Increased mobile devices drive the market among the fastest growing countries in mobile commerce over the next four years
Argentina's e-commerce market will grow by 83% between 2018 and 2022 to reach $ 19.2 billion, according to new data provided by Worldpay Inc., a global payment technology company.
In addition, the country is among the markets that will experience the fastest growth in mobile commerce, rising at an annual rate of 26%. The local market is made up of 44.7 million consumers, of which 81% now have Internet access.
In its International Payments Report of 2018, Worldpay points out that credit cards are the most widely used online method in 2018, accounting for 26.7% of market transactions. These are followed by electronic wallets (22%), bank transfers (14%), debit cards (10%) and cash on delivery (8%).
However, the difference between credit cards and electronic wallets is closing in relation to the online payment behavior of Argentine consumers. Credit cards are preferred by consumers who want to pay in installments and wallets offer comfort.
It is expected that electronic wallets will become the most popular online payment next year, anticipating that they represent 22% of the market in 2019, rising to the same rate. In this scenario, bank transfers, MercadoPago and Rapipago, are presented as the main alternative payment methods.
The Worldpay report also analyzed the physical point of view and found that the most popular method of payment was cash (43.9%), followed by credit (33%). Credit cards are expected to exceed cash performance as the most popular sale method since 2019, which will account for 37.7% of the sales point market (compared with 36.6% in cash).
In the meantime, Electronic wallets are also growing in popularity at outlets. Currently, the use of electronic wallets represents 3.9% of sales in stores and is expected to increase by 51% CAGR, representing 11.1% of purchases at sales points for 2022.
"Latin America as a whole is a dynamic market that offers a change scenario and opportunities for payments. Retail sales in general and, in particular, growth in e-commerce will far exceed the 2% growth expected for the region's economy. strong e-commerce in Latin America, with a transaction value projection of over $ 61 billion in 2018, which will grow to over $ 94 billion in 2022, "said Juan D'Antiochia, General Manager for Latin America in Worldpay.
"Argentina is a pioneer in e-commerce in Latin America and continues to offer the most attractive opportunities in the segment. It has a growing base of young and educated consumers on the Internet and the majority of mobile phone users in the region explaining rate annual growth of 16% of local e-commerce, "he concluded.
The Worldpay report, which collects information about the payment method industry in 36 countries, reveals a complex and diverse picture globally. Alternative payment methods are increasing to meet the needs of digital consumers, driven by electronic wallets and bank transfers. Although its long reign is nearing its end, cash is still the main method of payment at the point of sale. This scenario opens the doors of companies to satisfy the consumer by offering the right mix of payment options.
The increase in e-commerce is expected to exceed $ 4.6 trillion worldwide by 2022. The way people trade is changing: credit card and debit card alternatives now account for more than half of the volume of e-commerce sales, and the mobile phone is about to surpass desktop sales in 2023. The study found at least 140 methods online payment in use today.
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