The South American digital wallet market was valued at US$10.073 billion in 2020.
The region is experiencing a substantial rise in smartphone users and the growing penetration of the internet in countries like Brazil and Argentina. With this, the adoption of digital wallets is also increasing, which is driving the South American digital wallet market growth. Supportive government policies and initiatives to boost digitalization are also leading to the growth of this regional market during the forecast period. The growing e-commerce industry in South American countries is also a significant driver of the digital wallet market. According to the Cámara Argentina de Comercio Electronico (CACE), the e-commerce sales volume for Argentina surged by 56 percent in the first half of 2019 compared to the same period in 2019, with total sales amounting to more than US$2.5 billion.
The presence of major digital wallet service providers such as Samsung Pay, Google Pay, Mercado Pago, and Apple Pay contributes to the South American digital wallet market growth. Increasing usage of car services apps with more users and enhanced payment experience also supports market growth across this region. Uber, for instance, has recently launched Uber Cash in Brazil: a digital wallet that offers pre-paid payment options for all of the services offered by the company. The recent COVID-19 global pandemic outbreak has become one of the major drivers of the digital wallet market in South America. Mandatory quarantine and social distancing laws implemented by governments are making digital wallets a necessity, thereby driving regional market growth.
The South American digital wallet market has been segmented based on the device and application. The device has segmented the market into PCs/laptops and smartphones. By application, the South American digital wallet market has been classified into Money transfer, recharge, movie booking, food ordering, and others. The South American digital wallet market has been segmented into Brazil, Argentina, and others.
Cash is seen as a prospective carrier of the COVID-19 virus during the COVID-19 crisis, and government agencies and regulatory authorities are demotivating its use. Consumers are bound to shift to digital payments a lot quicker than they would be otherwise because of the pressing need for basic commodities. Those who rely solely on cash for payment are finding it more difficult to make purchases. Furthermore, with many banking institutions closed, retail stores have few possibilities for depositing cash into their bank accounts, and they do not want to be left holding large sums of cash that could be stolen. By safely and cohesively storing all of a consumer's payment information, digital wallets primarily completely eradicate the need to carry a wallet. They also provide an additional payment option when buying online or at the petrol station using a phone. Some digital wallets not only provide convenience but also provide consumers with incentives and perks for using them. Starbucks Pay, Target Wallet, and Amazon Pay, for example, are digital wallets that provide benefits such as loyalty points and coupons. The sudden uptick in digital wallet transaction data was a result of digital payment headwinds, as customers opted for online payment methods rather than cash. Therefore the South America Digital Wallet Market was boosted by the Covid-19 disease outbreak.
January 2022, Strike, an electronic wallet and mobile payment company specializing in Bitcoin-related services, has recently launched in Argentina.
November 2020, Paynetics AD, a financial technology and payment provider, pyre, an online banking platform provider, and Bulgarian American Credit Bank have announced the launch of [email protected] Pay, a new digital wallet product.
In May 2020, Ohana disclosed that its digital wallet will enable users to pay for daily goods and services as well as taxation. The digital wallet provided by the company can also be used to transfer funds peer-to-peer. There is a free option to carry out transactions using QR codes.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.