The holiday season is synonymous with a sustained rise in e-commerce purchases. In Latin America, this is mainly manifested in the retail sector, the most impacted, experiencing an increase of approximately 80% during the festive season, according to a study by SAP Commerce.
Regardless of the industry, each country in the region has its own trend when it comes to making purchases. For example, in Colombia the use of wallets has increased by 40% over the last year, Chile has a percentage of purchases with VISA that exceeds 50% of card purchases, and in Ecuador, Banco Pichincha has a reach of almost 99% in the country.
With the ever-evolving retail landscape, both businesses and users are experiencing a significant impact in terms of personalization, shopping experience, and diversity in payment options. In this context, PayRetailers emerges as a key ally, standing out thanks to its extensive range of both alternative and traditional payment methods. Comprehensively addressing the demands of emerging markets, the platform stands as an indispensable tool for facilitating seamless transactions.
We invite you to explore in detail the most effective and preferred methods by the Latin American audience. In addition, we offer you the opportunity to discover innovative strategies to face the holiday season with excellence, ensuring an outstanding shopping experience.
Top holiday season stats
· According to a study by Deloitte, 55% of Christmas expenses are associated with the purchase of gifts, where the most committed categories are digital goods and tangible goods.
· On average, each user buys at least 10 gifts.
· The top reasons for preferring online shopping are time savings (57%), 24/7 service (48%) and convenience (48%).
· 60% of shoppers start shopping in November, and a remarkable 89% of them use their mobile device to search for products.
With a marked inclination towards online transactions and payments, an effective strategy to successfully capture the diversity of buyers in the digital ecosystem lies in offering alternative payment methods. Latin American consumers demand a higher level of personalization and a more seamless shopping experience, which also includes ease in the payment processes.
The end of the year is a highly competitive season for businesses, and to stand out, companies must take care of the quality of these processes. In each country, the methods are diverse, and with the great digitalization, the lack of banking in these markets, and the willingness of users to use alternative methods, offering these is crucial. Flexibility and adaptability in transaction methods will not only make the shopping experience easier, but can also be a key differentiator in an increasingly competitive market during this season.
The end of the year represents a season of high competitiveness for all businesses. To stand out, companies must prioritize quality in their transaction processes. Payment methods vary from each country, and given the increasing digitalization and limited banking penetration in these markets, the inclusion of alternative payment methods becomes crucial.
Flexibility and adaptability in transaction methods will not only make the shopping experience easier, but can also be a key differentiator in an increasingly competitive market during this season.
Why offer APMs
According to a study by Statista, it is expected that by 2025, alternative methods such as digital wallets will account for 53% of all payments globally. However, what does this mean for businesses and consumers in LATAM?
In the midst of the extraordinary growth of the digital market in the region, each country has its own peculiarities. Mexico, for example, leads with an impressive 27% increase in online transactions in the last year, outpacing global growth of 16%, according to the Mexican Association of Online Sales (AMVO), highlighting instant methods such as SPEI. Colombia is not far behind, anticipating a 9% increase in e-commerce, with methods such as PSE, NEQUI, and cash through Efecty.
Chile stands out as the most digitalized country, with 90% access to digital accounts and its contactless payment technology accounting for 70%. Brazil, with its prominent market, diversifies its payment methods with highly effective and reliable options, such as bank transfers and payments via PIX.
These figures highlight the imperative need to adapt to various online payment options. A study by Oxford Economics notes that 56% of consumers would stop shopping from a website if their preferred payment methods were not offered, underscoring the need for businesses to adopt multiple and versatile payment options.
To overcome this challenge, many companies prefer to collaborate with specialized payment providers, despite the additional fees. The high costs and resources required to develop an in-house solution can be prohibitive and exhausting. However, this strategy carries the risk of compromising the quality of the company’s essential services if resources are diverted from its strategic core. In this sense, payment ecosystems and solutions such as the one offered by PayRetailers make it possible to consolidate payment operations, reducing costs and simplifying the management of multiple suppliers.
PayRetailers’ bet in LATAM
Merchants need to adjust to consumer demands, and companies operating in technology and payments need to offer the right tools to make this possible. PayRetailers, through its platform, is not only limited to being a payment processor; it stands as a true differentiator by deeply understanding the challenges and opportunities of payment ecosystems in LATAM.
Its localized checkout not only facilitates, but redefines payment experiences, allowing businesses to manage multiple methods with a single integration, an essential feature in a region where the diversity of payment options is immense. In addition, the platform provides analytical tools and advanced fraud management features, empowering merchants to process payments, understand and optimize their performance in an increasingly demanding market.
Coming soon: ICE London 2024
In its commitment to facilitate strategic discussions on optimal business approaches in emerging markets and improve sales throughout the year, PayRetailers is pleased to announce its participation in ExCel, London, February 6-8, 2024, at ICE London 2024. This event marks the beginning of the year as one of the most prominent in the gaming industry.
With the aim of establishing a solid presence in the Latin American market, the company will be presenting its extensive range of products and their latest developments. Secure a pre-meeting with the team and change the game for your business.
