The main payment methods in Brazil that will boost your ecommerce conversion rates
Brazilian consumers are very keen to do online shopping: with more than 23 million cross-border digital buyers in the country, Brazil is the largest ecommerce market in Latin America.
However, many international merchants selling to the country face low conversion rates. If this is your case, you might be asking yourself: “If Brazil is such an outstanding opportunity, why are my conversion rates so low?”
The most likely reason is you aren’t offering enough payment options for your customers in Brazil. It’s true that credit cards are the most used payment method in the country; however, most cards issued in Brazil are limited to domestic transactions only, meaning many digital buyers are unable to purchase from cross-border online stores.
And it doesn’t end there. Boleto bancário, installment payments and debit cards are also commonly used by digital buyers. In this article, we explain the particularities of each payment method and why you should enable each one of them on your online store. Check it out!
Top three most used payment methods in Brazil
Even those who do have access to international credit cards often choose alternative payment methods to either avoid compromising their credit card limits or simply to organize their budget. However, these options are also widespread in Brazil due to limited access to credit and high cash reliance.
The boleto bancário is one of the most popular payment methods in Brazil, accounting for nearly 20% of all online purchases, according to a Webshoppers report. The payment process is similar to that of wire transfer of cash payment methods: customers are provided with a boleto bancário payment slip and can either print the form and pay it physically at an authorized processor or bank or pay it electronically through internet and mobile banking. A payment due date is usually set to expire within a few days, and, once the customer concludes the transaction, payment confirmation may take between 1-4 business days.
This payment option is not only an alternative for those who don’t have or don’t want to use their credit cards, but an inclusive payment method for the 45 million unbanked adults in Brazil, who are also digitally and economically active.
Installment payments are a popular practice in Brazil: using their credit cards, customers may divide the total amount of their purchase into monthly payments. This allows them to make larger purchases fit into their budgets.
According to a Webshoppers report, 47.4% of online purchases are made in installment payments. Offering this solution to your customers in Brazil is definitely a must.
Did you know most cards issued in Brazil only have a debit function? This is a quick and easy payment option for those who do not have or do not want to use a credit card. It is also a faster alternative for the traditional boleto bancário, as the payment confirmation is immediate, accelerating the purchase’s delivery due date.
How do I offer Brazil’s most used payment methods in my online store?
At this point, you are now well aware of the importance of offering alternative payment methods when selling to Brazil. But how do you enable these options in your online store?
When selling cross-border into Brazil, you will need a local partner to process payments. Not only will this allow you to offer the main payment methods in the country, you will also be catered for with the proper support for both you and your customers in Brazil. In addition, working with a local provider will also enable your customers to pay in their local currency – the Brazilian Real.
Luckily, ecommerce platforms such as PrestaShop is integrated with PagBrasil, a leading fintech company processing payments to Brazil. Work with a comprehensive set of payment methods – including the exclusive Boleto Flash®, the only boleto in the market that confirms payment in less than one hour, and PEC Flash®, a solution that enables online customers to pay in cash for their online purchases – and essential features that enhance the shopping experience. And enjoy your increasing conversion rates in LATAM’s largest ecommerce market!
Want more tips on how to sell to Brazil? Then check out these four tips to overcoming the main barriers in the country.