Payment Methods in Brazil: the 4 most popular in the country
In Brazil, the largest e-commerce market in Latin America, it is crucial to offer agility, convenience, and security to compete successfully. This also means offering local payment methods. Consumers seek fast and easy experiences when purchasing and paying, extending beyond traditional methods such as boleto bancário (bank slip) and credit cards. Pix and other innovative […]
Andressa MaltacaJune 21, 2023
In Brazil, the largest e-commerce market in Latin America, it is crucial to offer agility, convenience, and security to compete successfully. This also means offering local payment methods.
Consumers seek fast and easy experiences when purchasing and paying, extending beyond traditional methods such as boleto bancário (bank slip) and credit cards. Pix and other innovative forms are becoming important trends in the digital landscape.
In just 10 years, from 2012 to 2022, Brazilian e-commerce increased its revenue from R$ 22.5 billion to around R$ 170 billion, representing an accumulated growth of over 655%. To keep up with this transformation, the digital payment market also had to evolve, changing consumer preferences.
So, what are the 4 most popular payment methods in Brazil and how can you explore these opportunities? Keep reading to find out!
Brazil, an almost 100% connected internet powerhouse
Welcome to Brazil. A country filled with color, abundance, and internet users. That’s right. With the fifth-largest digital population in the world, the number of users is expected to reach 190 million by 2027.
With an agile and dynamic payment industry, Brazil has a high level of banking penetration, with 84% of the population having access to banking services, surpassing the regional average of 73.5%. This growth is driven by the digitization of the population and increased financial inclusion.
However, there is still room to grow and evolve the digital payment landscape in the country. Currently, only about 40% of e-commerce transactions are made with alternative payment methods, according to the Beyond Borders 2022-2023 study.
Brazil’s preference for payment methods such as installment purchases – which are only possible with credit cards – creates a significant opportunity in the market for other solutions to advance in the online scenario, offering greater inclusion and ease in payments.
Why diversify payment methods in Brazil?
Diversifying payment methods is essential to boost sales, promote financial accessibility, and increase customer satisfaction. Studies show that offering various payment options can increase conversion rates by up to 30%. Over 70% of Brazilian consumers consider the availability of different payment methods a decisive factor when choosing an online store.
In addition to driving sales, streamlined solutions such as fast and secure payments are crucial for the financial success of businesses. Agile payment methods for Brazil can reduce shopping cart abandonment by up to 80% during the checkout process, according to the Salescycle survey.
In e-commerce, it is also important to be attentive to emerging payment methods. According to the Beyond Borders 2022-2023 study, the “Buy Now, Pay Later” method has gained popularity among Brazilian consumers, potentially reaching over R$ 80 billion per year, considering all declined transactions due to credit card limits.
What are the most used payment methods in Brazil?
From credit cards to instant payment options, get to know the preferred payment methods of millions of people in Brazil for online shopping and payments.
1 – Credit Card
Credit cards are widely recognized and used in Brazil. They offer versatility, allowing for the installment of purchases. The leading credit card brands in the country include Visa, Mastercard, American Express, Elo, and Hipercard. Additionally, many cards offer rewards programs and exclusive benefits, increasing their popularity as a payment method.
2 – PIX
As instant as a blink of an eye! Pix quickly gained the trust of Brazilians as a preferred option for online payments in 2022, according to a survey by Febraban (Brazilian Federation of Banks), based on data from the Central Bank and the Brazilian Association of Credit Card Companies and Services (Abecs).
Pix offers transactions approved within seconds, regardless of the day or time. To use it, you need to register a key in the corresponding bank’s app, which can be an email, other personal data, or a random code. Additionally, Pix allows for QR code scanning, payment links, and the “copy and paste” function, making the instant payment method even more convenient.
3 – Boleto bancário
Boleto bancário is a traditional payment method in Brazil. In 2022, it accounted for 9% of the total online sales volume, according to AMI data. Boleto is a document issued by banks and companies and can be paid online or at bank branches and lottery outlets. It is widely used for bill payments, such as water, electricity, telephone bills, and online purchases. Boleto offers a secure and convenient option for those who prefer to avoid using credit cards or do not have access to them.
4 – Digital Wallets
Purchases made through digital wallets represented 11% of all e-commerce transactions in Brazil, according to the Beyond Borders 2022-2023 study. These wallets are expected to capture a 10% share of all online transactions in the region in the coming years, with an annual growth of about 20% in Latin American e-commerce until 2025.
- Mercado Pago: Owned by Mercado Livre, Mercado Pago is a multi-acquisition platform. In addition to offering various financial services, it is the most widely used digital wallet in Latin American e-commerce. It has 31.5 million users and is present in the major Latin American economies, including Brazil. Mercado Pago allows payment through credit cards, debit cards, and stored balances.
- PayPal: It is the leading digital wallet for digital commerce in Brazil, both for domestic and international purchases. Currently, it represents 42% of the total sales volume from digital wallets. In addition to Brazil, PayPal is present in several other countries in the region and has established a significant presence in the market due to its strong global brand and reputation for security.
- PicPay: It is a digital wallet app that allows users to send and receive money, pay bills, store loyalty cards, discount coupons, and more. Making payment as simple as sending a text message, the app helps businesses provide payment services integrated with marketing content. PicPay has 50 million active users in Brazil.
Expand your business by offering more payment methods in Brazil with EBANX
In conclusion, expanding your business by offering more payment methods in Brazil with EBANX is a strategic move that can yield significant benefits.
By tapping into a wide range of local payment preferences, you can enhance customer experience, build trust, and unlock new growth opportunities. With EBANX’s reliable and secure payment solutions, you can seamlessly navigate Brazil’s diverse market and cater to the unique needs of Brazilian consumers.
Rely on EBANX to expand your business, win Brazilian customers, and achieve success in one of the largest markets in Latin America. Discover more about market opportunities and payment methods in Brazil.