LatAm leads e-commerce growth, says Global Payments Report
The global e-commerce market will grow at an average of 11 per cent over the next five years, buttressed by the spread of digitalisation, mobile usage and of instant payment networks.
Latin America (LatAm) will lead the way, according to new data from Worldpay, which in its annual Global Payments Report found that the e-commerce market there is set to grow by 19 per cent over the next five years, rising from US$59bn today to $118bn in 2021 – the biggest rise of any region.
The research also found that the three fastest-growing countries for e-commerce are Colombia, Nigeria, and Argentina. These “CAN countries” are forecast to lead the world with annual rises in e-commerce of 31, 30 and 24 per cent respectively.
Worldpay’s research also examined the growth in mobile commerce, and found that total m-commerce penetration is set to rise from 38 per cent in 2017 to 47 per cent in 2021, driven by increased smartphone ownership and faster mobile networks. Latin America is set to be in the vanguard of m-commerce growth, with Colombia seeing a 64 per cent rise, and 45 per cent in Argentina – putting them in first and fifth position globally.
Shane Happach, Chief Executive Officer – Global eCom at Worldpay explained: “No-one can predict the global economic climate over the next five years, but we can be sure that consumer appetite for online and mobile shopping will continue to see extremely strong growth. The rise in smartphone adoption and the continued improvement in mobile networks have important implications for merchants looking to take advantage of an increasingly well-connected middle class with greater disposable income.
“However, it’s important for retailers to understand the idiosyncrasies of each territory. No two markets are the same in terms of the population’s preferred payments methods, and each has different regulatory requirements, mobile penetration and banking practices. That is why it’s so important that merchants do their homework before they invest in new countries to ensure that they make the right strategic decisions.
“With the right support, however, retailers can seize a unique opportunity to take a lead in these emerging e-commerce markets,” Happach concluded.
Worldpay’s Global Payment Report 2017 report also highlighted how the payments landscape is continuing to fragment, with options such as bank transfers, cash on delivery and pre-paid cards stealing market share from more traditional methods like credit and debit cards. The research found that bank transfers are set to overtake both credit and debit cards as the second most popular global payment method behind e-wallets, adding an additional factor for retailers to consider when planning their e-commerce strategies.