StarsPay operates in four of the main areas involved in online payment processing. We’ve already discussed the strength of iGaming, the massive gaming market, and the rise of cryptocurrencies on exchanges. Now, it’s time to explore eCommerce, a sector that, like the other three mentioned, also shows enormous potential in Latin America and presents various challenges in which we can assist your company.
Does your company engage in online sales and want to operate in multiple Latin American countries? Get in touch with StarsPay and find out how we can help you!
eCommerce is a term used to define online shopping, which has grown alongside the increased penetration of the internet and mobile devices worldwide. Today, it’s rare to find a product that cannot be purchased in virtual stores, often at better prices and conditions than in physical stores. Currently, StarsPay provides services in five countries across the continent: Brazil, Mexico, Chile, Colombia, and Peru—nations that represent the majority of the Latin American market in this sector, with positive growth projections for the coming years.
eCommerce Figures
In addition to the greater access people have to the internet and the advancement of delivery logistics, the eCommerce sector received a significant boost during the COVID-19 pandemic. At a time when the world faced various challenges, online shopping emerged as an option to maintain isolation, causing eCommerce statistics to skyrocket. As a result, according to Statista, 2022 and 2023 saw a natural decline in eCommerce revenue in Latin America compared to 2021. However, in the overall context, the sector continues to grow, and Statista projects that Latin America will reach $146 billion in revenue in 2023, a 14.7% increase from the previous year. For comparison, the global market in 2024 is estimated at $1.46 trillion.
Latin America is expected to see annual growth of 10.83% until 2029, resulting in a market volume of $244 billion. The revenue breakdown by country further highlights the importance of the countries served by StarsPay in this sector. According to Statista, Brazil accounts for 28.51% of total revenue in Latin America and the Caribbean, followed closely by Mexico, with 26.37%. In other words, these two countries alone represent more than half of the market. Chile, Peru, and Colombia are also among the top six, contributing another 19.2% to the total. Thus, the countries where we provide services account for 74.19% of revenue among Latin American and Caribbean nations.
How StarsPay Can Help
Now that we understand the context of eCommerce in Latin America, it’s important to discuss how StarsPay can facilitate business operations in this scenario. Despite the significant amounts involved, eCommerce also brings challenges, particularly when serving multiple countries. In each region, people have their preferred payment methods, such as Pix in Brazil and SPEI in Mexico. In this sector, especially, the importance of a fast and easy payment process cannot be underestimated.
According to a 2024 study by the Baymard Institute, 70% of online shopping carts are abandoned before the purchase is completed. The study, based on data from 49 different surveys, shows important consumer behavior trends. The main reason for abandonment was the “high additional cost between taxes, fees, and delivery.” Other reasons include “checkout process too long/complicated,” “not enough payment methods,” and “website had errors/crashed.” Even after choosing your product, the customer might abandon the purchase if the final step of the process isn’t optimized.
When operating in different countries, you also need to deal with specific local regulations, which can place a significant burden on other areas of the company and create compliance issues. Additionally, another common concern with online transactions is security. Fraudsters are constantly creating new types of scams, and consumers are increasingly worried about their online data. In the same Baymard study, the third most cited reason for cart abandonment was “I don’t trust entering my credit card information on the website.”
In all of these areas, StarsPay can make a difference. With our API and simple integration, your company can accept a variety of payment methods, ensure a secure environment, and enjoy fast processing. The customer pays in their local currency, and their data is protected, while you receive the funds in your bank account, also in your local currency, with excellent cost-effectiveness. Take advantage of this opportunity to differentiate your business and access markets with great potential.
Contact the StarsPay sales team now at [email protected] and learn how we can make a difference for your company.
