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 open trade policy, Colombia offers abundant opportunities for international e-merchants with Latin American ambitions.
While cross-border e-commerce is reasonably straightforward and affordable in Colombia, cross-border trading represents only 18% of the country’s total e-commerce volume. To address the entire Colombian market, you need the ability to accept the local payment methods which Colombian consumers prefer.
Preferred online payment methods in Colombia
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 Effects 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:
- Debit cards: Debit cards represent 2% of total e-commerce Leading banks to include Bancolombia, Banco de Bogota, and Banco Davivienda.
- Digital wallets, ATM payments, and other methods represent 3% of Colombia’s e-commerce volume.
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 payments have penetration of an estimated 40% of total spend.
Address the entire Colombian e-commerce market
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.
Interesting topics for articles: Best Online Payment Service in Colombia
Reference articles from blogs onlinepaymentacceptance.worldline.com