Payments platform Ebanx has distributed a report covering some developing markets, predicting that the digital economy – including payments – will top $1 trillion in Latin America and Africa by 2026.
As we all know, global consumption is on the rise, and Ebanx says Latin America, Africa, and Asia consumers are leading the growth – by adding 34 million people to the group this year, almost one-third of the 109 million worldwide. While India is leading worldwide consumer growth with 31% of new consumers, the digital economy is predicted to surpass $1 trillion in LatAm and Africa as digital commerce markets are expected to hurdle this milestone in total value by 2026. India will be over $275 billion by the same time.
Brazil generated $275 billion in digital commerce this past year.
Mexico, Colombia, and Peru are experiencing growth rates of around 30% for digital commerce.
Central America & Caribbean countries are accelerating at an annual pace of around 20% by 2026.
Digital commerce is growing in developed markets like the US and Europe at 13% to 12% a year.
Paula Bellizia, President of Global Payments at EBANX, said the growth is driven by a young and growing population -meanwhile developed countries struggle to replace population.
“The digital revolution has been disrupting industries and unlocking opportunities for both local and global players, from verticals spanning from SaaS, digital ads, and B2B online trade, to gaming, streaming, social media, and e-commerce. And payments have been the backbone of this growth,” says Bellizia.
Bellizia adds that alternative payments are helping to drive the growth. Credit and debit cards represent 51% of digital commerce value in Brazil, 66% in Mexico, and 75% in Chile.
In India, cards account for 43% of the value of online transactions.
The report is available for download on the Ebanx website once you hand over your contact information.
