eCommerce in Argentina is set to grow by 83 percent by 2022Increased use of mobile devices places the Argentine market among the countries with the highest global mCommerce growth over the next four years
November 22, 2018
Buenos Aires, November 22, 2018. The eCommerce market in Argentina is set to increase by 83 percent between 2018 and 2022, to be worth US$19.2bn, according to new data from Worldpay Inc. (NYSE: WP; LSE: WPY), a global leader in the payments technology industry. In addition, the country is among the markets that will show the fastest growth in mCommerce, increasing at an annual rate of 26 percent. The local market is made up of 44.7 million consumers, of whom 81 percent currently has access to the Internet.
In its 2018 Global Payments Report, Worldpay found that credit cards are the most widely used online, accounting for 26.7 percent of the market. These are followed by eWallets (22 percent), bank transfers (14 percent), debit cards (10 percent) and cash on delivery (8 percent). However the gap between credit cards and eWallets is closing when it comes to how Argentine consumers pay online – whilst credit cards meet consumers’ preference to pay by installment, eWallets are providing greater convenience. eWallets are expected to become the most popular online payment as early as next year, forecasted to make up 22 percent of the market, growing at the same rate.
In this scenario, the top alternative payment methods are bank transfers, MercadoPago and Rapipago.
Worldpay’s report also examined the physical point of sale (POS) landscape, which found that most popular in-store payment method is cash at 43.9 percent, followed by credit (33 percent). Credit cards are set to overtake cash as the most popular in-store method as early as 2019, set to make up 37.7 percent of the POS market (vs. 36.6 percent cash). Meanwhile eWallets are also growing in popularity in-store. Currently 3.9 percent of in-store sales, eWallets are growing at a rate of 51 percent CAGR, and are set to make up 11.1 percent of all in-store purchases by 2022.
“Latin America as a whole represents a dynamic market that offers a scenario of change and opportunity in payments. Retail sales in general and the growth of eCommerce in particular, will far exceed the two percent estimated growth for the economy of the region as a whole. The research points to strong eCommerce growth in Latin America—with a projection over $61bn in transactional value in 2018 rising to over $94bn in 2022”, stated Juan D’Antiochia, General Manager for Latin America at Worldpay.
"Argentina is a pioneer in eCommerce in Latin America and continues to offer the most attractive opportunities in the segment. With the biggest number of young and educated users on the Internet and the highest proportion of mobile users in the region, this explains the annual growth rate of 16 percent in local eCommerce,” he concluded.
Worldpay’s annual report, which gathers information on the payment methods industry in 36 countries, reveals a complex landscape brimming with diversity. Alternative payment methods are rising to meet the needs of consumers online, led by eWallets and bank transfers. Though its long reign of supremacy is nearing its end, cash remains the leading payment method at the POS. This complex landscape opens doors to increase consumer satisfaction by offering the right mix of payment options.
The rise of eCommerce is expected to reach $4.7tn globally by 2022. The way people shop online is changing too: alternatives to credit and debit cards now account for more than half of eCommerce sales volume and mobile is set to surpass desktop sales by 2023. The report found at least 140 online payment methods in use today.
Worldpay has published guidelines to help merchants capitalise on the global mCommerce opportunity:
- Consider developing a branded app. We know that 71 percent of shoppers prefer apps over mobile browsers when shopping on their smartphone, and many say they won’t buy from a business that doesn’t have an app. It’s no longer enough to just have a mobile-optimized website – if you’re not prioritizing a transactional app for your brand, you’re not putting your best foot forward.
- Make it easy and use biometrics to speed up the journey. Shoppers are becoming increasingly familiar with the concept of fingerprint scanning and facial recognition, so do not shy away from using these methods as a form of authentication. Biometrics place payments at the back of the user’s mind, giving them a faster and friction-free experience, making the payment seem ‘invisible’.
- Identify the most popular payment methods in each territory in which you operate. There are huge differences in payment preferences across the world, and alternative payment methods are gaining share over traditional credit and debit cards. There’s no one-size-fits-all in any region so you’ll need to understand the best options for your company.
To learn more about these key insights and trends in global payments, please visit https://worldpay.globalpaymentsreport.com/
About the 2018 Global Payments Report
The 2018 Global Payments Report offers a snapshot of the current payment landscape across 36 countries globally. Worldpay’s Market Intelligence team compiles the Global Payment Report using a combination of authoritative third-party vendors and other publicly available data. This compiled data was analyzed using Worldpay’s proprietary data model and categorization scheme, with support from McKinsey. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions, informed by our processing of more than 40 billion transactions annually via more than 300 payment types, across 146 countries and 126 currencies.
The projected growth figures contained in this report were sourced from GlobalData and McKinsey and relate to the industry as a whole, not Worldpay’s business. The data has been collected using consumer surveys, B2B surveys and input from local research teams. 45,000 consumers were surveyed globally.
Any indicative predictions based on the data we have used should be treated as such. No representation or warranty, expressed or implied, is made by Worldpay, Inc. and/or any of its affiliates, directors, officers, employees, agents or advisers as to the reliability, accuracy, timeliness or completeness of any information, opinions or analysis contained in this document, which is not intended to be relied upon by you or any person for any purpose whatsoever.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global Omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B. Visit us at www.worldpay.com