The digital markets of emerging economies such as Brazil, India, Kenya, and Nigeria are contributing to the global growth of the digital market through online payments, transfers, and other alternative payment methods, including in B2B transactions. This discovery comes from the latest Beyond Borders report by EBANX.
According to EBANX, the digital markets in Latin America and Africa will surpass a combined value of $1 trillion by 2026. Meanwhile, India is projected to reach over $275 billion. It is primarily countries like India, Africa, and Latin America that are driving the global increase in the number of consumers, and along with that, e-commerce markets are also flourishing.
Statistics show that online commerce is growing faster in developing countries than in more stable markets such as the United States or Europe. Over half of the population in these countries already utilizes digital payments, demonstrating the important role they play in economic development and access to products.
“The main factor behind this growth is demographics. Developing economies have a young, growing population, which sets them apart from more developed regions. The combination of demographics and economic growth also promotes the process of digitalization,” says Paula Bellizia, Global Payments President at EBANX.
Latin America, as a powerhouse in the e-commerce market, is expected to double its value by 2026, providing significant prospects for investors. Countries like Mexico, Colombia, and Peru also experience annual growth rates of around 30%. It is also worth noting the potential of Central American and Caribbean countries, which are expected to achieve a 20% growth rate during the same period.
India, the second-largest e-commerce market worldwide after China, holds great potential. With a population of over 350 million, India already dominates online commerce with a value of over $184 billion. However, it is crucial to mention that online sales penetration in India is only 33%, indicating significant untapped potential in this market.
Africa is also becoming an increasingly important region for the growth of trade and digital payments. After the adoption of digital payments, which increased their share from 23% to 46%, the continent is now entering the next stage of growth – e-commerce. This growth is supported by the growing number of mobile phone users and local alternative payment methods.
Nevertheless, card payments still play a significant role in the digital economy. Credit and debit cards account for 51% of the value of digital trade in Brazil, 66% in Mexico, and 75% in Chile. Even in African countries like Morocco and Nigeria, cards represent 42% and 36% of the value of online transactions, respectively. It is important for payment strategies in developing markets to consider both cards and alternative payment methods to enable customers to choose the optimal payment option.
The Beyond Borders report by EBANX also highlights another area of growth in the payment industry – B2B payments. More and more companies worldwide are making online purchases from other businesses. Developing markets such as Brazil, Colombia, and Kenya have higher proportions of such transactions compared to the global average. The value of B2B payments is predicted to increase by 2027, with Latin America, Africa, and the Asia-Pacific region accounting for 40% of that value.
The insights from EBANX’s Beyond Borders report demonstrate the enormous growth potential in e-commerce and payments in developing markets. Therefore, it is worth paying attention to these markets and considering investment strategies appropriate for these regions.
FAQ section based on the main topics and information presented in the article:
1. Which emerging markets contribute to the global growth of the digital market?
– Emerging markets such as Brazil, India, Kenya, and Nigeria contribute to the global growth of the digital market through online payments and other alternative payment methods.
2. What will be the value of the digital markets in Latin America and Africa by 2026?
– According to EBANX, the digital markets in Latin America and Africa are projected to surpass a combined value of $1 trillion by 2026.
3. What is the projected value of India’s digital market?
– India is projected to reach over $275 billion.
4. Why is online commerce growing faster in developing countries?
– Statistics show that online commerce is growing faster in developing countries due to their young and expanding populations, as well as high utilization of digital payments.
5. Which markets have significant growth potential in the e-commerce industry?
– Markets such as India, Latin America, Africa, and Central America have significant growth potential in the e-commerce industry.
6. What payment methods are popular in developing markets?
– Payment cards, such as credit and debit cards, remain popular in developing markets. However, it is important to consider alternative payment methods as well to offer customers optimal choices.
7. What are the prospects for B2B payments in developing markets?
– More companies in developing markets are conducting online purchases from other businesses. The value of B2B payments is expected to grow, with Latin America, Africa, and the Asia-Pacific region accounting for 40% of that value.
Definitions:
– Online commerce: the activity of buying and selling products and services over the internet.
– Digital payments: payment methods carried out using electronic means, such as payment cards, mobile wallets, electronic transfers, etc.
– Emerging market: the economic markets of developing countries characterized by rapid economic growth and high growth potential.
– B2B transactions: business transactions between companies, where one company buys or sells products or services from another.
Suggested related links:
– EBANX – the main website of EBANX, the company behind the Beyond Borders report.
– EBANX América Latina – EBANX’s main page for the Latin American market.
– Career at EBANX – information about career opportunities at EBANX.
– EBANX Exchange – a section on the EBANX website featuring articles and reports related to emerging markets.
The source of the article is from the blog dk1250.com