E-commerce in Latin America shows hypergrowth
Interest in digital services such as video streaming is on the rise among Latin American consumers as online shopping is rapidly gaining popularity in the region.
A recent study from the global payment solutions provider EBANX predicts that e-commerce sales in Latin America would not only grow 37% year-over-year from 2020 to 2021, but also maintain a 30% annual growth rate through 2025, making the commerce sector electronics in the region a market in hypergrowth.
Juliana Etcheverrywho leads Latin American expansion and strategic alliances for EBANX, recently said that these developments have caused international companies in already saturated e-commerce markets, such as China and the United States, to look to Latin America with increased interest.
The regional growth of e-commerce puts these international players on a par with local brands, she added, meaning finding ways to stand out from the digital crowd is essential for local and international businesses. .
Meanwhile, telecommunications, mobile and other services are competing for customers as digital streaming becomes more popular in Latin America, said Navdeep Sainico-founder and CEO of video-as-a-service provider Distribution scaleparent company of DistroTV.
Available in 60 countries, DistroTV recently launched its free streaming service – available on smart TVs and supported by ads – in six Latin American countries.
“What’s happened in Latin America is that…a lot of mobile or telecommunications companies have bought broadband,” Saini told PYMNTS. “So…to compete with cable, they started delivering [these] value added services [or] access to certain streaming services.
Providing a seamless onboarding experience is an essential first step in attracting consumer attention and loyalty as the digital subscription market grows in Latin America. This includes providing simple and convenient payment experiences, as friction in payment could lead consumers to abandon their services for other alternatives.
To learn more about the state of e-commerce, streaming, and other trends in Latin America, download your copy of Global Merchants Guide for Latin America, a collaboration between PYMNTS and EBANX.