Photo of Brazilian Soccer fans

Business opportunities in Brazil

Brazil is the largest market in Latin America and offers great opportunities for global merchants

Brazil has the biggest e-commerce market in Latin America, and e-commerce continues to grow rapidly. With an expanding middle class and digital ecosystem, the market is projected to grow by 10-15% in 2016, numbers quite impressive given the country’s recession. The number of online shoppers is steadily rising, with over 39 million currently making online purchases and 47 million consumers are estimated to shop online by 2018.

Other interesting facts of why to consider entering the Brazilian market is Brazil is ranked tenth in global e-commerce, and fashion is the most popular category and is expected to remain the leading product category. Approximately 49% of Brazilian online shoppers have made cross-border purchases but there are many benefits to processing locally.

Map of Latam with Brazil in Blue

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

Credit Cards

Visa Logo
Mastercard Logo
American Express Logo
Diners Club Logo
Hipercard Logo
Elo credit card Brazil Logo

Cash Payments

Boleto Bancario Logo