‘Invisible’ payments are a key trend that we are witnessing in Brazil. What shifts in the ecommerce landscape are you seeing in the region? Since the start of COVID-19 there are 1 million new online shoppers in BrazilĬOVID-19 has accelerated many digital trends.
All of this makes our ecommerce market very local, demanding a deep understanding of the financial ecosystem and specific solutions tailored to Brazilian preferences. However, while the opportunities are vast, local taxation, regulation and higher fraud present challenges which may affect the process of starting and operating a business at a country level. To operate successfully in Brazil, you need to cater to these local preferences. In addition, 60% of ecommerce purchases are made by using at least two instalments and only 38% of adults hold a credit card. In recent years, we’ve witnessed an increase in popularity for local payment methods, these play an important role with a market share of 36%. Through their offering, these players aim to reach the unbanked, opening up access to global ecommerce and gradually creating a more inclusive financial system for various consumer groups.Īnother key characteristic of Brazilian ecommerce is local consumer behavior. The advent of challenger banks, including nubank, N26 and Banco Original has also boosted industry competition levels.
In fact, in 2019 alone, the fintech industry secured $2.5 billion in venture capital funding and there are now over 700 new fintechs, many stepping up to address the needs of the local, unbanked population. In order to address the market need for innovation and diversity Brazil has attracted significant fintech investment.
Competition among banks in Brazil was low until a few years ago, with a small number of institutions dominating the market. In terms of industry market players and their share, the local market has also diversified. This means there is still room for extended growth in ecommerce. Also, Brazil has a unique domestic ecommerce ecosystem, where half of the population is unbanked and, therefore, does not have access to basic banking services. Among the key market characteristics, Brazil’s internet penetration is still low at 61%, as compared to other countries, like the US for example (88%). In 2019, the country registered 12.5 billion EUR in total ecommerce sales, up 16% year-on-year and last year we saw higher growth (18%) as more consumers shifted to online shopping during the coronavirus pandemic. Can you explain what makes it different from other regions?īrazil is the largest ecommerce market in Latin America and the 13 th largest worldwide. The Brazilian ecommerce market has been showing promising growth in recent years. I’m currently the Managing Director for Worldline’s Latin America ecommerce arm, managing a part of the business that I believe has sustained growth potential. This gave me extensive insider knowledge of the specific trends transforming Latin America. These ranged from a card scheme Cartão Elo, to a local acquirer Cielo, and MoneyGuru, a fintech startup. Prior to Worldline, I held a range of product and leadership roles across various companies. We spoke with our Executive Managing Director Latin America, Daniel Passarelli, for his insight into the factors that will continue Brazil’s growth pattern.Ĭan you tell us about your background and role? In Brazil, ecommerce transactions surged in 2020 and while the pandemic accelerated this ongoing trend, underlying market developments and consumer behaviour support the country is primed for extended growth.
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