PagSeguro survey also revealed that the country should generate US$870 in 2026
A study by PagSeguro, the E-commerce and Payment Landscape in Latin America showed that e-commerce turnover in Latin America reached US$479 billion in 2023, and is expected to reach US$870 billion in 2026.
Brazil leads the ranking with a turnover of US$275 billion, expected to reach US$435 billion in 2026.
Currently, 73% of online purchases in these countries are made using mobile devices, compared to 55% in 2020. Mexico leads with the largest share of mobile transactions in total e-commerce volume, followed by Colombia, while Chile has the lowest rate. In Peru, Colombia, Chile and Mexico, less than 40% of the population has access to a computer. In Argentina, the rate is 63%, and in Brazil, 58%.
Among payment methods, the report points to a growth trend for Pix from 17% to 19% between 2023 and 2026 and for bank transfers (which include instant payments from other countries Latam) going from 5% to 7% between 2023 and 2026.
Since 2018, the share of e-commerce payments made via credit cards in the region has decreased from 55% to 47%, projected to fall to 43% by 2026, but maintaining leadership among the most used methods for online payments, due to the possibility of installments.
Latin America at the top
The report indicates that Latin America has stood out on the global stage as the region where online retail sales have grown the most. Its retail e-commerce transactions increased 30% annually in 2023, compared to 14% in the United States and 12% in Europe.
Additionally, online retail sales are expected to continue expanding at a faster rate in Latin America, with a compound annual growth rate (CAGR) of 21%, compared to 15% in Africa and 11% in the United States. .
The largest vertical in e-commerce, retail, is currently a $258 billion market across the top six markets and is expected to reach $454 billion by 2026.
Brazil and Mexico lead the e-commerce sector regionally, accounting for 70% of all transactions in the countries surveyed. Additionally, Mexico stands out as the fastest growing online retail sector in the region, with sales growth for this sector expected at a CAGR of 33% in the country by 2026.
(Credit: Freepik)