Online shopping surges in Latin America fueled by local payment options

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The diverse and evolving payment ecosystem in Latin America is a key consideration for businesses operating in the region, as adapting to this landscape emerges as a central strategy for FinTechs and merchants to tap into LATAM's eCommerce potential.

A recent study highlights the growing impact of young, digital-first consumers on the retail landscape in Latin America, but does not provide specific details about the methodology or the entities involved in the research.

Quality and affordability are the key purchase drivers for LATAM consumers, and the study emphasizes the importance of localizing offerings to meet these needs. Chinese eCommerce brands enjoy overwhelmingly positive perceptions in LATAM, indicating a potential market for international players.

The opportunity for international players in LATAM's eCommerce sector has never been greater, with the region projected to contribute 65% of global economic growth by 2035. Alternative payment methods (APMs) are expected to surpass card payments in major LATAM markets by 2026, accounting for more than $360 billion in value globally by 2029.

The study further strengthens the case for merchants to localize their offerings in Latin America, with nearly seven in ten consumers in LATAM being unlikely to complete transactions on websites that do not offer their preferred methods of payment. This preference for local payment options is evident, with 94% of online shoppers in LATAM considering local payment options like Pix, eWallets, and cash-to-digital solutions as important or extremely important for purchases.

Carlos Menendez, the Chief Operating Officer of dLocal, a company that simplifies complexity for global merchants by enabling seamless access to over 900 local payment methods across more than 50 markets, stated that success in LATAM eCommerce depends on meeting consumers where they are and offering the payment options they trust.

However, the study does not discuss the role of specific payment methods like Pix, eWallets, or cash-to-digital solutions in shaping the retail landscape, nor does it provide any new projections about the growth of APMs in LATAM or globally. Delivery speed is a top consideration for fewer than 6% of LATAM respondents, indicating that the focus on local payment methods may be more critical than fast delivery for eCommerce success in the region.

Brand loyalty is weaker in LATAM compared to shoppers in the United States, suggesting that offering a wide range of local payment methods could help merchants build trust and attract new customers. The study does not mention any new trends or insights beyond the impact of young, digital-first consumers and the importance of localization.

Despite the absence of specific details, the study underscores the importance of adapting to the diverse and evolving payment ecosystem in Latin America for businesses looking to tap into the region's significant eCommerce potential. As the region contributes more to global economic growth, the opportunity for international players in LATAM's eCommerce sector continues to grow.