PART 2: BRAZIL & SOUTH AFRICA
Executive summary
High-growth markets are driving global digital transformation, and Brazil and South Africa stand out as key opportunities for expansion. With massive consumer bases, robust eCommerce growth, and innovative payment ecosystems, these markets promise significant returns for merchants. This guide explores the growth drivers, payment methods, and actionable strategies for success in these regions, highlighting how Nuvei sets merchants up for success.
This second edition of our Global expansion guide to high-growth markets focuses on Brazil and South Africa, exploring the vast eCommerce potential in these regions. Our first edition put a spotlight on Colombia and UAE, while subsequent reports will focus on Mexico, Hong Kong, Chile, and India. Both Brazil and South Africa exhibit unique growth drivers, from Brazil’s real-time payment revolution via PIX to South Africa’s burgeoning mobile-first eCommerce landscape.
This guide provides actionable insights, market data, and strategies, underpinned by Nuvei’s solutions, to help businesses succeed in these high-potential markets.
While the financial opportunities are abundant, to successfully expand an online business into these highgrowth areas, merchants should consider key challenges, including:
• Complying with nuanced eCommerce and payment regulations whilst minimizing transaction declines
• Offering consumers’ preferred payment methods
• Localizing currency, pricing, and language options
• Keeping up to date with wider demographic and technological trends
Without a local entity, online merchants run the risk of high foreign exchange fees and poor authorization rates in high-growth markets.
Partnering with a Merchant of Record, meanwhile, allows international businesses to trade like a local one, without setting up a foreign presence. Nuvei is an industry leader in helping businesses successfully navigate global expansion pain points.
This expansion guide to high-growth markets outlines the key opportunities and how to address local obstacles, ultimately helping merchants build and execute their globalization strategies.
With real payments experts across the globe, Nuvei offers ambitious expanding businesses on-the-ground consultancy, a vast acquiring network, over 700 local and global payment methods, Merchant of Record services, and faster settlement in complex regions.
Introduction
The rising importance of high-growth markets
A combination of factors has propelled these high-potential markets to the frontline of the global digital revolution, starting with their relatively young and tech-savvy populations. High-growth markets like Brazil and South Africa specifically are key drivers of global eCommerce expansion.
Emerging markets are becoming the cornerstone of global economic growth, contributing more than 60% of the world’s GDP growth in recent years. Brazil and South Africa exemplify this trend, with their eCommerce sectors experiencing double-digit annual growth.
High-growth markets are home to younger, digitally savvy populations compared to developed countries. The median age of the high-growth populations mentioned in our reports is 33.1 years, compared to 44.3 years in the G7. In Hong Kong, the median age is 47.2.1
In Brazil and South Africa, the median ages of 35.1 and 30.4, respectively, underscore the dominance of techembracing age groups. By 2027, nine out of ten new consumers entering the global economy will come from emerging markets.2
Technological advancements have transformed these markets into digital leaders. Brazil’s PIX system, used by 90% of the adult population, and South Africa’s PayShap realtime payment system illustrate how innovation is reshaping financial access and eCommerce.
A rising middle class with increasing disposable income is driving demand for goods and services, particularly in eCommerce. Nuvei helps businesses expand into these high-growth markets by offering bespoke payment consultancy and tailored payment solutions.
Emerging markets are not just catching up with digital trends but setting them.
Despite global economic uncertainties, Brazil and South Africa exhibit resilient growth patterns. Brazil’s GDP surpassed $2 trillion in 20233, while South Africa remains a leading economy in Sub-Saharan Africa.
These include support for real-time payment systems and localized digital wallets, enabling businesses to adapt to regional payment preferences efficiently and seamlessly.
Key drivers of eCommerce growth in highgrowth markets
As mentioned, high-growth markets are powered by a convergence of demographic, technological, and economic factors, shaping these regions into eCommerce powerhouses. Below are the key drivers fueling the rapid growth of eCommerce in these markets, and why they matter for businesses looking to expand.
Government support for digital ecosystems
Governments in high-growth markets are investing heavily in digital infrastructure. Brazil’s Central Bank actively promotes financial inclusion through initiatives like PIX, while South Africa’s policies aim to extend broadband to underserved regions.
Rising middle class driving disposable income growth
High-growth markets are home to younger, digitally savvy populations compared to developed countries. At the same time, increasing disposable incomes in these markets are expanding the consumer base for eCommerce. In South Africa, for example, middle-class growth is fueling a rise in online retail spending, while Brazil’s economic recovery post-pandemic has spurred similar trends.
This is evident in the rising rates of eCommerce in both Brazil and South Africa; Brazil is projected to reach US$ 586 billion by 2027, from US$ 85.5 billion in 20185
South Africa is the smallest eCommerce market among the eight countries analyzed, meanwhile, but it is expected to grow at a CAGR of 18% between 2023 and 2027, reaching US$15.8 billion by 2027.6
Widespread adoption of innovative payment systems
Payment systems like Brazil's PIX and South Africa’s PayShap are revolutionizing how consumers transact online. PIX, for instance, has achieved an adoption rate of 90% among Brazil’s adult population since 2020.7
Cultural openness to digital innovation
Consumers in Brazil and South Africa are not just adapting to digital trends but are actively shaping them. Brazil’s adoption of super-apps and South Africa’s rapid acceptance of mobilefirst banking highlight the potential for innovation.
For example, Brazil's super-app market is projected to reflect a CAGR of 26.2% from 2024 to 2030.8 Companies that innovate in customer experience, personalization, and omnichannel strategies can differentiate themselves and capture market share in these highly competitive regions.
Payment trends in high-growth markets
As eCommerce in high-growth markets evolves, several payment trends have emerged:
• Mobile-first economies transforming eCommerce: In South Africa, 70% of eCommerce transactions occur via mobile devices. Similarly, Brazil has seen exponential growth in mobile commerce, driven by increased smartphone penetration and affordable data plans.
• Rise of the gig-economy: A labor market consisting of freelance professionals who take on specific projects rather than holding traditional full-time positions. This industry has grown in markets characterized by unstable labor conditions, where people are constantly looking for flexible work opportunities. According to World Bank data, the gig economy accounts for up to 12% of the global labor market—much higher than previously estimated.
• Real-time payments on the rise: Systems like PIX in Brazil, PSE in Colombia, and UPI in India have revolutionized nearinstant payments, with PIX used by 90% of the adult population in Brazil8 and UPI processing 100 billion transactions in India in 20239
• Digital wallets surge: Digital wallets are gaining traction across emerging markets, accounting for 50% of global eCommerce spend.10 In Colombia, Nequi and Daviplata are among the most popular wallets.
• Enduring role of cards: Despite the rise of alternative payment methods, credit and debit cards remain relevant in high-growth markets where 56% of eCommerce transactions are card-based11
• International transaction opportunities expanding: International eCommerce is on the rise, with South Africa’s segment expected to grow at a CAGR of 24% through 2027 and Brazil seeing a projected increase to $51.2 billion during the same period.
Cross-border eCommerce volume (US$ bn) 12
Cross-border eCommerce share
POPULATION OF 216 MILLION PEOPLE ESTIMATED US$276.9 BILLION ECOMMERCE VOLUME IN 2023
CROSS-BORDER ECOMMERCE ACCOUNTED FOR 7% OF ONLINE SALES IN 2023
81% OF THE POPULATION HAS INTERNET ACCESS
Market focus: Brazil Brazil and South Africa
Brazil is Latin America’s largest eCommerce market, the most significant economy in the region, and a global leader in digital innovation, making it an essential focus for businesses looking to expand into high-growth markets.
Several key trends are reshaping the eCommerce landscape in Brazil, creating significant opportunities for merchants.
The eCommerce sector is driven primarily by the travel, retail and sports betting verticals. Meanwhile, the introduction of PIX by Brazil’s Central Bank has revolutionized the payment ecosystem. Used by 90% of adults in Brazil, PIX accounted for 33% of eCommerce transactions in 2023 and is projected to surpass 50% by 2027.14
Its efficiency, cost-effectiveness, and ease of use have made it a preferred payment method, particularly for unbanked populations. This is comparable to approximately 83.5% of Dutch consumers using iDEAL to pay for online goods and services in the Netherlands15 and 50% of Spain’s population using Bizum.16
With 81% internet penetration and widespread smartphone adoption, mobile commerce dominates Brazil’s eCommerce landscape.17 Mobile devices are often the primary platform for shopping, banking, and payments, reflecting the population’s preference for seamless, on-the-go digital experiences.18
Brazil’s youthful demographic drives demand for fast, personalized, and mobile-friendly shopping experiences. Social media plays a significant role in influencing purchases, with platforms like Instagram and WhatsApp heavily integrated into shopping journeys.
Brazilian consumers prioritize affordability and value for money, leading to increased interest in installment-based payment options and cross-border shopping. Despite high import tariffs, cross-border eCommerce is expected to grow at a 28% CAGR through 2027.19
This is driven largely by competitive pricing from international merchants, as well as demand for unique and higher-quality international products.
Brazil’s financial inclusion efforts are bolstered by PIX and widespread digital wallet adoption, enabling broader access to online shopping. This has opened new market segments, including rural and underserved areas.
Merchants entering Brazil must adapt to these trends, focusing on integrating PIX, optimizing for mobile platforms, and offering locally tailored solutions to meet consumer expectations.
BRAZIL: ECOMMERCE BY DEVICE
Payment methods in Brazil
Brazil’s payment landscape is both dynamic and diverse, shaped by innovative solutions like real-time payments and evolving consumer preferences. Merchants entering this market must understand the dominant and emerging payment methods to optimize their strategies and maximize conversion rates.
eCommerce by payment method20
PIX:
Since its launch in 2020, PIX, the instant payment system developed by Brazil’s Central Bank, has transformed how Brazilians transact. It accounted for 33% of eCommerce payments in 2023 and is projected to surpass 50% by 2027.21 PIX’s appeal lies in its speed, convenience, and zero fees for consumers, making it particularly popular among unbanked and underbanked populations. It also allows real-time peer-to-peer and business transactions. Functionalities like recurring payments and payment installments with PIX Automático are under development, launching later in 2025. The Central Bank of Brazil is also exploring PIX integrations with international payment systems to facilitate cross-border transactions.
Domestic credit cards remain the most widely used payment method, accounting for 39% of eCommerce transactions in 2023.22 These cards often support installment payments, a feature deeply ingrained in Brazilian consumer culture, enabling shoppers to spread costs over several months without incurring interest.
Digital wallets such as MercadoPago and PicPay are gaining traction, particularly among younger consumers and urban populations. These solutions accounted for 8% of eCommerce payments in 2023 but are expected to decline as Brazilians increasingly adopt PIX as the most convenient payment method.23
• Boleto Bancário, the traditional payment slip, remains a notable method, especially for consumers without bank accounts. However, its share in eCommerce is decreasing, projected to fall from 9% in 2023 to 5% by 2027, as PIX adoption continues to rise.24
• BNPL: While installment payments are widespread, BNPL solutions have seen slower uptake in Brazil, partly due to the ingrained preference for traditional card-based installments. Nevertheless, BNPL represents a small but emerging opportunity.
• Merchants entering Brazil should prioritize integrating PIX to cater to its broad adoption and ensure compatibility with domestic credit cards to support installment options. Offering multiple payment methods, including digital wallets and boletos, can enhance accessibility and appeal to diverse consumer segments. Adapting to these preferences ensures higher conversion rates and stronger consumer trust in this competitive market.
• Nuvei provides a comprehensive suite of solutions tailored to help merchants thrive in Brazil’s dynamic eCommerce market. With its robust integration of local payment methods, including PIX, Nuvei ensures merchants can meet the preferences of Brazil’s digitally savvy consumers. Its support for real-time payouts empowers businesses to disburse funds instantly to consumers and partners, streamlining operations and enhancing user satisfaction in growing verticals like the gig economy. This capability is particularly critical in Brazil, where fast and secure payment processing is a key consumer expectation.
• Nuvei simplifies compliance with Brazil’s complex tax and regulatory environment through localized expertise and scalable solutions. By leveraging Nuvei’s advanced fraud prevention tools, merchants can protect transactions and build trust in a market where online security is paramount. With these advantages, Nuvei positions merchants to navigate Brazil’s unique challenges and unlock its immense growth potential effectively.
How to succeed in Brazil:
1. Embrace localized payment methods
In Brazil, payment preferences are heavily influenced by domestic innovations like PIX, which accounted for 33% of eCommerce transactions in 2023 and is projected to dominate by 2027.25 To succeed, merchants should prioritize integrating PIX into their payment systems. Offering installment payment options through domestic credit cards is also essential, as Brazilian consumers rely on this method to manage larger purchases.
2.
Optimize for mobile commerce
With 81% internet penetration and a mobile-first economy, many Brazilians use smartphones as their primary device for online shopping.26 Merchants should ensure their websites and apps are fully mobile-optimized, offering seamless navigation and oneclick payment options. Investing in a robust mobile experience will attract Brazil’s tech-savvy younger demographic.
3. Build trust through security and transparency
Concerns about fraud and online security remain significant in Brazil. Merchants can build trust by implementing advanced fraud detection systems, displaying secure payment certifications, and offering transparent refund and return policies. Highlighting these measures on the checkout page and marketing communications will reassure consumers and encourage purchases.
4.
Consider using a Merchant of Record to navigate regulatory and logistical challenges
Brazil’s high import tariffs and complex tax regulations can be a hurdle for international merchants. To overcome these barriers, businesses should consider partnering with local entities or using Merchant of Record (MoR) services to simplify compliance. Additionally, collaborating with regional delivery providers ensures reliable logistics, even in rural areas.
5.
Tailor offerings to local consumer behavior
Brazilian consumers value affordability, flexibility, and regional relevance. Merchants should offer competitive pricing, discounts, and promotions that resonate with local shoppers. Using localized marketing campaigns and adapting product offerings to reflect regional tastes—such as showcasing local holidays or events—can strengthen brand loyalty and drive conversions in this diverse market. These strategies empower merchants to position themselves for success in Brazil’s dynamic and rapidly growing eCommerce landscape.
“Although Brazilian consumers are open to international brands, foreign merchants also must compete with strong and extremely popular local groups in many areas. Brazil is a very large market, and many local companies choose to focus on domestic expansion rather than going abroad. iFood, for instance, holds around 90% of the market for food delivery apps in the country.
Brazilian consumers are becoming increasingly demanding when it comes to eCommerce services. For instance, improvements in logistics have significantly reduced delivery times but consumer expectations have changed as well. It used to take 45 days for some orders to arrive in Brazil from China. Now, if it takes over 10 days, customers are complaining.”
Daniel Moretto | Commercial Senior Vice President | LATAM | Nuvei
NUVEI GLOBAL EXPANSION
POPULATION OF 61.4 MILLION PEOPLE
ECOMMERCE IN SOUTH AFRICA REACHED US$8 BILLION IN 2023
ECOMMERCE PENETRATION INCREASED TO 73% IN 2024, UP FROM 66% IN 2023
WITH
US$1.2 BILLION
US$2.9 BILLION IN
South Africa
South Africa’s eCommerce landscape is undergoing a period of robust growth, fueled by a combination of technological advancements, increasing digital adoption, and expanding financial inclusion. As one of the leading economies in Sub-Saharan Africa, South Africa presents significant opportunities for merchants looking to enter a dynamic and rapidly evolving market.
South Africa’s eCommerce market is projected to grow at a compound annual growth rate (CAGR) of CAGR of 18% between 2023 and 2027, reaching US$15.8 billion by 2027.27
This growth is driven by a rising middle class, greater access to the internet, and increasing trust in online shopping. Post-pandemic consumer behaviors have solidified the preference for eCommerce, with more consumers turning to online platforms for convenience and product variety. Mobile commerce dominates South Africa’s eCommerce sector, with 70% of online purchases made through mobile devices.30 High smartphone penetration and relatively affordable mobile data packages make mobile the primary gateway to digital commerce for many South Africans, particularly among younger demographics.
eCommerce by vertical
eCommerce by origin (US$ bn)
Cross-border eCommerce is expected to grow at a CAGR of 24% through 2027, reaching $2.9 billion in value.31 South African consumers are increasingly turning to international marketplaces for access to a broader range of products and competitive pricing.
The demand for cross-border shopping is particularly high for items like fashion, electronics, and luxury goods. Government initiatives and private sector innovations, such as the introduction of real-time payment systems are improving financial inclusion.
These efforts have expanded the addressable market for eCommerce by enabling more consumers to participate in the digital economy. Digital wallets like SnapScan and VodaPay are becoming integral to South Africa’s payment ecosystem. They offer convenience and security, particularly for younger, urban consumers, and are contributing to the decline of cash-based transactions in online shopping.
South African consumers spend around 10% of their income online32, prioritizing value, convenience, and trust in their online shopping experiences. Price sensitivity is a major factor, with many shoppers seeking discounts and promotional offers. Additionally, the ability to access installment payment options or Buy Now, Pay Later (BNPL) services is gaining importance for budget-conscious consumers.
Specific verticals like fashion, electronics, and online grocery shopping are experiencing rapid growth. The food delivery and ridehailing sectors are also expanding, reflecting a broader digital transformation in consumer services. Merchants entering South Africa should prioritize mobile-first strategies, ensuring their platforms are fully optimized for smartphones. Integrating local payment solutions like PayShap and digital wallets can improve accessibility and trust. Additionally, offering competitive pricing, installment payment options, and localized marketing strategies can help capture the growing consumer base. Cross-border merchants should also focus on transparent shipping and duty fees to build trust with South African consumers. By aligning with these trends, businesses can establish a strong foothold in one of Africa’s most promising eCommerce markets.
SOUTH AFRICA: ECOMMERCE BY DEVICE
Payment methods in South Africa
South Africa's payment landscape reflects a mix of traditional methods and emerging innovations, with consumer preferences evolving rapidly due to technological advancements and financial inclusion efforts. Understanding the diversity of payment options is crucial for merchants aiming to succeed in this high-growth market.
Credit and debit cards:
The dominant methods
Credit and debit cards remain the most widely used payment methods for eCommerce in South Africa, accounting for a significant share of transactions. This preference reflects the mature banking infrastructure in urban areas and the high penetration of Visa and Mastercard. Many consumers use cards for online purchases, particularly for large-ticket items and subscriptions.
Bank transfer: instant EFTs
An EFT is the second most popular online payment method in South Africa after credit and debit cards, defined here as bank transfer. It allows for the immediate transfer of funds between bank accounts, making it a convenient choice for various financial transactions.
Real-time payments:
The rise of PayShap
Introduced in 2023, PayShap is transforming real-time payments in South Africa. It enables instant, 24/7 peer-to-peer and business transactions, targeting both banked and previously underserved populations. Its adoption is expected to accelerate, as it provides a costeffective alternative to traditional card payments and expands financial inclusion.
Digital wallets:
A growing trend
Digital wallets like SnapScan, Zapper, and Vodacom’s VodaPay are gaining popularity, particularly among younger, mobile-first consumers. These wallets facilitate quick, secure payments and are increasingly used for in-app purchases, utilities, and small transactions.
Their adoption aligns with South Africa’s growing smartphone penetration and preference for convenience.
Cash-based options:
Gradual decline
Cash-on-delivery remains relevant in certain segments, especially in rural and underserved areas where digital access is limited. However, its share in eCommerce transactions is declining as digital payment methods like PayShap and wallets become more accessible.
Buy now, pay later (BNPL):
An emerging opportunity BNPL services, such as Payflex, are beginning to capture attention in South Africa, particularly among younger consumers looking for flexible payment options. Although still in its infancy compared to other regions, BNPL has significant growth potential as financial literacy and trust in digital solutions improve.
Nuvei delivers tailored solutions to help merchants navigate South Africa’s diverse payment landscape, ensuring they cater to all consumer preferences. With seamless integration of credit and debit card payments, including Visa and Mastercard, Nuvei supports the most widely used method for eCommerce in urban areas, particularly for highvalue purchases.
Popular digital wallets like SnapScan, Zapper, and VodaPay align perfectly with the preferences of South Africa’s mobile-first consumers, enhancing accessibility and security for in-app and smaller transactions. Additionally, Nuvei offers merchants the flexibility to cater to rural areas with hybrid payment options, while supporting emerging trends like Buy Now, Pay Later (BNPL) services.
How to succeed in South Africa:
1. Focus on building consumer confidence
Since eCommerce is still relatively new, online fraud remains a significant concern. Providing a fast and secure payment experience, therefore, is essential for building trust. Merchants also need to work to build reliability in other aspects of the online purchasing experience, such as product quality, secure deliveries, and the protection of personal data.
2. Prioritize mobile-first strategies
South Africa is a mobilefirst economy, with 70% of eCommerce transactions made via smartphones.34 Merchants should optimize their platforms for mobile users, ensuring quick load times, easy navigation, and seamless checkout experiences. Offering app-based shopping options with integrated digital wallets like SnapScan and VodaPay can further enhance user engagement and drive conversions.
3. Integrate local payment methods
To succeed in South Africa, merchants must cater to diverse payment preferences. Real-time payment systems are gaining traction, especially among unbanked and underbanked populations. Supporting digital wallets alongside traditional credit and debit cards ensures a broader reach and higher consumer trust.
4. Address price sensitivity with value-driven strategies
South African consumers are priceconscious, making competitive pricing and transparent shipping costs critical to success. Merchants should highlight discounts, promotional offers, and installment payment options to attract budgetconscious shoppers. Offering affordable cross-border shipping with clear duty fees can also reduce cart abandonment.
5. Overcome infrastructure gaps
Limited digital and logistics infrastructure in rural areas presents challenges for eCommerce. Merchants can partner with local delivery networks to improve reliability and ensure access to remote consumers. Providing hybrid payment options, such as cash-on-delivery combined with digital incentives, can help overcome connectivity barriers.
Localize the shopping experience
South Africa’s diverse cultural and linguistic landscape requires a localized approach. Merchants should offer multi-language support, including English, Zulu, and Afrikaans, to connect with various consumer segments. Tailoring promotions to align with local holidays, traditions, or events can further enhance brand relevance and drive customer loyalty.
Tap into social commerce
In South Africa, internet users spend an average of 3 hours and 41 minutes per day on social platforms, the second highest in the world after Kenya. By comparison, across the EU and UK, the average time spent on social media per day is only 1 hour and 48 minutes.35
Merchants should ensure their brand has a robust and up-to-date social commerce strategy, as 41% of surveyed local consumers say they directly buy products through social media, while 83% said they use social media channels to discover new brands.36
By adopting these strategies, merchants can effectively navigate South Africa’s unique challenges and capture the immense potential of this rapidly growing eCommerce market. Nuvei’s tailored solutions incorporate PayShap and digital wallet systems, ensuring comprehensive support for merchant payment strategies.
NUVEI GLOBAL EXPANSION
“The level of competition in South Africa is still relatively low in many eCommerce segments. This presents a good opportunity for international merchants looking to set a foothold in this market. South African customers are open to trying new products and brands, but new merchants must attract them with effective digital marketing strategies and appealing prices or promotions.
That is what Amazon did to gain market share from Takealot. At the same time, middle- and upperclass consumers tend to be brandconscious and are attracted to strong brands—giving renowned brands a greater opportunity to quickly gain acceptance in this market.”
Pilisa Matyholo | National Manager South Africa | Spar
Overcoming barriers:
Navigating regulatory and consumer challenges
Expanding into high-growth markets like Brazil and South Africa comes with significant opportunities, but merchants must also address a range of regulatory and consumer challenges. Understanding these barriers and devising strategies to overcome them is crucial for success.
1. Navigating regulatory complexity
Regulatory hurdles in Brazil include high import tariffs, complex tax structures, and restrictions on cross-border transactions. Import duties range from 20% to 60%, and international purchases are subject to additional taxes, such as the IOF (tax on financial operations). Recent regulatory changes, such as the elimination of tax exemptions for purchases under $5037, further increase costs for consumers and merchants.
While South Africa’s regulatory framework is more businessfriendly, challenges include fragmented infrastructure in rural areas, high data costs, and evolving consumer protection laws. Additionally, stringent import regulations can delay cross-border shipping.
Partnering with local entities or leveraging Merchant of Record (MoR) solution providers, like Nuvei, can simplify compliance, streamline local taxation requirements, and improve transaction authorization rates.
Merchants should ensure accurate tax calculation and transparent pricing to build consumer trust. Collaborating with local logistics providers can streamline delivery operations and improve reliability. Staying updated on regulatory changes, such as consumer rights laws, ensures compliance and builds credibility.
35GWI data | 36PWC Voice of the Consumer Survey | 2024 | 37 “Programa Remessa Conforme. O que é? Como Funciona?”, Receita Federal, https://www.gov.br/receitafederal/pt-br/assuntos/aduana-e-comercio-exterior/manuais/remessas-postal-e-expressa/programa-remessa-conformeo-que-e-como-funciona/programa-remessa-conforme-o-que-e-como-funciona-1.
2. Building trust in digital payments
While PIX adoption is high in Brazil, consumers remain wary of online fraud and cybersecurity risks. Merchants must provide secure platforms and ensure smooth transaction experiences to gain trust. In South Africa, cash-on-delivery remains a preference for some consumers, reflecting concerns about trust in digital payment systems. Additionally, rural consumers may lack the digital literacy needed to navigate eCommerce platforms.
Implementing advanced fraud detection systems and transparent refund policies can reassure consumers. Displaying trust signals, such as secure payment badges, further enhances credibility. Merchants can build trust by offering hybrid payment options, such as cash-on-delivery combined with digital wallet incentives. Educating consumers on the safety and benefits of online payments through localized campaigns can also encourage adoption.
3. Managing consumer expectations
Brazilian consumers expect flexible payment options, such as installments, and fast delivery services. Failure to meet these expectations can lead to cart abandonment. Price sensitivity is a key factor in South Africa, especially among middleclass and rural consumers. Transparent pricing, clear shipping fees, and competitive discounts are critical to winning over South African shoppers.
Offering multi-installment options for credit card payments and leveraging PIX for instant transfers ensures alignment with local preferences. Investing in efficient last-mile logistics enhances delivery reliability. Merchants should consider localized pricing strategies and focus on highlighting valuefor-money deals. Providing affordable cross-border shipping options can also address concerns about hidden costs.
4. Overcoming infrastructure gaps
While urban areas have robust infrastructure, rural regions face connectivity challenges, limiting eCommerce penetration. Like Brazil, rural areas in South Africa suffer from limited access to digital infrastructure and reliable logistics. Merchants can work with regional delivery networks and optimize mobile-friendly platforms to reach rural consumers effectively. Collaborating with local telecom providers to improve connectivity and offering offline payment methods can help bridge the gap.
5. Tackling cultural nuances
In Brazil, consumer behavior varies significantly across regions. For instance, shoppers in São Paulo may prioritize convenience and speed, while those in smaller cities focus on affordability. South African consumers, meanwhile, exhibit diverse cultural and language preferences, reflecting the country’s multiracial and multilingual population. Merchants should leverage localized marketing campaigns and product offerings tailored to regional preferences. Localizing websites in multiple languages, including English and Zulu, and tailoring promotions to cultural festivals or events can boost engagement.
While Brazil and South Africa present unique regulatory and consumer challenges, these barriers can be overcome with strategic planning and localized approaches. By prioritizing compliance, building trust, and addressing regional nuances, merchants can unlock the vast potential of these high-growth markets. Nuvei’s localized expertise and solutions, including regulatory compliance support and tailored payment integrations, empower businesses to navigate these challenges with confidence.
Nuvei simplifies cross-border compliance and offers secure, scalable payment options, overcoming regional challenges for merchants.
Future trends:
The role of technology in payments
The global payment landscape is rapidly evolving, driven by technological advancements and shifting consumer expectations, with several key trends set to shape the future:
AI in fraud prevention:
A trend gaining ground in highgrowth markets is the use of AI technologies to help merchants analyze customer data — including purchase behavior and browsing history — to provide tailored product recommendations and increase conversion rates. With AI technology, businesses can reduce financial losses, increase system security, and lower rejection rates. Ultimately, this leads to improved sales conversion and better company performance in high-potential economies, particularly in those marked by high fraud rates.
Real-time payments and digital ecosystems:
Real-time payment systems are becoming the backbone of digital economies. The integration of recurring payment functionalities and QR code capabilities in these systems indicates their potential to evolve into comprehensive digital ecosystems, rivaling traditional banking infrastructure.
Blockchain and crypto integration: Blockchain and cryptocurrencies are gaining traction in emerging markets as viable payment alternatives, particularly for cross-border transactions.
The next wave of digital marketplaces: Like other economies, the online retail sector in our eight high-growth markets has also seen a rapid rise in the popularity of marketplaces.38 By enabling third-party sellers to plug into their platforms, marketplaces link millions of sellers to billions of customers worldwide. They allow for price and product comparisons and offer shoppers a wide range of product assortment, which helps to explain their widespread adoption.
Nuvei is at the forefront of technologies like AI, blockchain, and cryptocurrency support, providing businesses with future-proof payment solutions that can scale with market demands.
By using advanced technologies like AI, complex data analysis, and machine learning Nuvei optimizes customers’ payments, reduces fraud and improves transaction success in complex regulatory landscapes.
Nuvei supports all stablecoins, including merchant-minted coins and USDC across 14 blockchains with 24/7 settlements. Stablecoins lower costs, enhance supply chain cash flow, and speed up cross-border payments and remittances.
Conclusion: Choose a partner that specializes in high-growth markets
Nuvei offers a comprehensive payment solution tailored for highgrowth markets, supporting realtime payments, localized digital wallets, and multi-currency crossborder transactions. With over 700 alternative payment methods and AI-driven fraud prevention, Nuvei provides businesses with the flexibility, security, and scalability needed to succeed in these dynamic regions.
By partnering with Nuvei, businesses can confidently expand into high-growth markets, leveraging localized expertise and cutting-edge technology to deliver seamless payment experiences.
Local expertise and flexibility:
Nuvei’s human-led support and global acquiring network make it simple to expand into new markets without switching partners or acquirers.
Merchant of Record:
Nuvei offers merchant of record services, allowing its customers to process payments like a local business without a physical presence, significantly simplifying local tax implications and regulatory requirements.
End-to-end solutions:
Nuvei’s payment platform supports everything from fraud prevention to cryptocurrency integration, making it the ideal partner for businesses expanding into high-growth markets.
Global reach:
Nuvei supports over 700 alternative payment methods (APMs), enabling businesses to tailor their payment strategies to local preferences in high-growth markets.
Faster settlements:
Nuvei offers real-time payments and payouts, and immediate access to funds, which is critical for maintaining liquidity in fast-moving markets.
Scalability and compliance: With compliance expertise across multiple jurisdictions, Nuvei helps businesses scale while staying aligned with local regulations in highgrowth regions.
Nuvei and Payments and Commerce Market Intelligence (PCMI) have developed this guide to help international merchants navigate the goldmine of digital opportunities in eight high-potential markets: Brazil, Chile, Colombia, Hong Kong, India, Mexico, South Africa, and the United Arab Emirates (UAE).
Of these markets, seven are classified as emerging economies by the IMF and one — Hong Kong — is not only one of the world’s premier trade, business, and financial centers but also a key springboard for investments in EMs, particularly in China.
This specific guide analyzes South Africa and Brazil as two leading highgrowth economies in their respective regions and aims to support merchants tap into the unique opportunities they present.
Methodology and approach
To develop the data and analysis on each market in the PCMI eCommerce Datapack, PCMI first compiles all publicly available data from official sources, including central banks, banking authorities, company financial reports, chambers of commerce, eCommerce associations, fintech associations, local press, market reports and government statistics, as well as data from the World Bank and affiliated international organizations.
The PCMI team analyzes the data with a critical approach, identifying the holes, errors, and inconsistencies in this data to prepare it for primary research. Then, PCMI conducts interviews with local eCommerce industry stakeholders to clarify, deepen, and streamline data collected via secondary research.
In the 2024 creation of this dataset, PCMI interviewed over 80 eCommerce executives including banks, acquirers, payment gateways, payment service providers, merchants, and consultants. Finally, PCMI conducts a rigorous analysis of the primary and secondary results, leveraging the perspective of our historical data collected since we first began building this dataset in 2015, to arrive at the final results.
The methodology takes a top-down approach, utilizing macro industry data and the perspective of industry aggregators (i.e. acquirers, PSPs) rather than a bottom-up approach, based on consumer surveys.
To the extent possible, the dataset is built using real, official numbers, such as official credit and debit card volumes, bank transfers and other official reporting of payment methods. Primary research combined with institutional knowledge are combined to make the needed estimations and assumptions to arrive at all breakdowns in the dataset. Projections are calculated based on the opinion of industry stakeholders and accounts for factors such as inflation, GDP growth and regulation.
PCMI avoids making projections based on the launch of new products or features, due to the unpredictable nature of such launches. Please note, PCMI reserves the right to revise historical data as new information becomes available.
How do we define eCommerce?
In this data set, our eCommerce analysis covers all online purchases of goods and services, regardless of the device or payment method used.
Our analysis includes:
• Purchases made by local citizens using all locally-issued payment methods
• Cross-border purchases made with locally issued payment methods
• B2C and B2B purchases that move through an eCommerce checkout
• All product and service verticals, including travel, retail, and digital goods and services.
Retail is defined as: All physical products purchased directly from the merchant or marketplace
Travel is defined as: Travel services including airline tickets, car rentals, tour packages, hotels and AirBnB stays
Ride hailing and delivery is defined as: Digital services that include services including ride-hailing and delivery apps
Online gaming is defined as: Spend on online games or in-game purchases, which can be played via mobile, desktop, or a dedicated console. This does not include sports betting, online gambling or games of chance
Online streaming is defined as: Video and music streaming, typically purchased as a subscription
Other is defined as: Additional digital goods and services including sports betting and online gambling, online education, digital downloads, mobile top-ups, and recurring purchases such as monthly bills, insurance payments, school tuition payments, home ownership association fees, parking, taxes and government licenses and fees if they are paid online over an eCommerce gateway.
These expenses are not included if they are paid online via online banking or direct debit from a check or savings account.
Recurring payments to a credit or debit card are included, as are one-time payments over an online ACH portal such as Botón PSE in Colombia.
SaaS is defined as: The purchase of software delivery accessed via cloud services, rather than through the installation of said software on a computer or other device. Our data includes SaaS purchases made via an online website/checkout process, including subscription and recurring payment models, i.e. Microsoft Office, Slack, Hubspot, Canva, Dropbox, etc. These may be used for both consumer and business purposes and both are captured in our data.
We do not include SaaS purchases that are not made through an official online checkout, such as invoice payments via online banking or wire transfer.
All locally issued payment methods including:
• Locally issued credit and debit cards, online bank transfers, cash payment platforms such as Oxxo in Mexico or Fawry in Egypt, digital wallets such as PayPal, MercadoPago, ApplePay, cash on delivery, and other miscellaneous payment methods.
Please note the following definitions:
Cash Payment is defined as:
A payment platform that enables a shopper to make an online order, receive a bar code or unique PIN and use that bar code or PIN to make the payment in cash at an affiliated retail location. Such platforms often allow payment using an online bank transfer. Examples include Oxxo in Mexico and PagoFácil in Argentina
Digital wallet:
PCMI defines a digital wallet as a payment method that stores any funding source on file, including a credit card, debit card, bank account, or stored balance, and uses that funding source to remit payment.
eCommerce volume falls into the digital wallet category if the wallet brand is selected at checkout, even if a different funding source (such as a credit card) is ultimately selected as the funding source. Examples include staged wallets such as PayPal, TigoMoney and MercadoPago.
Please note: Tokenized card wallets, or passthrough wallets, such as ApplePay, are included under credit and debit card volume.
Bank Transfers:
When applicable, PCMI names the specific bank transfer scheme, such as UPI or Pix. If the bank transfer scheme is selected at checkout, this volume is classified as the bank transfer scheme, not the bank or digital wallet ultimately used to execute the payment.
BNPL:
is defined as a payment button offered by a BNPL fintech that enables the shopper to finance the purchase at the time of checkout, with multiple payment methods, including credit cards, debit cards, bank transfers or cash. BNPL offerings that take place within a wallet ecosystem (such as MercadoCrédito) are not considered here.
Hybrid payment methods:
Payment methods that group several of these payment methods under one brand are specified by their name, i.e.
Country specific notes
• In South Africa, InstantEFT is considered within bank transfer payment methods OZOW and Stitch.
Other technical specifications
• Unless otherwise stated, all currency is expressed in US dollars.
• Please note that numbers contained in figures and tables may not add due to rounding. Please note, our numbers may not include sports betting or online gambling volume paid via cash voucher or other volume that falls outside the purview of card acquirers and bank transfers.
