, with over 60% of consumers reducing the use of cash by at least 20% in 2020. The biggest share of those who decreased using cash was seen in Chile, where more than 70% of customers reported paying less with cash. The most common payment method in the region for both online and offline purchases was a “credit card”. Real-time payments also gained momentum in Latin America in 2020, with the fastest growth of RTP transactions projected to be seen from 2020 to 2025 in Colombia, at a CAGR of over 100%, and in Peru, at a CAGR of more than 70%.


1. Management Summary
2. Global Developments
Post-COVID-19 Online & Mobile Payment Market, August 2021
Post-COVID-19 Online & Mobile Payment Market, August 2021
Number of Cashless Transactions, in billions, CAGR, in %, 2020, 2025f & 2030f
Value of Contactless Card Transactions, in USD trillion, 2020 & 2021e
Value of Virtual Card Transactions, in USD trillion, 2021e & 2026f
Value of Buy Now Pay Later Transactions, in USD billion, 2021e & 2026f
Breakdown of Opinions on Whether Blockchain Will Replace Current Payment Schemes in the Next 10 Years, in % of Respondents, 2020
Share of Contactless Card Transactions, in % of Overall Contactless Transaction Value, 2021e
Top Low-Value Payment Methods That Will Be the Most Used in a Country, in % of Respondents, 2020
Top 10 Countries’ B2C E-Commerce Sales, by B2C E-Commerce Sales Growth, in % Y-o-Y Change, 2020e
B2C E-Commerce Year-on-Year Growth Rate, by Region, in %, 2020e
Internet Penetration Rate, in % of Households, 2020
Proximity Mobile Payment Users in Select Countries, in % of Smartphone Users, 2021e
Value of Losses Due to E-Commerce Fraud, in USD billion, 2020 & 2021e
Number of Users Making Online Payment With Facial Recognition, in billions, 2020 & 2025f
Number Of Users Who Will Be Confirming Transactions With Voice Recognition, in millions, 2020 & 2025f
3. Latin America
3.1. Regional
Post-COVID-19 Online Payment Market, August 2021
Card Ownership in Select Countries, by Card Type, in % of Internet-Using and Banked Population, 2019 & 2020
Top Devices Used For The Purchase of Products/Services Online, in % of Internet-Using & Banked Adults, 2019 & 2020
Cash Usage Decrease, in % of Consumers, 2020
Top Payment Methods Used for In-Store Purchases, in % of Consumers, 2020
Top Payment Methods Used for E-Commerce Purchases Amid COVID-19, in % of Consumers, 2020
B2C E-Commerce Sales Year-on-Year Change, by 3 Forecasts Made in Nov 2019, May 2020 & Dec 2020, 2018 - 2022f
B2C E-Commerce Sales, in USD billion, 2019 - 2020e
Breakdown of Mercado Libre B2C E-Commerce Sales, by Select Countries, by Mobile & Non-Mobile, in % of Total B2C E-Commerce Sales, 2020e
3.2. Brazil
Number of WhatsApp Users, in millions, Y-o-Y Change, in %, 2019 - 2024f
Number of Real-Time Payment Transactions, in billions, 2020 & 2025f
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020
Breakdown of EBANX Online Merchants’ Payment Methods Offered, in % of Total Volume of Payments, Q1 2019 - Q4 2020
Top Payment Methods Used When Shopping Online via a Mobile, in % of Consumers, June 2021
Top Reasons Not to Use Mobile Payment App, in % of Consumers, June 2021
Share of Consumers Who Already Made a Purchase Online, in %, June 2021
Value of Overall Card Payments, in BRL trillion, 2019 & 2020
Value of Debit and Credit Card Payments, in BRL billion, 2019 & 2020
Value of Prepaid Card Payments, in BRL billion, 2019 & 2020
Value of Online Purchases Made by a Mobile Phone, in BRL billion, 2019 & 2020
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Brazilian IBA Adults, 2019 & 2020
Top Devices Used to Purchase a Product/Service Online, in % of Brazilian IBA Adults, 2019 & 2020
Share of Respondents Who Suffered and Did not Suffer from Financial Fraud, in %, 2019 & 2021
3.3. Mexico
Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020
Average Value of Credit and Debit Cards Transactions, in MXN, 2015 - 2020
Number of Real-Time Payment Transactions, in billions, 2020 & 2025f
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
Value of Debit Card E-Commerce Transactions, in MXN billion, Number of Debit Card E-Commerce Transactions, in millions, Q1 2020 & Q1 2021
Value of Credit Card E-Commerce Transactions, in MXN billion, Number of Credit Card E-Commerce Transactions, in millions, Q1 2020 & Q1 2021
Share of Purchases Made via Credit and Debit Cards, in % of Value and Volume of E-Commerce Purchases, Q1 2021
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Mexico IBA Adults, 2019 & 2020
Top Devices Used to Purchase a Product/Service Online, in % of Mexico IBA Adults, 2019 & 2020
3.4. rgentina
Breakdown of Top Payment Methods, in % Total Sales Made in a Year, 2019 & 2020
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Argentine IBA Adults, 2019 & 2020
Number of Real-Time Payment Transactions, in millions, 2020 & 2025f
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
Top Payment Methods Used in the Past Month, in % of Argentine IBA Adults, 2019 & 2020
3.5. Colombia
Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Colombian IBA Adults, 2019 & 2020
Top Payment Methods Used in the Past Month, in % of Colombian IBA Adults, 2019 & 2020
Number of Real-Time Payment Transactions, in millions, 2020 & 2025f
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
3.6. Chile
Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020
Top Payment Methods Used in the Past Month, in % of Chilean IBA Adults, 2019 & 2020
Top Devices Used to Purchase a Product/Service Online, in % of Chilean IBA Adults, 2019 & 2020
Number of Real-Time Payment Transactions, in millions, 2020 & 2025f
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
Online Payment Transactions, in % Year-on-Year Change, H1 2015 - H1 2020
3.7. Peru
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Peruvian IBA Adults, 2019 & 2020
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Peruvian IBA Adults, 2019 & 2020
Top Payment Methods Used in the Past Month, in % of Peruvian IBA Adults, 2019 & 2020
Breakdown of Payment Methods, in % of Volume, 2020 & 2025f
Number of Real-Time Payment Transactions, in millions, 2020 & 2025f
3.8. Dominican Republic
Card Ownership, by Debit, Credit and Prepaid Cards, in % of Dominican Republic IBA Adults, 2019 & 2020
Number of Mobile Payment Users, in millions, 2015 - 2020 & H1 2021
Value of Instant Payments, in USD billion, and Number, in millions, 2019 - 2020 & H1 2021
Domestic E-Commerce Transactions with Payment Cards, incl. Number, in thousands, and Value, in DOP million, by Card Type, 2019, 2020 & H1 2021
International E-Commerce Transactions with Payment Cards, incl. Number, in thousands, and Value, in DOP million, by Card Type, 2019, 2020 & H1 2021

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