Latin American online shoppers reflect concern for online payment security
“Latin America Online Payment Methods: Full Year 2017,” a new publication includes a survey reflecting the concern for payment security in online purchase transactions of Latin American shoppers. The publication synthesizes information on online payment in four major markets of the region.
An indication of the concern for security in online payment throughout the Latin American region is the fact that well over half of online shoppers use authentication methods such as biometrics or SMS codes when paying for purchases online. A survey cited in the new report reveals that security issues outweigh the offered convenience of online payment. Fraud-wary consumers in Brazil use a local bank method Boleto Bancario and in Mexico, cash payment at OXXO convenience stores help avoid credit card use directly on E-Commerce sites.
In spite of these concerns, credit cards still are the leading payment method for online purchases in the Latin American region. Mexico provides an exception to the leadership of credit card, as PayPal is used more than plastic in that nation, according to research cited in the report. Mobile payment is also catching on in the region. In 2017, Latin America was second only to the Asia-Pacific region globally in the percentage of Internet-connected purchasers using mobile payments.
Questions Answered in this Report
- Which payment methods do consumers in Latin America’s top markets prefer when buying online?
- What is the attitude of online shoppers in Latin America towards payment security?
- How is the use of mobile payments developing in this region?
- What is the expected ROI for FinTech projects in Latin America compared to other regions?
- What are the key trends and developments in online and mobile payments worldwide?
1. Management Summary
2. Global Developments
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, Q1 2017
Card Spending, in USD trillion, and Breakdown by POS and E-Commerce, in %, 2015 & 2021f
Breakdown of E-Commerce Sales by Payment Methods, in %, 2021f
Top Two Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016 & 2017
Reasons For Not Shopping Online, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, Q1 2017
FinTech Adoption Rate, in % of Internet Users, by Selected Countries, 2017
Most Used FinTech Services According to Internet Users, in %, 2017
Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group, April 2017
Entities Expected to Be The Most Disruptive in FinTech in the Next Five Years According to Financial Services and FinTech Executives, in %, 2017
Top 10 VC-Backed FinTech Unicorns by Valuation, in USD billion, Q3 2017
Expected Annual ROI According to Financial Services and FinTech Executives, in %, 2017
Mobile Payment User Penetration, in % of Internet Users, by Regions, Q4 2015 & Q2 2017
Share of Internet Users Who Are Likely To Use Mobile Payment Next Year, in % of Internet Users, by Selected Countries, Q1 2017
Penetration of Bank Account Holders Willing to Share Personal Financial Data with Third-Party Providers to Use Their Services, in %, by Selected Countries, August 2017
Breakdown of the Number of Transactions/Purchases by Payment Methods, in %, as Perceived by Businesses and by Consumers, 2016
Factors Most Important to Consumers in Deciding to Use Mobile Payments, in %, 2016
Share of Internet Users Who Believe That Mobile Payment is Not Secure, in %, October 2016
Mobile Payment Security Features Demanded by Consumers and Implemented by Businesses, in %, 2016
Attitudes Towards Mobile Payment and Mobile Money, in % of Consumers, by Developed and Developing Markets, 2016
Contactless Payment Transaction Value, in USD billion, 2017e & 2019f
Number of Contactless Payment Users of Apple Pay, Samsung Pay and Android Pay, in millions, 2015 - 2017e
Apple Pay User Penetration Compared to Overall Mobile Payment User Penetration, in % of Internet Users, by Penetrated Markets, Q2 2017
3. Latin America
Breakdown of E-Commerce Sales by Payment Methods, in%, 2017e
Share of Mobile Shoppers Who Use Mobile Wallets to Pay for Products/Services Purchased via Mobile Device, in %, by Brazil, Chile, Colombia, Mexico and Peru, August 2016
Use of Second Factor Authentication Systems in E-Commerce, incl. Methods Used and Attitude, in % of Banked Online Shoppers, by Selected Countries, 2017
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of the Number of Payment Installments Used, in % of Online Shoppers, 2016 & 2017e
Share of Top 10 B2C E-Commerce Payment Methods of Orders Placed and Approved Orders, in %, and Approval Rate by Payment Method, in %, Q1 2017
Breakdown of Payment Methods Used in the Last Online Purchase from International Site, in % of Cross-Border Online Shoppers, 2013 - 2016
Reasons to Give Up an Online Purchase, in % of Online Shoppers, June 2017
Factors Important for the Decision to Purchase in E-Commerce, incl. Payment-Related, in % of Online Shoppers, April 2017
Reasons For Using Boleto Bancario, in % of Online Shoppers Who Use Boleto Bancario, July 2017
Breakdown of Online Shoppers Who Pay with Boleto Bancario by Gender and Age Group, in %, July 2017
Payment Methods Used in M-Commerce, in % of Mobile Shoppers, September 2017
Online Payment Methods Used in E-Commerce, by Device Used, in % of Online Shoppers, August 2017
Offline Payment Methods Used in E-Commerce, by Device Used, in % of Online Shoppers, August 2017
Payment Methods Used in E-Commerce, in % of Online Shoppers, December 2016
Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, December 2016
Share of E-Commerce of Total Payments with Credit and Debit Cards, in %, 2016
Breakdown of E-Commerce Card Payment Transactions by Credit Card and Debit Card, in %, 2016
Number of Authorized Payment Transactions on E-Commerce Websites, in millions, Value, in MXN billion, and Authorization Rate, in % of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2016 – Q3 2017
Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their Value, by Credit Cards and Debit Cards, Q1 2016 – Q3 2017
Share of Online Shoppers Who Stored Information With an Online Merchant and Type of Information Stored with an Online Merchant, in % of Online Shoppers, 2016 & 2017
Reasons for Not Storing Credit/Debit Card Information With Online Shops, in % of Online Shoppers, 2016 & 2017
Top 5 Most Important Aspects in E-Commerce Payments, in % of Online Shoppers, February 2017
Payment App and Wallet Penetration, in % of Banked Internet Users, July 2016
Breakdown of E-Commerce Sales by Payment Methods, in %, 2016
Breakdown of E-Commerce Sales Paid in Installments by Number of Installments, in %, 2016
Most Attractive Uses of Mobile Payment Services, in % of Smartphone Users, August 2016
Breakdown of Preferred Mobile Payment Providers, in % of Smartphone Users, August 2016
Payment Methods Used in E-Commerce, in % of Online Shoppers, August 2016
Top 5 Motivations for Online Shopping, in % of Online Shoppers, August 2016
More than three-quarters of online shoppers in Brazil and Chile, and above one-half in other major markets of Latin America prefer to use authentication measures like onetime SMS codes or biometrics when making payments online, valuing their security over convenience, according to a recent survey cited in the yStats.com report. In Brazil, a doubledigit share of shoppers chooses local banking method Boleto Bancario rather than payment card due to unwillingness to share their credit card information on the Internet.
Nevertheless, domestic credit cards remain the leading payment method by share of the region’s E-Commerce purchases, with digital buyers in Argentina and Brazil also likely to choose payments in credit card installments. In Mexico, however, PayPal ranks above debit and credit cards in terms of online shoppers’ usage, as the yStats.com’s report reveals. Moreover, local in-store payment method Oxxo is used by more than one-third of online shoppers in this country.
Mobile payment methods are also gaining acceptance in Latin America, with this region ranking behind Asia-Pacific only in mobile payment user penetration among connected consumers, according to a survey from 2017.