November 14, 2017
Tuesday 14th November 2017 – Mexico City – Mexico is set to experience an eCommerce revolution over the next five years with its online retail set to nearly double in value, while mCommerce is set to quadruple in the same period.
The figures come from new data from leading payment company Worldpay. In its annual Global Payments Report, the company found that eCommerce in Mexico is predicted to rise by an annual average of 17 per cent, growing from US$21bn to US$39.4bn by 2021.
Mexico is expected to enjoy an even bigger rise in mCommerce in the next five years, growing by an average of 27 per cent each year to be worth US$21.2bn. As a result, Mexico’s eCommerce and mCommerce boom could make the country one of the largest eCommerce markets in Latin America.
Mexico’s eCommerce revolution is likely to be accompanied by a significant shift in preferred payment methods, with credit cards ceding ground to online bank transfers. Credit cards are currently the most popular payment method in Mexico, with 29 per cent of the eCommerce market in 2016. This is set to fall to under 23 per cent over the next five years as bank transfers grow from 16 per cent to over 24 per cent of the market.
Other payment methods will likely see small increases, with debit cards rising slightly from 23.8 per cent to 24.7 per cent of the market, cash on delivery growing from 8.5 per cent to 10.1 per cent and e-wallets also set to rise from 8.3% to 10.3%.
Worldpay examined 36 countries in four regions around the world, and found that Latin American eCommerce is expected to grow by an average of 40 per cent a year by 2021 – the highest of any region. This spectacular growth highlights the previously-low rates of adoption across the continent. Mexico is Latin America’s second biggest economy; the country has 129m consumers, of whom over half (68 per cent) have access to the Internet.
Commenting on the research, Juan D’Antiochia, General Manager for Latin America at Worldpay said: “With online representing well under 10 per cent of all retail sales, Mexico’s eCommerce has significant scope for growth, and this presents enticing opportunities for retailers and other merchants – especially for mCommerce. In 2015, the number of online shoppers more than doubled, showing that consumers have an increasing appetite for eCommerce.
“However, retailers should be aware that security remains a major concern for Mexican consumers, who are hesitant to store payment card details with online merchants – although PayPal, credit and debit cards remain the most popular forms of online payments. Merchants should concentrate on providing industry-leading data security measures, while keeping their websites simple and easy to use to ensure that they appeal to new online and mobile shoppers.”
Worldpay has published a list of guidelines for merchants looking to capitalise on the global eCommerce and mCommerce opportunities in Latin America:
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