StarsPay has all the necessary infrastructure to ensure that your company can easily serve multiple countries in Latin America, a market that stands out globally with promising projections for the coming years. We’ve already talked about Mexico and the convenience of SPEI, the massive potential of Chile, and the steady growth in Peru. Now, it’s time to explore more details about the strength of the Colombian market.
Want to operate in the Colombian market and don’t know where to start? Get in touch with StarsPay.
The country has over 52 million inhabitants, making it the second most populous in South America, only behind Brazil. According to the World Economic Outlook report from the IMF (International Monetary Fund), Colombia’s GDP in 2023 was estimated at $363 billion, only surpassed by Brazil, Mexico, and Argentina in Latin America. With booming sectors like iGaming and eCommerce, Colombia represents an excellent opportunity for those looking to reach new customers in areas supported by StarsPay.
iGaming in Colombia
When discussing StarsPay and Colombia, it’s impossible not to mention the country’s iGaming market, the first in Latin America to be regulated, back in 2016. Eight years have passed since the approval of Law 1,753, the eGaming Act, giving enough time for the industry to mature. Today, Colombia has one of the most advanced regulatory frameworks on the continent. Noteworthy aspects of Colombian regulation include well-established KYC (Know Your Customer) and AML (Anti-Money Laundering) practices, areas where StarsPay can assist your company.
Since the start of the legal iGaming market in Colombia, the sector’s numbers have skyrocketed and are expected to continue growing. According to Statista, a research company, the industry grew from $239 million in 2017 to a projected $1.28 billion in 2024. The expected annual growth rate is 9.53% until 2029, which would result in a total revenue of over $2 billion that year. According to a study by Env Media, with data as of April 2024, Colombia ranks only behind Brazil and Mexico in terms of market size for betting in Latin America.
The report also revealed key insights regarding the market’s penetration among the Colombian population, which accelerated during the pandemic. “In 2023, 776.6 million visits to betting websites were recorded from 9.5 million unique users,” according to the study. “The online casino sector showed the highest growth, followed by bingo, poker, and sports betting. Approximately 55% of Colombian adults engage in some form of betting, reaching nearly 20 million active players.”
eCommerce in Colombia
In the eCommerce sector, Colombia also stands out in Latin America, ranking third, behind only Brazil and Mexico. Data from PCMI (Payments & Commerce Market Intelligence) estimates Colombia’s online shopping sector at $42.3 billion. Projections indicate an explosive growth of 27% per year until 2026, which would bring the market’s total revenue to $87 billion.
Also according to PCMI, 86% of the adult population already shops online, and 92% have a bank or fintech account. The growing presence of mobile devices and mobile data networks, a trend throughout Latin America, is also evident in the Colombian market. Of the total online purchases, 76% are made via mobile phones or tablets, while 24% happen on desktops. International credit cards and bank transfers are the primary payment methods, accounting for 71% of the total.
Video Games in Colombia
The video game market in Colombia also shows significant growth projections for the coming years. According to Statista, the industry’s revenue will reach $550 million in 2024. It is expected to grow 6.78% annually until 2027, when revenue will reach $670 million. In terms of market penetration, the estimated number of users is 9.6 million, representing 16.1%, with a projection to reach 18.3% of the population by 2027.
An article from Business Wire, described the positive momentum in the country’s gaming industry. There are over 80 national companies, which collaborate with international giants, and a growing workforce that is increasingly qualified to handle innovations in the industry. “Local developers are characterized by their self-taught spirit, high work capacity, industry experience, and quick adoption of new technologies,” the article states. “Colombia has over 145,000 professionals capable of working in the sector and seven universities with specialized programs. The number of graduates in software and IT has doubled since 2010, demonstrating the country’s commitment to talent development for the industry.”
Count on StarsPay
For any company operating in the four sectors served by StarsPay, reaching Colombian customers can be a crucial differentiator, providing exposure to markets with relevant numbers and substantial growth potential for the coming years. On the other hand, entering a new country also brings challenges, such as dealing with local regulations and understanding the preferences of each population.
StarsPay can greatly assist you in this process. Through our API, you can easily integrate to start operating in Colombia, with full support from our team of specialists to receive payments directly into your bank account, in your local currency, and with great cost-efficiency. You also enjoy benefits like zero chargebacks and access to 24/7 bilingual support, ready to guide your business whenever needed.
Get in touch with the StarsPay sales team now via email at [email protected] and find out how we can make a difference for your business.
