E-wallets power Argentina’s eCommerce revolutionWorldpay finds that eCommerce in Argentina is predicted to grow to US$20bn by 2021
November 11, 2017
Tuesday 11th November 2017 – Buenos Aires – Argentina’s eCommerce market is expected to more than double over the next five years, making it one of the fastest-growing markets in the world, according new research from leading payments company Worldpay.
In its annual Global Payments Report, Worldpay found that eCommerce in Argentina is predicted to grow from US$8bn in 2016 to US$20bn by 2021, representing an average annual rise of 24 per cent. This makes Argentina the third-fastest growing region in the world, behind only Colombia and Nigeria.
The research has also found that Argentina is likely to enjoy an even more dramatic increase in mCommerce, which is set to grow by 34 per cent year-on-year to be worth US$6.5bn by 2021.
From Worldpay’s analysis, this eCommerce revolution is set to be powered by consumers’ embrace of alternative payment methods, with a particularly steep rise in the adoption of e-wallets. While credit cards are currently the most popular payment method in Argentina, e-wallets’ share of the market is set to rocket by 18 per cent to account for 43 per cent of the market by 2021.
While credit cards hold steady, other niche payments will see a significant decline, with bank transfers forecast to fall from 14 per cent to 10 per cent of the market and cash on delivery halving its share to under 4 per cent. Meanwhile charge and deferred payment cards are also set to lose market share, falling from 5 per cent to just over 2 per cent.
Worldpay examined 36 countries in four regions around the world, and found that Latin American eCommerce is predicted to grow by an annual average of 40 per cent over the next five years – the highest of any region. This spectacular growth highlights the previously-low rates of eCommerce adoption across the continent.
With its incredibly strong growth in both eCommerce and mCommerce, Argentina provides a fascinating case study that illustrates the rapidly rising Latin America market. Argentina benefits from a Internet penetration rate of almost 80 per cent, and the largest proportion of mobile Internet users in Latin America.
Strong connectivity is helping to power the Argentinian eCommerce revolution, as the country’s recovery has taken hold thanks to the greater integration with world markets.
According to the PEW Research Center, Argentina also benefits from a population with higher spending power and a larger middle class compared to its regional neighbours. These factors help to explain Argentina’s outstanding predicted growth in both eCommerce and mCommerce, and demonstrate the investment and growth opportunities for the world’s merchants.
Commenting on the research, Juan D’Antiochia, General Manager for Latin America at Worldpay said: “Latin America is the next frontier for eCommerce, providing a unique and highly-lucrative opportunity for retailers that can deliver great e- and mCommerce experiences for consumers.
“Argentina is a particularly attractive market, with growing smartphone ownership and expected regulatory changes that will open the market to foreign entrants. Retailers should, however, bear in mind Argentinian’s changing payment preferences and ensure that they provide the right mix of payment methods on mobile and online.
“While credit cards will remain an important part of the payments landscape, retailers should also consider factors such as the growth in e-wallets. Payments are a crucial part of the online retail experience, so if retailers can integrate the right mix of payments into intuitive, easy-to-use mobile and online checkouts they will be well-placed to seize the fantastic opportunities on offer.”
Worldpay has published a list of guidelines for merchants looking to capitalise on the global eCommerce and mCommerce opportunities in Latin America:
- 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 Mercado Pago, 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
Worldpay (UK) Limited (Company No. 07316500 / FCA No. 530923), Worldpay Limited (Company No. 03424752 / FCA No. 504504), Worldpay AP Limited (Company No. 5593466 / FCA No. 502597). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activities.