COUNTRY SPOTLIGHT
BRAZIL: THE LARGEST ONLINE
ECOMMERCE MARKET IN LATIN AMERICA
In area and population, Brazil is the largest country in South and
Latin America. When it comes to ecommerce, Brazil is also on
top, accounting for more than 60 percent of ecommerce sales
in the region. It represented USD$13 billion (BRL 31.1 billion) in
ecommerce sales in 2013—an increase of 29 percent over 2012.1
Part of the four BRIC countries (Brazil, Russia, India, China), Brazil
is one of the most promising countries for sustained economic
growth over the next several years. Hosting the 2014 World Cup and
the 2016 Olympics will add to an already active economy.
A young and active online marketplace
With more than 200 million citizens and an average age of 30, Brazil
represents a growing market for online shopping. Despite dramatic
gaps between the richest and poorest households, the Brazilian
middle class is driving the economic growth in all consumer
markets—accounting for 59 percent of all B2C ecommerce sales in
Latin America.
Highly connected and quick to adopt social media
Consumers in Brazil spend more than 27 hours per month on their
computers and spend more than one-third of that time on social
media sites. After United States residents, Brazilians represent the
largest national group of users for Facebook (65 million), Twitter
(41 million), and YouTube. According to eMarketer, 79 percent of
Brazilians with Internet access use social media.2
Mobile consumers and retailers
About half of Internet users in Brazil use their mobile phones to go
online3, while only 8 percent use tablets. According to a December
2013 report from Saatchi & Saatchi and Datafolha Instituto de
Pesquisas, mobile Internet use in Brazil grew by more than 78
percent in the previous 20 months. Sharing through social media
has driven much of that growth. As retailers and service providers
continue to invest in ecommerce, mobile devices are likely to
become the most popular means of going online.
COUNTRY
Full Name: Federative Republic of Brazil
Capital: Brasilia
Size Rank: 5th largest country in world
PEOPLE
Population: 200,000,000+
Average Age: 30
Official Language: Portuguese
ECONOMY
Currency: Brazilian Real (R$)
GDP: $2.422 USD (2013 est.)
GNI per capita: $10,720 USD
INTERNET USERS
Age 18-24: 18 percent*
Age 25-34: 30 percent*
*This online population represents more than 40 percent of
the total in Latin America4
Key online payment methods
Brazil is the fourth largest payment card market in the world, with
the highest card penetration of any country in Latin America: 2.1
cards per person. Because Brazilian ecommerce is both national
and international, buyers and sellers regularly cross borders to
do business. As a result, the most common payment methods
are international and local credit cards such as Visa, MasterCard,
American Express, Diners Club, and Hipercard. Cielo and Rede
acquirers based in Brazil, also offer electronic payment products
and services.5
PREFERRED PAYMENT METHODS
Credit Card
69%
24%
4%
3%
Boleto Bancario
Boleto Bancário, a local bank transfer scheme regulated by the
Brazilian Federation of Banks, allows users to transfer money using
the ATM, branch facility, or online presence of any bank. Some post
offices and private companies can also process payments. Nearly
one-quarter of Brazilian online shoppers use Boleto Bancário.
Consumer preferences drive payment methods
Merchants in Brazil have long offered installment credits for buyers
to finance their purchases with partial payments made over time,
a common practice across all industries. While installment credits
have been adopted by some card issuers, in recent years pay-now
cards have grown at 7 percent annually and pay-later cards have
grown at more than twice that rate at 17 percent.6
How Digital River can help
Digital River has extensive experience doing business in Brazil since
entering in 2007. By partnering with us, you’ll get a cost-effective
and customized payment program for Brazil without the overhead
costs and risks of setting up and maintaining your own local entity.
In addition, we will consolidate and streamline all transactional data
into one reporting structure for reconciliation.
Whether you have a Brazilian entity or not, we can provide a direct
connection to our partner acquirers Cielo and Rede, along with
regional cards such as Visa, Hipercard, ELO, Hiper, and alternative
payments such as Boleto Bancário. Our business models can
support your business growth today—and tomorrow.
Debit Online
Other
*Source: Cross-Border Ecommerce Report, The Paypers, 2013
About Digital River, Inc.
Digital River, the revenue growth
experts in global cloud commerce, helps
companies of all sizes build and manage
their online businesses, maximize online
revenue, reduce costs and minimize
risk. Founded in 1994, the company is
headquartered in Minneapolis with offices
across the United States, Asia, Europe
and South America.
Contact us today to learn more
about your global expansion.
E: [email protected]
Brazilian Association of Electronic Commerce
2
eMarketer report, Brazil Social Media: The Mobile Middle Class Goes Social.
3
F/Nazca Saatchi & Saatchi & Datafolha Instituto de Pesquisas, F/Radar 13a edição, 20 December 2013
4
comScore Media Metrix
5
The Paypers, Cross Border E-Commerce Country Report—Brazil 2013
6
Datamonitor, Payment Cards in Brazil, April 2012
1
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