Business opportunities in Brazil
Brazil is the largest market in Latin America and offers great opportunities for global merchants
While the majority of online transactions are paid via credit card in Brazil, some important consumer behaviours should be considered to ensure success in the local market:
First, Brazilians are accustomed to using their credit card for online transactions, but nearly 80% of credit card payments are made using instalments. Instalments allow consumers to pay for a purchase over a set amount of payments, usually on a monthly basis. The interest on instalments can be paid for by the consumer or is offered as a promotion on behalf of the credit card issuer or merchant.
Second, local Brazilian credit cards like Elo and Hipercard are growing in popularity and currently account for nearly 10% of all online transactions.
Third, alternative payment methods, including the popular cash payment Boleto, account for 25% of all online transactions. Boleto Bancario is a cash payment method in Brazil that is regulated by the Brazilian Federation of Banks. The boleto (ticket) can be paid for at millions of locations including ATMs, bank branches, lottery agents, post offices, super markets and corner stores. Boleto is important to offer as it allows the unbanked, nearly 30% of the population, access to online purchases. It also gives an alternative for those consumers whom prefer to pay offline. While it might seem contrary to e-commerce, it is a thriving and necessary payment option in Brazil.
All three of these payment methods and features are important to local Brazilian consumers but are only available to merchants that use a local acquirer. Using a local payment gateway, like PayU, will give you access to these benefits from a local acquirer and many more including better authorization rates, multi-acquirer connection, local market knowledge and fraud control.
Payment Methods Available in Brazil through PayU