Your guide to local payment methods in Brazil
Payment Market Overview
With the largest ecommerce market in Latin America , Brazil is a key region for merchants considering geographic expansion. Representing 31% of all digital sales for LATAM, Brazil's online shopping revenue is expected to increase by 18% in 2021, surpassing 149 billion reals (approx. 29.5 billion USD).
If the size of the opportunity alone wasn't enough to make this an attractive market, the rate at which Brazilian consumers are going digital is also unlocking huge potential. With a population of 212 million, Brazil is the fifth largest country in the world - and 80% of them are already online. And with smartphone penetration in Brazil expected to increase to 75% by 2025, the opportunity for growth is only increasing.
The Local Payment Culture
To take advantage of the lucrative opportunities the market presents, it is crucial to understand how Brazilian consumers prefer to pay. Local payment methods represent over 95% of the market, but due to restrictions on banks and currency controls, entry into Brazil can be complex. So, understanding local payment methods and legislation is vital.
As of January 2020, most online purchases in Brazil were paid for by card. but with approximately 48 million unbanked Brazilians representing almost 204 billion USD of the country's economy per year, cash-based methods such as Boleto Bancário are also extremely popular.
The Ecommerce Market
It is anticipated that in 2021, 97% of total ecommerce purchases in the country will be domestic, with 62% of total ecommerce purchases being paid by cards. Never before have local payment methods and expertise been so closely aligned with potential merchant success.
Moreover, Brazil is fast becoming a mobile-first nation. 63% of the population have an internet-enabled smartphone. And with 34% of online purchases being made using a mobile device, it is important for merchants to keep mobile commerce front of mind - or risk missing out on a large share of the market.
Ultimately, the ecommerce market in Brazil is evolving. Yapstone is equipped to help you navigate this market. From out team of experts, to our on the ground support - Yapstone can help you scale your business. Find out more by downloading our Brazil Country Guide or get in touch today by contacting firstname.lastname@example.org.
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