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eCommerce is set to increase 39 percent by 2022 in Brazil, reaching nearly R$150bnWorldpay report reveals mobile devices are revolutionizing online commerce
November 26, 2018
São Paulo, November 26, 2018 – The Brazilian eCommerce market is expected to maintain momentum over the next four years, to be worth R$146.91bn – (US$38.5bn) by 2022, according to new data from Worldpay Inc. (NYSE: WP; LSE: WPY).
In its 2018 Global Payments Report, which offers a snapshot of the current payment landscape across 36 countries globally, Worldpay found that the Latin America eCommerce market is experiencing strong growth, expected to reach over R$358.69bn (US$94bn) by 2022. Colombia is on track to increase at a rate of 23 percent CAGR, to reach R$32.43bn (US$8.5bn) by 2022. Argentina is expected to grow at a rate of 16 percent CAGR to reach R$73.26bn (US$19.2bn) in the next four years. Meanwhile in 2018, Brazil earned R$105.32bn (US$ 27.6bn) in eCommerce, and over the next four years the market is set to grow more than Colombia and Argentina combined, reaching R$ 146,91bn (US$38.5bn) by 2022 – an overall increase of 39 percent 1.
The rapid adoption of eWallets has been a major factor fueling global eCommerce growth. In Brazil, eWallets are growing at an annual rate of 27 percent, forecast to increase their market share by 9.5 percentage points between now and 2022. As shoppers increasingly crave the ease and simplicity of a one-touch checkout process, security is a major factor contributing to the rise of digital wallets. eWallets are considered safer because they store personal user data based on encryption protection, which appeals to consumers concerned with fraud and theft. Merchants are adopting secure payment options to enhance the mobile customer experience and deliver the seamless simplicity that eWallets can provide.
Worldpay’s report also examined the physical point-of-sale (POS) landscape, which found that eWallets are rapidly gaining popularity in-store. Forecast to grow by an average of 37 percent annually, eWallets are set to make up 9.7 percent of the Brazilian POS market by 2022 as consumers become increasingly comfortable with using their smartphones to tap-and-go. By comparison, cash is in steep decline; in four years, cash will account for just 28.7 percent of physical sales, compared to 52.1 percent in 2018, with the use of credit cards forecast to overtake cash in-store as early as next year.
According to Juan D'Antiochia, Worldpay's general manager for Latin America, Brazilian eCommerce is set for rapid growth over the next four years, offering a huge opportunity for merchants. "The advancement of eCommerce is a result of a mature and constantly changing market driven by technology, in particular, by mobile devices. Consumers see security, comfort and convenience when using their smartphones to make online purchases. Retailers need to keep an eye on this profile and optimize their mobile channels, otherwise they risk losing sales because they don't meet their customer's expectations," he said.
"It is important to emphasize that the eCommerce market is dynamic, creating possibilities for both the business world and future generation of jobs in the country. We have noted that the diversity in payment methods is a reality among many companies in this industry, but there is still room for improvement. Consumers are attentive to the retailers offering them more choice and are ready to establish lasting contacts," concluded D'Antiochia.
Worldpay has published guidance to help merchants capitalise on the global mCommerce opportunity:
- Consider developing a branded app. We know that 78 percent of Brazilian 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 is no one-size-fits-all in any region so you will need to understand the best options for your company.
To learn more about these key insights and trends in global payments, 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
1 Dollar quotation on Nov, 22 2018. Source: Central Bank