Mobile growth is driving the market in the fastest growing countries in mobile commerce over the next four years
Argentina's e-commerce market will grow by 83% between 2018 and 2022 to reach $ 19.2 billion, according to new data from Worldpay Inc., a global payment technology company.
In addition, the country is among the most rapidly developing mobile commerce markets, growing at an annual rate of 26%. The local market consists of 44.7 million users, of which 81% currently have Internet access.
In its International Payments Report 2018, Worldpay points out that credit cards are the most widely used online method in 2018, accounting for 26.7% of market transactions. The following are electronic portfolios (22%), bank transfers (14%), debit cards (10%) and cash amounts (8%).
However, the gap between credit cards and e-portfolios is closing down compared to users' online Argentine online payment behavior. Credit cards are preferred by users who want to pay in installments and e-wallets offer convenience.
It is expected that electronic portfolios will become the most popular online payment next year, that they account for 22% of the market in 2019., rising at the same rate. In this scenario, bank transfers, MercadoPago and Rapipago, are presented as major alternative forms of payment.
The Worldpay report also analyzed the prospect of the physical point of sale and found that the most popular way of payment was in cash (43.9%), followed by credit (33%). Credit cards are expected to outperform cash as the most popular sale method since 2019, which will account for 37.7% of the retail sales market (against 36.6% in cash).
While, Electronic portfolios are also growing in popularity in storesCurrently, the use of electronic portfolios accounts for 3.9% of sales in stores and is expected to grow by 51% CAGR, representing 11.1% of purchases at points of sale for 2022.
"Latin America as a whole is a dynamic market that offers a change scenario and a possibility for payments." Retail sales as a whole, and in particular growth in e-commerce, will well exceed the expected 2% growth in the region's economy. trading in Latin America with a forecast of a transit value of more than $ 61 billion in 2018, which will grow to more than $ 94 billion in 2022, "said Juan Antonio Antioch, General Manager for Latin America in Worldpay.
"Argentina is a pioneer in e-commerce in Latin America and continues to offer the most attractive features in the segment with a growing base of young and educated Internet users and the largest share of mobile users in the region, which explains the annual growth of 16% local e-commerce, "he concluded.
The Worldpay report, which gathers information on the payment methods industry in 36 countries, reveals a complex and diverse picture worldwide. Alternative payment methods are expanding to meet the needs of digital users led by electronic portfolios and bank transfers. Although his long reign is over, cash is still the primary form of payment at the point of sale. This scenario opens the doors of the business to satisfy the user by offering the right combination of payment options.
The increase in e-commerce is expected to exceed 4.6 trillion. Worldwide Dollar Until 2022 The way people make deals also changes: credit card and debit card alternatives already account for more than half of the volume of e-commerce sales, and the mobile phone will soon surpass PC sales in 2023. The survey found at least 140 online payment method used today.
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