Market roundup: How instant payments are booming digital commerce in Latin America

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How PIX-like systems drive double-digit digital commerce growth in Latin America

Latin America is seeing another lost decade in economic terms. Even so, some sectors continue to experience high, double-digit growth. That’s the case of digital commerce, which includes not only online retail but the purchase of travel services and digital goods (ride-hailing and delivery apps, streaming, gaming, and other types of digital services).

State of play. Digital commerce in Latin America is expected to end 2022 with a 37 percent increase in online sales to over USD 380 billion, and continue growing 25 percent per year through 2025, according to EBANX’s Beyond Borders study.

Payments revolution. A wider variety of digital payment options is behind this growth, especially when it comes to account-based transfers — solutions that use digital, fintech-offered accounts or traditional bank accounts.

Brazil’s PIX instant payment system is the most obvious success case, but there are others. Botón PSE (Colombia), Sinpe Móvil (Costa Rica), SPEI (Mexico), Pagos al Instante (Dominican Republic), and SafetyPay (a regional payment solution) have also gained ground.
Although not as popular as PIX, PSE became the most used payment method in Colombian e-commerce in 2021, used for nearly 35 percent of all online purchases in the country.
These systems are poised to make up 17 percent of all online purchases in...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.