According to the latest study from Visa, Latin America and Caribbean region has reflected e-commerce has to surge by over 39%, reaching $21.8 billion. 

Such a successful e-commerce growth has been driven by a number of factors, including changes in consumer behaviors, perception and demand; increased computer and broadband penetration and improvements in online security; expansion of key industries such as travel & tourism; as well as the addition of large-scale merchants, especially in Brazil.

As the Visas’s research also found, between 2007 and 2009, e-Spending increased by 106% in the Latin American and Caribbean region. Countries driving this augmented growth include Brazil, which grew by 170%, succeeded by Mexico registering 91%; Argentina with 56%; and Chile with 49% during the same period. With regards to market share in Latin America, Brazil is the main driver with 61% of total online consumption in the region, followed by Mexico with 12%, and Chile with 5%.

While the e-commerce sector has not fully reached maturity in Latin America and the Caribbean, it experienced an increase of 49% in 2009, representing .52% of the region’s GDP. The most mature markets in the region, in relation to percentage of e-Commerce that contributes to its GDP, include Brazil with 0.84% and Chile with 0.64%.

There are several factors that have propagated increased e-Commerce growth over the past two years:

·         Computer and broadband penetration - on a technological level, increased access to the Internet and broadband penetration contributed to the growth of this channel.

·         Payment cards offer greater online security – many issuers and merchants have made online transactions more secure for their customers.

There exists a clear opportunity for growth within the e-Commerce channel in Latin America and the Caribbean region. In 2009, Visa Inc, reported a 42% growth in e-Commerce payments volume in the region, reaching $10 billion.