Colombia is the fourth-largest economy in Latin America and home to 49 million people, including 28M Internet users and 22M online shoppers. Its e-commerce market is still in an early phase of development, but with improving infrastructure and an open trade policy, Colombia offers rich opportunities for international e-merchants with Latin American ambitions.
While cross-border e-commerce is reasonably easy and affordable in Colombia, cross-border trading represents only 18% of the country’s total e-commerce volume. In order to address the entire Colombian market, you need the ability to accept the local payment methods which Colombian consumers prefer.
57% Credit Cards: Most credit cards in Colombia are enabled for offshore payments, but only 26% of Colombians own a credit card. In other words, if credit card payment is the only option you offer, three in four Colombians will not be able to buy from you.
International credit cards make up the bulk of e-commerce payments, but 9% of total e-commerce spend is paid with local credit cards. With Worldline, you can process domestic card payments for Visa, MasterCard, American Express, Discover and Diners Club.
21% Cash: Cash-based payments represent a fifth of all e-commerce purchases in Colombia. These invoices are issued by a local payments network such as Efecty or Via Baloto, and payable in cash at thousands of physical stores nationwide.
17% Bank Transfers: Bank transfers are more common in Colombia than in any other Latin American market, partly thanks to the Pagos Seguros en linea (PSE) service created by a national bank consortium.
5% Other Methods:
Installments are heavily used by Colombians when shopping on- and offline. Surprisingly, consumers may opt to pay in installments for purchases as low as $10. This is no exception in e-commerce, for which installments have penetration of an estimated 40% of total spend.
In order to tap the full potential of the Colombian e-commerce market, it is vital to offer local payment methods as a complement to international credit cards.
We provide cost-effective and customized local payment programs in Colombia and other emerging markets globally. Contact us today, and together we will tailor your payment strategy to meet your business requirements, growth plans and sales goals.
Read our Colombia value brief to learn more about online payments in Colombia.