MercoPress. South Atlantic News Agency

The future of e-commerce is Latin America

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In the last few years and especially during COVID-19 pandemic, Latin America has quietly but rapidly become one of the most promising regions for digital industries and e-commerces. The reasons why lie in the growing digital access and mobile adoption, but also in the interest many companies have shown in investing in this area.

 

The digital shift accelerated by pandemic era

The COVID-19 pandemic has acted as an accelerator for digital companies and services in the continent. Lockdowns, remote work mandates, and reduced access to physical stores forced both consumers and businesses to adapt. They reinforced digital infrastructures, adopted the habit of online shopping and generally elevated the usage of internet and mobile devices. According to Citi’s Global Insights, this acceleration triggered widespread innovation and adaptability. From mobile banking to e-learning, the digital shift redefined how the region functions across sectors.

The entertainment platforms in connection with e-commerce

As connectivity improves and new services appear on the horizon, Latin Americans are also turning to online entertainment in increasing numbers. Movies, tv, music, even education services have seen an increase in recent years. Among these sectors, one that stands out in terms of global momentum is online gaming. Over 335 million active players and a regional growth rate of 3.8% make Latin America rank as the second-fastest-growing gaming market in the world. The revenue in 2023 alone stood at $8.7 billion USD. The world of iGaming is also growing steadily, driven by the most established operators, such as those presented, for example, on this page of oddschecker.com, one of the industry's most popular comparators: Colombia, for example, grossed more than $200 million in fees in 2022. This reflects not only rising interest but also government interest in regulating and profiting from digital economies.

The numbers of Latin America’s e-commerce market

In 2023, 82% of adults in Latin America made at least one online purchase and total e-commerce volume for the year reached $509 billion USD. These numbers are likely to grow in the years to come, and companies are quickly understanding the importance of offering good digital services to customers. The surge is being led by some countries more than others. Brazil, with its dynamic fintech sector and widespread smartphone penetration, is a key area. Logistical and digital infrastructures also improved in Mexico and Chile, while the economically more volatile Argentina is a little behind, but still making progress. Colombia and Peru are maybe the most interesting examples due to their young, inclusive and tech-savvy populations. What all these countries share is not just population size or market potential—they share a readiness to adopt and scale digital services at speed.

Online payments and accessibility

Online shopping would be impossible without a robust payment infrastructure. And given the fragility of traditional banking in Latin American countries, fintech startups have stepped in to fill the gaps. Digital wallets and bank accounts, immediate wire transfers and secure online payments are more and more used by the population. This is seen as a good, healthy signal from the market: the democratization of financial services means more people can buy products, subscribe to digital and physical services, access education, culture and entertainment. And, of course, spend their money with companies who had the boldness and readiness to embrace the shift.

Conclusions: the future is here

What we are witnessing in Latin America is an acceleration of what has already happened in other countries. While many eyes are focused on South Asian markets, this continent is a great place to start or expand a business too. Not only the numbers are clear: both Governments and citizens have already expressed their willingness to use more online platforms. This is the time to invest in Latin America.