Latin America Online Payment Methods 2022

Latin America Online Payment Methods 2022
Digital payments are on the rise in Latin America, while cash declines post-pandemic, reveals a new report by yStats.com

Credit and debit cards at the top of B2C E-Commerce payments in Latin America

According to the latest data included in the yStats.com report, credit cards remain the leading payment method used by online shoppers across Latin America. Domestic and international credit cards together account for more than one-half of online retail payments in the region, driven by their high shares in three largest B2C E-Commerce markets – Brazil, Mexico and Argentina.

Alternative online payment methods are on the rise

In terms of the growth rate, however, alternative payment means such as digital wallets and bank transfers outpace cards across the region. Online payments by bank transfer, for example, more than doubled between 2020 and 2021. Other leading alternative payment means include digital wallets and cash-based payment services. Although the use of cash declined during the pandemic, cash payments such as Oxxo in Mexico and ServiPag in Chile maintain their position among the top payment methods used by online shoppers.

Mobile payments to see more growth post-pandemic

Latin American countries are yet to catch up with markets such as China and the U.S. in terms of in-store mobile payment usage. One in five smartphone users in Brazil made mobile payments at the point of sale in 2021, and even fewer in Mexico. Over the next few years, however, mobile payment usage in the region is projected to surge with hundreds of millions consumers adopting mobile wallets and bringing Latin America the third rank worldwide by number of mobile wallet users by 2025.