Brazil is the largest online market in Latin America, representing over 40% of the region’s ecommerce sales. In 2015 online retail sales reached $19 billion and Bain and Company expects the Brazilian ecommerce market to maintain a healthy annual growth of 11% right up until 2019.
Internet penetration has been growing steadily in recent years. 66% of the population is now online, up 5% from 2015. Brazil is also catching up in terms of smartphone adoption and now has an average of almost two devices per person.
There are more than 200 million active cards issued in Brazil, with Credit Cards representing around 45% of the total. It is important to mention that Debit cards have a quite low penetration in the Brazilian online sales as 3DS is mandated for this type of transactions. Adyen is pioneering in the market by processing Debit without 3DS for selected merchants previously approved by the Schemes and the Issuers. Besides that it is important to note that many of these cards are not enabled for cross-border payments (even though they are Visa or Mastercard branded). Boleto Bancário, a cash- based payment method, is also popular, especially with customers who do not have a bank account.
Finally, another key fact of the Brazilian payment landscape is that up to 80% of all ecommerce payments are made in installments.
To offer payments in installments, you must be connected to local Brazilian acquirers. Many Brazilian cards are also limited to domestic transactions only, which also require a connection to a local acquirer. Adyen has been acting as an acquirer in Brazil for Visa and Mastercard since 2016, and delivers a solution with the same service levels and functionalities made available in other markets. In addition to that Adyen is connected to all major Brazilian acquirers to process minor schemes (Cielo, Rede and Santander/GetNet).
Over the recent years, Mexico has attracted increased interest from global brands looking to expand in a country where online shopping is growing at an exponential rate. The country’s online retail revenues are forecasted to grow to $6.7 billion in 2019, with online buyers increasing from 10.1 million to 21.1 million.
In terms of mobile, a recent study shows that Mexico is one of 22 countries leading the trend toward mobile commerce. And young adults made 88% of smartphone purchases. The country has one of the largest mobile markets in Latin America, with one-third of all residents using smartphones.
Installments (for cards) are also popular, and a domestic entity is required to support this type of payment.
In Mexico, many domestic cards are not enabled for cross-border purchases and use of a local acquirer is recommended to increase authorization rates. Adyen has local acquiring capabilities in Mexico, so you can process transactions with credit and debit cards issued by any bank.