Latin America has been tipped to lead the way in global eCommerce growth by payments specialist Worldpay.
Globally eCommerce is forecast to grow by 11% over the next five years and Latin America is expected to record 19% growth, the biggest of any region.
This will see the value of eCommerce in Latin America rise from $59bn today to $118bn in 2021, Worldpay’s Global Payments Report states.
The research also found that the three fastest-growing countries for eCommerce are Colombia, Nigeria, and Argentina.
These ‘CAN countries’ are forecast to lead the world with annual rises in eCommerce of 31%, 30% and 24% respectively.
Worldpay’s research also looked at the growth in mobile commerce, concluding that total mCommerce penetration is set to rise from 38% per cent in 2017 to 47% in 2021.
This will be driven by increased smartphone ownership and faster mobile networks.
Latin America will also be at the fore of mCommerce growth, with Colombia seeing a 64% rise, and 45% in Argentina – first and fifth position globally.
Shane Happach, chief executive of Global eCom at Worldpay, said: “No-one can predict the global economic climate over the next five years, but we can be sure that consumer appetite for online and mobile shopping will continue to see extremely strong growth.
“The rise in smartphone adoption and the continued improvement in mobile networks have important implications for merchants looking to take advantage of an increasingly well-connected middle class with greater disposable income.
“However, it’s important for retailers to understand the idiosyncrasies of each territory. No two markets are the same in terms of the population’s preferred payments methods, and each has different regulatory requirements, mobile penetration and banking practices.
“That is why it’s so important that merchants do their homework before they invest in new countries to ensure that they make the right strategic decisions.
“With the right support, however, retailers can seize a unique opportunity to take a lead in these emerging eCommerce markets.”
Worldpay’s Global Payment Report 2017 report also highlighted how the payments landscape is continuing to fragment, with options such as bank transfers, cash on delivery and pre-paid cards stealing market share from more traditional methods like credit and debit cards.
The research found that bank transfers are set to overtake both credit and debit cards as the second most popular global payment method behind e-wallets, adding an additional factor for retailers to consider when planning their eCommerce strategies.