Latin America Online Payment Methods: Second Half 2014
Online Payments Develop in Latin America
In Latin America, credit card and alternative payment methods compete hand to hand for the share of the fast growing B2C E-Commerce market. Region wide, payment through online payment platforms was only slightly ahead of credit card by penetration on online shoppers in 2014, while in some countries also cash on delivery plays an important role. Furthermore, a common trend in the region is increased use of mobile devices for payment in online shopping, with close to a quarter of online payment users already having paid with smartphone at least once.
In the region's largest market, Brazil, new regulations were adopted in 2013 and 2014, boosting the growth of online and mobile payments. Credit cards were used most in online purchases in Brazil, followed by local banking payment method Boleto Bancario. In Mexico, which ranks next to Brazil by B2C E-Commerce sales, both cash and credit cards were frequently used by online shoppers. Credit and debit cards were in the lead in online retail in Argentina, while close to half of Internet users did not shop online due to fears for safety of their credit card data. Also Colombia and Chile show growth in online and mobile payments: in Colombia payment transactions via mobile phone more than doubled last year, while in Chile one in every six Internet users carried out banking transactions online.