Brazil Online Shoppers Shaping Digital Payment Services
Brazil had an estimated population of 212,559,417 as of the middle of 2020, according to UN data. Based on Worldometer elaboration of the latest UN data, Brazil had a population of 213,526,848 as of February 21, 2021, with 87.6% living in urban areas, mainly Sao Paulo and Rio de Janeiro. The median age of the population is 33.5 years. Brazil had approximately 160.0 million active internet users as of January 2021, according to Data Reportal
The internet, banking, and smartphone penetration rate means Brazil still faces quite a high challenge to establish an e-commerce market. The average annual revenue per paying user in Brazil amounted to $379 in 2020, according to the PPRO Report. Most cross-border e-commerce purchases by Brazilian shoppers are of products from China, the United States, and Japan.
In 2020, most Brazilian shoppers prefer to pay with cards, followed by cash, bank transfers, and other payment methods. For cashless payments, the three big players are Visa, American Express, and Local schemes.
According to IMF data, Brazil had a gross domestic product of $1.84 trillion in 2019, which declined to $1.36 trillion in 2020 due to the pandemic. As the economy continues to recover, Brazil's GDP is expected to expand to about $1.43 trillion in 2021.
Internet & mobile phone trends
According to Statista, the 97% majority of internet users in the country were aged 16-24 years old as of 2020. According to Datareportal, there were 160.0 million internet users in January 2021, which had increased by about 9.6 million (+6.4%) from 2020, with an internet penetration rate of 75% in January 2021. Meanwhile, 60% of the population had smartphones in 2020.
According to the PPRO Report, 70% of Brazilians had bank accounts in 2020, but only 27% of them were credit card holders.