brazil: the largest online ecommerce market in...
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In area and population, Brazil is the largest country in South and Latin America. When it comes to ecommerce, Brazil is also on top, accounting for more than 60 percent of ecommerce sales in the region. It represented USD$13 billion (BRL 31.1 billion) in ecommerce sales in 2013—an increase of 29 percent over 2012.1
Part of the four BRIC countries (Brazil, Russia, India, China), Brazil is one of the most promising countries for sustained economic growth over the next several years. Hosting the 2014 World Cup and the 2016 Olympics will add to an already active economy.
A young and active online marketplaceWith more than 200 million citizens and an average age of 30, Brazil represents a growing market for online shopping. Despite dramatic gaps between the richest and poorest households, the Brazilian middle class is driving the economic growth in all consumer markets—accounting for 59 percent of all B2C ecommerce sales in Latin America.
Highly connected and quick to adopt social mediaConsumers in Brazil spend more than 27 hours per month on their computers and spend more than one-third of that time on social media sites. After United States residents, Brazilians represent the largest national group of users for Facebook (65 million), Twitter (41 million), and YouTube. According to eMarketer, 79 percent of Brazilians with Internet access use social media.2
Mobile consumers and retailersAbout half of Internet users in Brazil use their mobile phones to go online3, while only 8 percent use tablets. According to a December 2013 report from Saatchi & Saatchi and Datafolha Instituto de Pesquisas, mobile Internet use in Brazil grew by more than 78 percent in the previous 20 months. Sharing through social media has driven much of that growth. As retailers and service providers continue to invest in ecommerce, mobile devices are likely to become the most popular means of going online.
BRAZIL: THE LARGEST ONLINE ECOMMERCE MARKET IN LATIN AMERICA
COUNTRY Full Name: Federative Republic of Brazil Capital: Brasilia Size Rank: 5th largest country in world
PEOPLE Population: 200,000,000+Average Age: 30
ECONOMY Official Language: Portuguese Currency: Brazilian Real (R$)GDP: $2.422 USD (2013 est.)GNI per capita: $10,720 USD
INTERNET USERSAge 18-24: 18 percent*Age 25-34: 30 percent*
*This online population represents more than 40 percent ofthe total in Latin America 4
COUNTRY SPOTLIGHT
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Key online payment methods
Brazil is the fourth largest payment card market in the world, with the highest card penetration of any country in Latin America: 2.1 cards per person. Because Brazilian ecommerce is both national and international, buyers and sellers regularly cross borders to do business. As a result, the most common payment methods are international and local credit cards such as Visa, MasterCard, American Express, Diners Club, and Hipercard. Cielo and Rede acquirers based in Brazil, also offer electronic payment products and services.5
Boleto Bancário, a local bank transfer scheme regulated by the Brazilian Federation of Banks, allows users to transfer money using the ATM, branch facility, or online presence of any bank. Some post offices and private companies can also process payments. Nearly one-quarter of Brazilian online shoppers use Boleto Bancário.
Consumer preferences drive payment methodsMerchants in Brazil have long offered installment credits for buyers to finance their purchases with partial payments made over time, a common practice across all industries. While installment credits have been adopted by some card issuers, in recent years pay-now cards have grown at 7 percent annually and pay-later cards have grown at more than twice that rate at 17 percent.6
How Digital River World Payments can helpDigital River World Payments has extensive experience doing business in Brazil since entering in 2007. By partnering with us, you’ll get a cost-effective and customized payment program for Brazil without the overhead costs and risks of setting up and maintaining your own local entity. In addition, we will consolidate and streamline all transactional data into one reporting structure for reconciliation.
Whether you have a Brazilian entity or not, we can provide a direct connection to our partner acquirers Cielo and Rede, along with regional cards such as Visa, Hipercard, ELO, Hiper, and alternative payments such as Boleto Bancário. Our business models can support your business growth today—and tomorrow.
PREFERRED PAYMENT METHODS
69%Boleto Bancario
24%Debit Online
4%
Source: Cross-Border Ecommerce Report, The Paypers, 2013
Other
3%
1 Brazilian Association of Electronic Commerce2 eMarketer report, Brazil Social Media: The Mobile Middle Class Goes Social.3 F/Nazca Saatchi & Saatchi & Datafolha Instituto de Pesquisas, F/Radar 13a edição, 20 December 20135 The Paypers, Cross Border E-Commerce Country Report—Brazil 20134 comScore Media Metrix6 Datamonitor, Payment Cards in Brazil, April 2012
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About Digital River World PaymentsDigital River World Payments helps online merchants accept payments worldwide, so that they can grow their businesses faster. With 200+ available payment methods in 170+ countries and multiple flexible service options, each merchant can implement a perfectly tailored payments strategy. Digital River World Payments covers everything from global card schemes to local payment networks and acquiring bank connections, offering consolidated reports and analytics, risk management solutions as well as complete back-office integration.