E-wallets popularity in Brazil is set to double in the next five yearsWorldpay predicts use of digital wallets will increase from 15 per cent to 31 per cent by 2021
November 09, 2017
São Paulo, November 9th 2017 – M-commerce is expected to become more popular in Brazil predominantly due of e-wallets, according to Worldpay’s 2017 Global Payments Report. The report data presents a forecast of the eCommerce industry in 36 countries around the world.
According to Worldpay’s findings, the popularity of e-wallets is expected to double over the next five years, increasing from 15 per cent to 31 per cent by 2021. However, the popularity of credit cards will not diminish, with this payment method set to remain the most popular way to pay in Brazil (41 per cent) until 2021.
E-wallets are one the most relevant means of payment contributing towards the growth of eCommerce in Brazil, which is set to be worth US$ 23.7bn by 2021. Additionally, eCommerce is a phenomenon occurring not just in Brazil but right across Latin America. Whilst eCommerce in Brazil is gradually becoming more established, nations such as Mexico and Argentina also have a huge opportunity to grow rapidly in this sector – with eCommerce forecast to increase by 17 per cent and 24 per cent in the next five years respectively.
The eCommerce boost in Latin America is due in part to the size of the relatively well-banked population, with nearly one bank account per consumer.1 In addition, consumers are already comfortable with the concept of shopping online, and many have been waiting for more access and options. In fact, according to a survey conducted by SPC (Credit Protection Service) and CNDL (National Confederation of Merchant Leaders), 89 per cent of connected consumers have already bought something online at least once in the period June/16 – June/17. M-commerce in Brazil is set to be worth US$10.1bn in 2021 due to high penetration in mobile use – with 1.3 mobile subscriptions per capita, Worldpay expects the number of connected adults to grow rapidly as well.
“This change of habits is a result of both consumer desire for easier and faster means of payment while shopping, and Brazil’s business entrepreneurs who are investing more in electronic commerce to increase their sales opportunities. At the same time, all this is being leveraged by a largely connected Brazilian population – 290.5m consumers in Brazil, (approximately 65 per cent of the population) currently have internet access”, said Juan D’Antiochia, General Manager for Latin America at Worldpay.
Currently, credit cards remain the most popular payment method in the market in 2017 with a huge margin of 61 per cent. The second most popular method is PostPay (15 per cent) such as boleto bancário, followed by e-wallets with 12 per cent of the market. Meanwhile, Worldpay’s data also reveals a projected 16.7 percentage point decline in credit card use by 2021 (41 per cent). Bank transfers are also set to increase by 6.9 percentage points (from 6 per cent to 13 per cent) in the same timeframe – likely due to the rise in use of banking apps, which is making it easier for consumers to transfer payments between different accounts.
D’Antiochia added: “From the 2017 report findings, merchants are in a strong position to empower local consumers. If they want to succeed in Brazil, it is important to offer customers their preferred payment method and stay up to date on the latest trends in mCommerce. Additionally, given mCommerce is set to grow at an average of 18% per year for the next five years, merchants should decide how to optimise their website to deliver a compelling shopping experience for those shopping on a mobile device. Following these steps is fundamental to creating a successful online business.”
Worldpay has published a list of guidelines for merchants looking to capitalise on the global eCommerce and mCommerce opportunity:>
- Consider processing credit and debit cards locally rather than on a cross-border basis, as it could boost your payment success rate.
- Offer your customers their preferred payment method, such as Boletos, and consider localising your online checkout for each market to include local currency pricing.
- Omni-channel payments are important for capturing new audience share, especially with those who are new to e- and mCommerce. Try to offer a consistently positive customer experience, regardless of how they choose to shop with you.
About the Global Payments Report
This report has been compiled using a mixture of primary and secondary data sources. Primary refers to our own surveys and commissioned research; whereas secondary refers to authoritative third-party vendor data, and other publicly available data. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions. The eCommerce projected growth figures contained in this report were sourced from GlobalData’s E-Commerce Analytics database and relate to the eCommerce industry as a whole, not Worldpay’s business. GlobalData collected this data using consumer surveys, B2B surveys and desk research. Any indicative predictions based on the data we have used should be treated as such.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to around 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types. For more information, visit http://www.worldpay.com/global
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1Worldpay Global Payments Report