In recent years, global consumption habits have undergone resounding changes that, without a doubt, are here to stay. Since then, the penetration of online commerce began to intensify in Latin American countries, and the market of Peru has not been the exception to this rule.
Increasingly, Peruvian consumers have been incorporating a culture inclined towards digital consumption, and, when it comes to payments, positively significant changes have begun to take place, offering vast growth opportunities for technology companies that operate globally can successfully land in the region.
That said, throughout this article we will focus on revealing the broader picture of online commerce in Peru, including relevant data on its large-scale growth, the most popular payment methods and the importance of having a cross-border payment processor like PayRetailers, to help you increase your conversion rate and reach as many end customers as possible.
Latin America: the new power of online commerce
According to a report published by Americas Market Intelligence (AMI), it is estimated that in the next three years Latin American e-commerce will double in size and reach million new consumers, who will have access to online purchases, digital products and travel, among other benefits.
This movement does not only apply to leading markets such as Brazil, Mexico and Argentina – where approximately 30% annual growth is expected until 2025 – but it will be especially reflected in the growth of smaller countries, such as Peru, where the e-commerce growth rate is expected to reach 42% per year to that date.
Since online payments are closely related to e-commerce and vice versa, the starting point for a smooth digital payment strategy is based on identifying potential markets for your business.
Although Latin America is a territory with endless business opportunities, in order to succeed in the region, it is vitally important to thoroughly understand the particularities of each market, such as the economy, compliance regulations, the cultural context, consumer habits, as well as consumer payment preferences.
The Spanish multinational, PayRetailers, has offices and local experts in each country – and now also in Peru – which allows it to directly learn about the complexities and specific challenges presented by the continent’s markets.
Why do global companies target Peru?
Protagonist of the regional economy with the highest growth rate in LATAM, the online market in Peru is constantly evolving, becoming an excellent opportunity for large international companies that want to gain territory.
Here we present some characteristics of the Peruvian market that you must take into account to start operating in the territory successfully:
E-commerce: Retail is the main industry in the Peruvian e-commerce market, accounting for 53% of the market share.
Payment methods: Cash payment operations have a market share of 25%, since most Peruvians do not have access to banking services.
Internet penetration: Internet penetration in Peru amounts to 70% of the population, as well as the use of mobile electronic commerce.
Electronic shoppers: Peru is the fifth largest Internet market in Latin America and 43% of online users make digital purchases.
GDP growth: Peru is the region with the highest GDP growth potential in Latin America.
The importance of playing locally
With one of the largest unbanked populations on the continent, global merchants accepting local payment methods in Peru are growing exponentially, greatly increasing their conversion rate and reach to consumers in the region.
Through PayRetailers, you will be able to accept the following local payment methods in the region, providing your customers with a completely satisfactory payment experience, while increasing your conversion rate exponentially.
A clear understanding of the market will mean the difference between success and failure for traders looking to expand globally. Thus, having an experienced local partner like PayRetailers is a fundamental piece to go one step further and succeed in Latin America.
In this way, the leader in payment processing closes the access gap between global companies and Latin Americans. The merchants benefit from their knowledge and experience in identifying the power of each country, which allows them to transmit to their client’s security, trust and a unique localized payment experience typical of the market, with successful payment methods and a settlement of worldwide funds through a single integration.
Are you ready to grow your business in Peru? Contact us!