2023 PCMI Blueprint Standard August-2023

The 2023 Latin America
E-commerce Blueprint
Standard version
2023
A subsidiary of
2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com

Legal Notice
Wherever possible, PCMI has verified the accuracy of information provided by third parties but does
not under any circumstances accept responsibility for such inaccuracies should they remain unverified.
It is expected that the Client will use the information provided in this report in conjunction with other
information and with sound management practices. PCMI therefore will not assume responsibility for
commercial loss due to business decisions made based on the use or non-use of the information
provided.

2
30
Global payments years experience
PCMI was born in 2022 out of AMI, the leading industry advisory group
in the industry
market intelligence firm for Latin America, with
over 30 years’ experience providing market
intelligence to leading corporations in the region.
With payments and commerce transcending

borders, AMI evolved into PCMI, to support our
clients across the globe.
Executed
In Latin America and beyond, our mission remains:
Coverage of 50+ 400+ projects
to be more committed to our clients’ global markets, in the payments
success than any consultancy on earth industry since 2003
through expert network
of over 100 consultants

Our
GLOBAL
COVERAGE
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Our global coverage
2022 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com 4

Table of
Contents
Report methodology 6
State of digitization and e-commerce in Latin America 11
Multi-rail convenience 20
Marketplaces and platforms 27
Cross-border opportunity 32
Finale takeaways 39
Definitions 40
Do you want to go deeper? 43

5
Report methodology

6
Why this report?
Amid explosive e-commerce growth in Latin America and the Caribbean, accurate intelligence is key to unlocking the region’s opportunities
Public data on Latin American e-commerce is often unreliable, creating more questions than answers
Why?
Inconsistent methodologies Incomplete coverage of Failure to verify with local

within and between markets e-commerce segments experts
PCMI’s Latin America e-commerce data is different
1. Applies the same methodology across 15 LAC markets

2. Covers the entire universe of online transactions, including all verticals, payment methods, and domestic and cross-border transactions
3. Applies industry, macroeconomic and cultural expertise to uncover the narrative behind the numbers and draw business implications
from the data
Report methodology
50+ interviews with industry players across 15 markets in Latin America
To develop the data on each market, PCMI first compiles all relevant data from publicly available
sources including local chambers of commerce, e-commerce associations, local press, market
reports and regulator and government statistics, as well as data from the World Bank and affiliated
international organizations.
The PCMI team analyzes the data with a critical approach, identifying the holes, errors, and
inconsistencies in this data to prepare it for primary research. Then, PCMI conducts interviews with
local e-commerce industry stakeholders to clarify, deepen, and streamline data collected via
secondary research. In the creation of this dataset, we interviewed over 50 e-commerce executives
across the 15 markets covered in the 2023 update of the data, including banks, acquirers, payment
gateways, payment service providers, merchants, and consultants.
Finally, PCMI conducts a rigorous triangulation of the primary and secondary results, leveraging the
perspective of our historical data collected since we first began building this dataset in 2015, to
arrive at the final results.
How do we define e-commerce?
In this data set, “e-commerce” refers to all online purchases of goods and services, including all
locally-issued payment methods, mobile and PC purchases, domestic and cross-border purchases
and all products spanning retail, travel, digital goods and other services. “Online” is defined as
processed through a merchant’s online checkout.
See appendix for detailed definitions.
8
What’s in scope?
Our analysis includes: Our analysis excludes:

Purchases of goods and services processed through a
merchant’s online checkout, including: Payments made:
• By international visitors
• Mobile and PC purchases
• Purchases that are informally arranged between
• Domestic and cross-border purchases
buyer and seller (e.g., on social media or WhatsApp)
• All locally-issued payment methods, including via P2P apps, wallets, bank transfers and cash
Pix, bank transfers and cash-based payment
methods • In-store purchases, including Pix, QR codes and
P2P
• Spanning retail, travel, gaming, streaming, gig
• In cash for ride-hailing and delivery app
economy apps and other services
• Purchases made via bank transfer or wire transfer
• One-time and recurring purchases
that do not pass through a merchant’s website and
e-commerce payment provider. This includes a
• B2C and B2B expenditure processed through a large part of SaaS and B2B expenditure
merchant’s website and its e-commerce payment
provider

9
The 2023 01 State of e-commerce 03 Marketplaces and platforms
E-commerce 02 Multi-rail convenience 04 Cross-border opportunity
Blueprint
State of digitization and e-commerce in Latin America
Market snapshot, penetration, and the digital transformation

11
The pandemic boom of e-commerce has subsided, but the
industry is still growing 20%+ annually
Total e-commerce volume across 15 markets in LAC
$1,000 50% Latin American e-commerce

$509 bn in 2023 $923
hit its growth peak in 2022, fueled by mass
$900 45% digitization that was achieved in 2020 and 2021
$800 39% $762 40% during pandemic-related lockdowns.
36%
Since then, growth has stabilized but around a new
$700 $632 35% normal – the digitized Latin American for whom e-
commerce is a normal part of everyday life.
$600 30%
27% Going forward, the industry will still grow in excess of
24%
$500 25% 20% annually, still driven by digital adoption in
21% $401 laggard markets, most notably Mexico.
$400 20% 21% 20%
21% Universally, e-commerce is being propelled by:
$289
$300 15% 1. the adoption of alternative payment methods
$212
$200 $176 10% 2. Improving technology and UX, especially in the
$146
mobile channel
$100 5%
3. Innovations coming from marketplaces and
$- 0% platforms
2018 2019 2020 2021 2022 2023 2024 2025 2026 4. Increasing investment in cross-border
e-commerce
Transaction volume, USD bn YoY growth

12
Source: PCMI Data Library
Retail continues to dominate but is overshadowed in growth
by “Other” – including digitizing payment verticals
E-commerce market volume, USD$BN

2023-2026 Retail continues to dominate the
Retail Travel Ride hailing and delivery apps Streaming Gaming Other industry, representing 53% of total
CAGR
expenditure. Is the #2 in growth, as
marketplaces and retailers
21% aggressively invest in their digital
channels and e-commerce claims an
increasingly high share of spend vs.
16% the physical channel.
“Other” is being rapidly driven by
30% digitizing payment verticals, including
13% taxes, education, bill pay, government
services, and most recently, gambling,
12% especially in Brazil and Colombia.
Digital verticals like streaming and
3% 13% gaming are enjoying steady growth
but at a moderate rate now that
53% 24% 5%
digital habits have been established
2% 9% post-pandemic.
Other includes: SaaS, tax payments, fees and licenses, mobile top-ups, healthcare, insurance, gambling, and other
miscellaneous services

13
Within online retail, Latin America shines on the global
stage as the fastest-growing world region
Asia US Europe Latin America Africa
Retail e-commerce
volume, 2023 $1,811 $925 $631 $272 $36
Bn USD
2022-2023 YoY growth 7% 14% 12% 30% 11%
CAGR 2023-2026 12% 11% 9% 21% 15%
Annual e-commerce
spend per capita $657 $3,370 $1,017 $467 $83
In 2019, annual per capita retail e-commerce spend in Latin America was $219, compared with $467
Methodology note
today, demonstrating how much the industry has matured. Yet, spend per capita in Asia provides
Please note the above data represents retail e-commerce only. PCMI insight into the growth potential the LAC region still has.
has not yet conducted a rigorous analysis of other world regions, and
so global data is taken from Statista, one of the only sources With well over 70% mobile, internet and financial account penetration, combined with improving
comparing world regions with a consistent methodology and scope.
However, PCMI has not fully vetted this data and uses it as a
financial infrastructure, such as real-time payments, increasing card tokenization and greater
reference benchmark only. Comparisons between PCMI Latin presence of digital wallets, Latin America is the fastest-growing e-commerce market in the world.
America data and global Statista data should be done with caution.

14
Nearly 33 mn new consumers will use the internet for the
first time between 2023 and 2026 in LAC*
Internet has achieved early universal penetration, with 85% of Latin Americans now accessing the Internet
Internet users, as a share of total population

98% 95%
92% 93% 89% 92% 90%
90% 83% 84% 83% 83%
80% 81% Simple avg.
85%
2022
2023
2026
Argentina Brazil Chile Colombia Ecuador Mexico Peru
2023-26 +2 mn +5 mn +1 mn +5 mn +2 mn +12 mn +6 mn
* considering the region’s top 7 markets Cash-based economies

poised for growth
Sources: EIU, PCMI analysis 2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com
15
In 2023, 66% of all adults shop online while 71% of have a
financial account
Digital penetration, % of adult population
99% 96% 97%

90% 92%
87% 86% 87%
80%
72%
58% 60%
54%
Online shopper* 45%
Financial account
users
Argentina Brazil Chile Colombia Ecuador Mexico Peru
Annual e-commerce
$607 $1,269 $1,735 $812 $402 $580 $741
per capita spend
Value-added services fuel growth Access fuels Digitization fuels growth

Multi-rail products become crucial growth Cash remains crucial
* Individuals who have shopped online in the past year, as a share of the adult population

16
Sources: EIU, local central bank and e-commerce associations, PCMI analysis
Markets with low e-commerce penetration of GDP and high
e-commerce adult penetration are ripe for growth
Underpenetrated markets have growth opportunity by enabling alternative payments and migrating in-person retail volume to e-commerce.
Highly penetrated markets are more competitive and must compete in user experience and payment method innovation.
Mapping e-commerce forecast clusters

100%
Digitized & mature
E-commerce penetration of adults
90% Digitally resistant & Digitized & underpenetrated

underpenetrated Argentina Brazil
80% Chile Colombia
Dominican Republic
Mexico Panama Costa Rica
70%
Paraguay
Uruguay Digitizing & mature
60%
Peru
50%
Digitizing &
40% Guatemala
underpenetrated Ecuador
30%
El Salvador
20%
Bolivia
10%
0%
0% 2% 4% 6% 8% 10% 12% 14%
E-commerce penetration of GDP

17
Top growth markets are Peru, Mexico, Paraguay and Colombia
Brazil is the largest market but with the slowest growth trend. Big opportunities lie in still digitizing markets

2023 volume 2023-2026 CAGR
$250 40%
35% 35%
$510 bn in regional volume
34%
33%
$200
30%
27% 27% YOY
25%
$150
22%
24%
22%
22% CAGR (2023-26)
21% 21%
20% 20% 20%
18% 18% 18%
$100 17% Several markets are on the
15%
precipice of digital payment
10% super cycle as the market ripens
$50 to exhibit a major cash
5% conversion to digital. Instant
$0 0% payments and wallets will be
BR MX CO CL AR PE EC CR PA DR UY GT SV BO PY instrumental this growth across
the region.

18
Since 2020, the mobile channel dominates e-commerce
70% of the region’s e-commerce flows through mobile devices

$1,000 70%
$900 58%
60%
$800 50%
48%
$700 50% Latin American adoption of
$600 37% 40% smartphones
$500 surpasses that of desktop
$400
30% computers.
32%
$300 27%
23% 24% 20% User experience
$200 enhancements, like:
10% • Tokenization
$100
• Card-on-file
$0 0% • Instant A2A payments
2018 2019 2020 2021 2022 2023 2024 2025 2026
Share of desktop Share of mobile Y-O-Y growth of mobile are driving mobile spend

19
Multi-rail convenience
How real-time payments and digital wallets drive growth

20
The wholesale dominance of cards is being challenged as the
region settles into a multi-rail environment
Payment method market share, % of e-commerce Overall, Latin Americans shoppers have come to
CAGR,
volume in Latin America 2023- seek simplicity and flexibility, driving the P2P-
ification of payments and inevitable rise of multi-
2026 rail platforms. Digital wallets, which store
Credit card 48% 18% credentials, enable real-time local bank transfers,
and provide value-added services, are gaining share
Pix 16% over payment methods that merely move money.
26%
In 2018, credit cards represented 55% of e-
Debit card 10% 30% commerce volume and have steadily lost share
since then, in favor of alternative payment
Digital wallet 9% 20% methods. Today, cards are still the leading payment
method (48%) but face much greater competition,
Cash vouchers 9% 15% primarily from real-time payment schemes, which
are taking root around the region and projected to
Bank transfers 5% 38% grow the fastest (35% CAGR).
Buy Now Pay Later 1% Pix, the Brazilian Central Bank’s real-time payment
35%
network, has scaled astronomically and alone has
Other* 2% claimed 16% of the entire region’s e-commerce
15% volume in 2023, surpassing debit cards, which until
now have been the #2 payment method.
*Other includes payment methods such as gift cards, click-and-collect, and direct carrier billing.
Sources: PCMI Data Library

21
The RTP question:
Brazil’s Pix P2M (online + offline) has exceeded debit card
volume
P2M volume by quarter,
billions USD
120
100 $100 bn
80
• Both credit and debit card volumes
Volume, billions USD
fell in Q1 2023, while Pix P2B

60 $61 bn volume grew 6%
$56 bn • Pix is effectively stealing share from
40 debit card volume, especially in e-
commerce, where reportedly 70%+
20 of online merchants accept Pix
0
19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1
Pix P2B Credit card Debit card
Source: Central Bank of Brazil, GMattos 2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com
22
In e-commerce, Pix growth has been even more remarkable,
set to claim 38% of online sales by 2026
Payment method breakdown of Brazilian

e-commerce volume Drivers of Pix in e-commerce
Cards Pix Wallets Other
Since its launch, Pix has transformed the Brazilian
payment landscape, with greatest adoption in e-
commerce.
2019 67% 3% 12% 18%
Merchants incentivize the use of Pix with
aggressive discounts (up to 10%), thanks to Pix’s
low interchange fee (1%), instant settlement, and
no risk of chargebacks.
2023 51% 27% 8% 14% Pix has been adopted rapidly by consumers thanks
to merchant discounts, the fact that most debit
cards are not enabled for e-commerce, low credit
card penetration, and fear of exposing card
credentials online.
2026 45% 38% 8% 9% With payment initiation, enabled via Brazil’s Open
Finance, merchants can now pull funds from
customers’ bank accounts directly, without
causing a redirect to their online banking, which
Leading Brazilian merchants offering up to 10% reduces friction in Pix transactions and will
discount for purchases with Pix online continue to boost this payment method.

23
Brazil and Colombia lead the region’s jump towards RTP
Despite still-clunky online user experience, Pix and PSE have achieved significant penetration, demonstrating the demand for account-based
online payment methods
2023 share of e-commerce volume and growth of real-time bank

transfer schemes Still in the works
• Colombian Central Bank’s
60% Sistema de Pagos Inmediatos
will improve upon PSE,
expected to be launched in
2024
39% 40% • Mexico’s Central Bank is
32% rolling out Dinero Móvil, or
29% 30% “DiMo”, an alias-based
25% platform to enable SPEI
transfers via phone number.
This is expected to simplify
10% 10% SPEI transactions and expand
3% its use
• The Central Bank of Costa
Bolivia Brazil Colombia Costa Rica Mexico Rica is working with Central
American governments to
Share Y-O-Y enable cross-border SINPE

24
Source: PCMI Data Library, local central banks
Despite competition from alts, cards still lead, especially in
early-stage markets
High card penetration tends to be correlated with low e-commerce penetration over GDP
To some extent, the, share of cards within e-

commerce is a proxy for market maturity: a
Share of cards in e-commerce expenditure high share (Ecuador, Panama, DR) indicates
100% minimal development of alternative payment
90% methods, which restricts access to e-
80% commerce to only higher income consumers.
70% A lower share (Brazil, Colombia) indicates
60% more variety of payment methods, catering to
50% a more diverse customer base.
40%
30%
Despite the downward trend, cards cannot be
discounted, representing 48% of total spend,
20%
three times the volume of the #2 payment
10%
0%
method, Pix. Cards are still number 1 for
several reasons:
a
a
ay
or
ic
a
r
il
o
ru
ica
ia
ay
ile
do
in
m
bi
• Most widely accepted by merchants
az
al
ic
bl
liv
ad
gu
Pe
gu
Ch
aR
m
m
ex
na
nt
Br
ua
pu
Bo
lv
te
ra
ru
lo
ge
M
Pa
st
Ec
Re
Sa
ua
• Enables installments, which can represent
Co
Pa
U
Ar
Co
n
El
G
ica
more than 50% of spend in some markets

in
and verticals
om
Debit card Domestic only credit card Internationally-enabled credit card

D
• Low friction, thanks to tokenization, one-

E-commerce
6% 6% 3% 2% 7% 1% 1% 9% 4% 4% 4% 10% 5% 13% 11%
click pay and recurring payments
share of GDP

25
Wallets are proliferating across Latin America but only a handful are
achieving scale in e-commerce
Wallets represent 9% of total e-commerce expenditure, growing 18% per year. Wallets provide additional value in security, UX and loyalty and in some
cases, represent a hub for multi-rail payment convenience. In practice, for many, wallets represent an additional form factor for card payments, with an
estimated 70% of wallet volume flowing over card rails
Value-added solutions driving

digital wallet adoption
• Access to credit, reaching traditionally
• Significant presence only in • Regional leader among wallets • Available in AR, BR, CO, CR, SV, underserved populations
Brazil and Mexico, where it in e-commerce GT, MX, PA, and PE and has
• Loyalty programs, championed by merchant
operates locally • Enabled in 8 markets: AR, BR launched in 8/9 in only in the
wallets
• In other markets, enabled for MX, UY, CO, CL, PE, and EC past two years
• Ease of use
cross-border only • Enables cards, multiple • A highly popular option,
especially for mobile payments, • One-stop-shop for payments, including retail,
• Enables cards and bank alternative payment methods bills, and P2P
transfers in Mexico and only and a stored balance, but cards but limited in reach due to low
cards in Brazil are in first place penetration of Apple vs. Android • Ability to split payment methods
(approx. 14% vs. 84% in 2023) • Ability to fund the wallet with a variety of
• Strength in cross-border e- • Is a popular branded payment payment methods
commerce, where it has solution that leads to loyalty • Highly aspirational and
generated a reputation for experiencing high growth rates • Additional PSPs adding wallets as payment
security and trust • Enables cards only methods
Sources: PCMI Data Library, company websites, StatCounter 2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com 26
Marketplaces and platforms

27
Retail remains the most important vertical and serves as the
digital hook for those who do not shop online
• A handful of dominant retailers

E-commerce market volume, USD$BN lead e-commerce in each market
2022 2023 2026
$450
$400
$350
$300 $272
$250
$200 • Retail volume dominate e-
$150 $123 commerce sales, primarily facilitated
$100 $66 by marketplace platforms that enable
$50 $23
large and small businesses alike
$15 $9
$0 • Food retail and delivery platforms fuel
Retail Travel Ride hailing and Streaming Gaming Other growth in small markets
delivery apps

28
Mexican retail groups are creating
massive ecosystems designed to capture SEL C/D
Mobile and internet

Consumer
services
Loyalty
Account
Market
Acceptance and
Credit
Merchant
Logistic
services
Mobile
Optimizing top up sales

2
299
Breaking down LAC’s leaders: the marketplace platforms
that bundle solutions
• Latin American retails are growing

Self-sustaining ecosystems into e-commerce platform for
their own sales, and expanded into
becoming marketplaces, with
Own Marketplace Digital payment, credit, and logistics
Retailer
e-commerce platform marketplace capabilities.
• Falabella and Exito are even

leveraging real estate of their
physical hubs to better serve
their logistics customers.
Payments Logistics
• To better serve their clients,
platforms partner with digital
goods and service providers, like
Credit Real estate streamers, to bundle and
complement their offer.
30
Source: company websites 2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com
Food retail represents between 1/3 and 2/3 of total retail
sales in the region's 7 largest market
Food share of total retail, 2023 • The pandemic drove the rise of large retailers with dominant
physical market share to become leading e-commerce platforms,
USA 32% like Walmart in Chile and Mexico and Falabella’s Tottus in Chile In 2022, Walmart
and Peru. Chile accounted
Argentina 36% for 13% of Chile’s
total retail volume
Chile 43%
Mexico 47% • Food retailers in particular have built out physical networks and
can leverage their proximity to customers to facilitate alternative
Colombia 48% payment methods and generate trust, like Sirena’s SirenaCash in
the Dominican Republic
Peru 49%
• In the Caribbean, supermarket platforms are dominating e-
Brazil 52% commerce volume like Bravova in the Dominican Republic and Hi
Lo Food Stores in Jamaica
Ecuador 61%

3
311
Source: interviews, USDA
The cross-border opportunity

32
Domestic e-commerce vs. cross-border
Cross-border growing faster than domestic
Total LAC e-commerce volume, domestic vs. cross-border
$1,200 16%
15% Cross-border e-commerce will represent $70 billion in
16%
$1,000 2023, or 14% of the total market in 2023
15% 15% Cross-border e-commerce is growing faster than
domestic, reaching 15% market share by 2026. Growth
$800 15%
14%
drivers include:
14% • Increasing acceptance of alternative payment methods
$600 14%
13% like Pix and PSE by xborder payment providers
14%
13% • A growing number of xborder payment providers focusing
$400 13% on Latin America, especially at the enterprise level
13% • Xborder payment enablers expanding to new markets

$200 beyond Brazil and Mexico
12% • The growth of digital verticals, especially SaaS, streaming,
gaming, gambling, crypto
$0 12%
2021 2022 2023 2024 2025 2026 • Domestic market saturation in some markets (Brazil)
Xborder Domestic Share, XB
Sources: PCMI Data Library 2023 All rights reserved. ǀ Private and Confidential ǀ www.paymentscmi.com
3
333
An increasingly fragmented enablement market
More than a dozen companies are chasing a $70 billion cross-border market
Growing number of cross-border e-commerce

enablers and the “merchant of record” model,
enabling international merchants to accept local
Latin American payment methods and a local look
and feel, without having local presence in the
country. This is creating increasing fragmentation of
cross-border payments and increasing competition
among payment facilitators looking to serve
enterprise-level merchants in global expansion.
These companies are increasingly enabling payouts
as well as pay-ins, enabling Latin American
consumers to receive xborder payouts from gig
economy, content and freelance platforms around
the world, to bank accounts, digital wallets and debit
cards.

34
Technology
driving the
future of
e-commerce

Generative AI:
Lots of buzz…no meaningful use cases yet
PCMI prediction
Niche, proprietary technology will be more successful than
layered solutions that integrate ChatGPT and return
information to customers

36
Data management &
personalization
Huge industry focus on data for
fraud management, marketing,
transaction authorization, cart
abandonment, etc.
PCMI prediction
Beyond 2026, growth in e-commerce will depend
on data optimization and user experience, not
payment method innovation

37
Payment flexibility and credit the
next innovation in payments
Including split payments, credit over Pix
and A2A payments, innovations in BNPL
PCMI prediction
Increasing access to credit is the next wave of disruption
in the region

38
1
In a multi-rail world, product-use case match becomes the game
Credit, debit, transfers and wallet payments will settle into their respective use cases and
payment method breakdown will settle into a new normal
2
Platforms are driving an increasing share of spend. Platforms + wallets
driving seamless commerce will move Latin America into a new era of online shopping
Final takeaways
3 Growth in Brazil is beginning to stabilize while the largest growth

opportunities come from Mexico and Peru, as cash is converted into digital.
Account-based payments and wallets will facilitate this growth
4 Cross-border is growing faster than domestic overall, but cross-border

payment enablement is becoming increasingly fragmented and competitive
5 Future e-commerce growth depends more on infrastructure than payments. Open Finance,
data optimization, generative AI, and credit scoring will all be powerful growth levers over the medium-term

Definitions

Definitions (1/2)
E-commerce is a term used broadly. PCMI applies the following definitions in this report
In this data set, “e-commerce” refers to all online purchases of goods and services, regardless of the device or payment method used. “Online” is defined as
processed through a merchant’s online checkout.
Our analysis includes:
• All product and service verticals, including retail, travel, and digital goods and services.
• Retail is defined as: All physical products purchased directly from the merchant or marketplace
• Travel is defined as: Travel services including airline tickets, car rentals, tour packages, hotels and Airbnb stays
• Ride hailing and delivery is defined as: Digital services that include services include ride-hailing and food delivery apps, this excludes payments made in
cash.
• Online gaming is defined as: Spend on online games or in-game purchases, which can be played via mobile, desktop, or a dedicated console.
• Online streaming is defined as: Access to media players that transmit video and/or audio content, typically purchased as a subscription.
• Other digital goods and services is defined as: All digital goods and services including online education, digital downloads, mobile top-ups, SaaS, and
recurring purchases such as monthly bills, insurance payments, school tuition payments, home ownership association fees, taxes and government licenses
and fees if they are paid online over an e-commerce gateway. These expenses are not included if they are paid via online banking or direct debit from a
checking or savings account. Recurring payments to a credit or debit card are included, as are one-time payments over an online ACH portal such as Botón
PSE in Colombia.
• Cross-border purchases made with locally issued payment methods
41
Definitions (2/2)
E-commerce is a term used broadly. PCMI applies the following definitions in this report
• All purchases made using locally-issued payment methods including:
• International and local credit and debit cards, online bank transfers, cash vouchers, such as Oxxo in Mexico, digital wallets such as PayPal, Mercado
Pago, Apple Pay, cash on delivery, and other miscellaneous payment methods.
• Cash voucher is defined as a payment method that enables a shopper to make an online order, receive a bar code or unique PIN and use that bar code
or PIN to make the payment in cash at an affiliated retail location. Such platforms often allow payment using an online bank transfer. Examples
include Oxxo in Mexico, PagoEfectivo in Peru and boleto bancario in Brazil. Please note that SafetyPay is included in bank transfers
• Digital wallet: PCMI defines a digital wallet as a payment method that stores any funding source on file, including a credit card, debit card, bank
account, or stored balance, and uses that funding source to remit payment. E-commerce volume falls into the digital wallet category if the wallet
brand is selected at checkout, even if a different funding source (such as a credit card) is ultimately selected to fund the purchase. Examples include
card-on-file wallets such as PayPal and Apple Pay, as well as stored balance wallets like Tigo Money and Mercado Pago.
• Bank transfer: Bank transfer is defined as a payment originating from a customer’s bank account, facilitated by an online service provider. PSE
Colombia is included in this category. Due to its large volume, Pix (Brazil) is in its own category, but by this definition, is considered a bank transfer.
• BNPL is defined as a payment button offered by a BNPL fintech that enables the shopper to finance the purchase at the time of checkout, with
multiple payment methods, including credit cards, debit cards, bank transfers or cash.
• B2C and B2B expenditure that is processed through a merchant’s website and its e-commerce payment provider.
42
Do you
want to go
deeper ?
Option 1 –
The Extended PCMI
E-commerce Blueprint report
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Methodology and FAQs
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Methodology and FAQs

45
Lindsay Lehr
Managing Director
lindsay@paymentscmi.com
Andreas Farge
Thank You
Director www.paymentscmi.com

2023 PCMI Blueprint Standard August-2023

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The 2023 Latin America

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With payments and commerce transcending

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Our global coverage

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State of digitization and e-commerce in Latin America 11

Marketplaces and platforms 27

Do you want to go deeper? 43

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Inconsistent methodologies Incomplete coverage of Failure to verify with local

PCMI’s Latin America e-commerce data is different

1. Applies the same methodology across 15 LAC markets

How do we define e-commerce?

See appendix for detailed definitions.

Our analysis includes: Our analysis excludes:

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E-commerce 02 Multi-rail convenience 04 Cross-border opportunity

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$1,000 50% Latin American e-commerce

Transaction volume, USD bn YoY growth

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E-commerce market volume, USD$BN

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2022-2023 YoY growth 7% 14% 12% 30% 11%

CAGR 2023-2026 12% 11% 9% 21% 15%

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Internet users, as a share of total population

Argentina Brazil Chile Colombia Ecuador Mexico Peru

* considering the region’s top 7 markets Cash-based economies

Digital penetration, % of adult population

99% 96% 97%

Argentina Brazil Chile Colombia Ecuador Mexico Peru

Value-added services fuel growth Access fuels Digitization fuels growth

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Mapping e-commerce forecast clusters

90% Digitally resistant & Digitized & underpenetrated

E-commerce penetration of GDP

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E-commerce market volume, USD$BN

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E-commerce market volume, USD$BN

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Sources: PCMI Data Library

fell in Q1 2023, while Pix P2B

Pix P2B Credit card Debit card

Payment method breakdown of Brazilian

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2023 share of e-commerce volume and growth of real-time bank

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To some extent, the, share of cards within e-

• Enables installments, which can represent

more than 50% of spend in some markets

Debit card Domestic only credit card Internationally-enabled credit card

• Low friction, thanks to tokenization, one-

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Value-added solutions driving