Expanding To Latin America: A Smart Guide For Businesses

With its e-commerce market volume expected to surpass 1 trillion USD by 2027, Latin America is one of the world’s fastest-growing digital economies.

Markets like Brazil and Mexico are seeing explosive adoption of real-time payment systems such as PIX, fundamentally changing how consumers transact.

This creates a rare window of opportunity for merchants to reach mobile-first audiences who are ready for cross-border transactions. Businesses that win in Latin American markets are those that operate locally from day one, offer the right payment options, process on domestic rails, and navigate compliance without friction.

Latin America’s e-commerce market

With more than 300 million digital buyers, Latin America has become a hub for online business growth and expansion.

Between 2026 and 2028, the share of retail e-commerce sales is expected to grow by 54.45 billion USD, fueled by an expanding consumer market of a young, mobile-first population. This signals a structural shift in how consumers across the region discover and purchase products.

In countries like Brazil and Mexico, smartphones are the primary devices for commerce. However, unlike more standardised markets, Latin America doesn’t operate on a single payment logic.

Consumers rely on a mix of alternative payment options, such as instant bank transfers like PIX, cash-based vouchers like OXXO, and digital wallets like Mercado Pago. Traditional options like Boleto Bancário also play a vital role, especially among underbanked consumers.

Brazil, Mexico, Colombia, Chile, Argentina, and Peru are the region’s largest markets, and they’re scaling fast. Between 2023 and 2028, the Brazilian e-commerce market alone is projected to grow by 80% from 36.8 billion USD. Mexico is following close behind, nearly doubling its market size from 31.7 billion USD to 58.9 billion USD over the same period.

Another key driver behind economic growth in the region is cross-border commerce. Platforms like Mercado Libre, AliExpress, and Amazon are making retail accessible, especially for underbanked populations. By supporting a wide range of local payment options, these marketplaces are creating opportunities for sellers to reach new customer segments.

The fastest-growing industries in Latin America

E-commerce

Marketplace platforms like Mercado Libre and Amazon are removing the barrier to entry for small and medium-sized businesses, giving them immediate access to vast local audiences. At the same time, they are reshaping consumer expectations by making cross-border shopping the new normal, a trend that directly translates into revenue. 

By 2029, Brazil’s e-commerce market is expected to reach 64.09 billion USD, while Mexico’s e-commerce market is projected to reach 175.8 billion USD by 2034. Most countries across the region also saw a year-on-year increase in e-commerce sales.

Fintech

In Latin America, large segments of the population remain underbanked or unbanked. This has created space for innovation, which fintech companies in the region are actively addressing through products and services across payments, lending, and insurance.

As a result, the unbanked population in Brazil decreased to just 3% (4.6 million people) in 2024. The remaining 123.77 million Brazilians are already using fintech products to participate in digital commerce.

In Mexico, adoption is accelerating just as quickly, with digital banking and payment users projected to more than double from 40,000 in 2018 to 86,731 by 2027.

Software and technology

As consumers demand faster, safer, and more trustworthy experiences, the need for modern software infrastructure is rising. In 2024, Latin America’s software market generated 39.96 billion USD in revenue, and it is expected to reach 79.64 billion USD by 2030. In Brazil alone, the software market is expected to grow by over three billion USD between 2023 and 2028. 

To succeed in Latin America’s diverse markets, businesses must align with the region’s operating practices across payments, regulation, and technology.

Payment trends shaping Latin America’s payments landscape

Understanding Latin America’s payment ecosystem is one of the first steps to establishing a successful presence. Payment preferences vary not only by region but also by country, customer segment, and even transaction type. Businesses should offer the right payment options to build trust and drive conversions.

Bank transfers

Introduced to increase financial inclusion and competition, Pix is now a cornerstone of Brazil’s payment ecosystem. It enables instant transactions, supports flexible payment amounts, and operates with a level of convenience that traditional systems fail to match.

By 2028, PIX is projected to capture 50% of Brazil’s e-commerce market share, outpacing digital wallets, debit cards, and even cash.

Digital wallets and mobile payments

In many Latin American countries, traditional card penetration remains relatively low. For instance, in Colombia and Costa Rica, credit card penetration was 13.06% and 14.53%, respectively, in 2024. In such markets, digital wallets and mobile-first solutions are the primary payment methods.

Platforms like PicPay and Mercado Pago are central to the ecosystem. Operating across both online and offline environments, they allow consumers to pay using local cards, bank transfers, or cash vouchers, all within a single interface.

In early 2024, 44% of Brazil’s population was using Mercado Pago. However, PicPay is the leading mobile wallet in Brazil. It was 6% ahead of Mercado Pago and 24% ahead of Google Pay in 2024.

Cash

Cash-based payments remain a popular method among many consumers in Latin America. 

Boleto Bancario is the most popular method, allowing customers without bank accounts or credit cards to pay for online purchases with cash at local banks, ATMs, or post offices.

Similarly, in Mexico, OXXO allows customers to pay for online purchases in cash at its convenience stores, which are widely available across the country at more than 21,000 locations.

Credit and debit cards

Across the region, credit card penetration is lower than debit card penetration. However, in some regions, such as Brazil, credit card usage is significant. In 2024, 51.6% of Brazilians actively used credit cards for transactions.

Final thoughts

For merchants, successful expansion into Latin America will depend on their ability to navigate fragmented payment ecosystems, local regulations, and rapidly evolving consumer behaviour.

Unlimit provides the financial infrastructure to make that possible. By mapping hyper-local payment ecosystems directly into a single programmable layer, Unlimit enables businesses to expand across Latin America without complexity.

From instant payment options like PIX to widely used solutions like Boleto Bancário and OXXO, Unlimit connects businesses directly to the rails that power the region’s digital economy.

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