New payment methods will boost e-commerce in countries such as Brazil, Colombia and the United Arab Emirates

Report of Canadian fintech Nubei reveals that e-commerce in the eight high growth markets mapped by the company 24% by 2027.In Brazil, South Africa, Mexico, Hong Kong, Chile, India, Colombia and United Arab Emirates, this growth may be even higher in Brazil, reaching 28%. This scenario is driven, among other factors, by the consolidation of new online payment methods, with solutions adapted to the particularities of each country. These are some of the highlights of the “Global expansion guide for high growth markets”, a report by Nuvei that, in its first edition, focuses on the particularities of two markets: Colombia and the United Arab Emirates.

While Brazil tends to maintain the lead in e-commerce billing in Latin America until 2027, largely under the impulse of Pix's success (today used by at least 90% of adults), in Colombia revenue is expected to double in this period, reaching US$ 80 billion. In the case of the United Arab Emirates, the estimate is growth of 58.2%, with a turnover of US$ 16.3 billion in 2027.

Although they are very different from each other, these markets (alongside South Africa, Mexico, Hong Kong, Chile and India, future issues of the report 'ARE common to the strong expansion of digital infrastructure, the increase of the middle class population and the popularization of internet access and smartphones. “O Brazil and the other countries of the group are at the forefront of these trends, leading innovations such as real-time payments and technologies linked to digital portfolios”, says Daniel Moretto, senior vice president of Cloudei Latin America. The edition focusing on Brazil will be launched in 2025.

By observing in detail each high-growth market for e-commerce, the report proposes to provide a map that helps companies in the sector to position themselves to take advantage of business opportunities. This is important because, to succeed in e-commerce, it is not enough to offer attractive products and services: it is necessary to operate with payment methods appropriate to the reality of each country and aligned with the preferences of local consumers.

A good example is Pix: given the resounding success of this tool in Brazil, an e-commerce company that does not accept this means of payment may be left behind. The same happens in other markets with their respective means of payment. Companies need to know these tools to offer them assertively, as well as the local partner able to help in this journey. In this way, the report can be useful both for companies that want to sell online in Brazil and for national businesses that aspire to an international expansion.

Colombia

One of the peculiarities of Colombia from the perspective of growth of e-commerce is its young and technology-hungry population. Colombians prefer to make payments by mobile, and bank transfers and digital wallets have gained more and more space. Wallets such as Nequi and DaviPlata, which until 2017 were practically unknown, today already account for 5% of e-commerce transactions. The study also found that the share of cash payments fell significantly in the country, from 17% before the pandemic to 4% in 2023, a trend that should continue at least until 207.

Among the recommendations for companies that want to take advantage of opportunities in Colombia, Nuvei suggests prioritizing the most mobile-friendly platforms and investing in local payment methods. Another tip is to look closely at the most promising e-commerce segments in the country, such as electronics, fashion and games.

United Arab Emirates

The Middle Eastern country, where cities like Dubai and Abu Dhabi are located, stands out for a high-income population and mostly made up of foreigners (88%). These economic and demographic peculiarities make international credit cards prevalent: this means of payment was used in 60% of e-commerce transactions in the United Arab Emirates in 2023.

It has gained relevance in the UAE the BNPL payment modality (buy now, pay later), present in 8% of online sales in 2023 IS the highest percentage among countries with high growth markets. Also successful digital wallets and embedded financial services and tend to advance even more in e-commerce the travel and retail sectors.