LatAm shows the most growth in online education spending
Although the percentage growth in online education was not as explosive as in some of the other market sectors explored in our report, total online education spend did grow by 69% across PayU’s seven Latin American markets between 2019 and 2020, according to data from PayU’s payments platform.
This was 10% higher than in PayU’s EMEA markets, led by Mexico and Argentina, which grew by 139% and 138% respectively. PayU also processed USD $350 million worth of education-related transactions in the Colombia in 2020, a 73% increase over 2019.
Although the value of educational transactions on our Brazilian platform only increased by 14% for the full year, spending was 59% higher in Q4 2020 than for the last quarter of 2019.
Digital learning in Eastern Europe takes a step forward
While Eastern Europe represents approximately a quarter of Europe’s total population, the e-learning market in Eastern Europe represents just over 10% of the total European market for online education. The delta between these two figures shows the potential for the education vertical in this region as a whole.
Spending levels in some key Eastern European markets are already catching up. The total amount of consumer spend on education in Romania was estimated at $1.8bn in 2020, which puts Romania among the top 15 EU countries for consumer spending on education despite having a significantly lower GDP per capita. With more and more education spend moving online, Romania’s digital landscape for educational products and services could be poised for a breakthrough. With a wide range of learning subscriptions and of course online courses already being paid for online, in Romania and other Eastern European markets we expect to see regular school fee payments move online in the near future too.
In Poland, the largest consumer market among Eastern European countries who have joined the European Union, online education spending saw significant growth in 2020. Merchants offering a variety of online courses and other professional educational services saw particularly rapid growth in Q2, with average e-commerce spend increasing by 124% compared to the second quarter of 2019. Although a predictable drop-off occurred during Q3, the numbers were back up in Q4, with a 42% growth rate year-over-year.