At an event held in Napa Valley, U.S., EBANX revealed new data about the consumer and digital markets in rising economies and discussed the future of payments with experts from around the world
CURITIBA, BRAZIL, and NAPA VALLEY, U.S., October 2, 2024 – India is set to surpass the impressive mark of US$ 5.4 trillion in consumer spending by 2034, up from the current US$ 1.8 trillion, according to data from the World Data Lab analyzed by EBANX, a global technology company specializing in payment services for emerging markets. It represents a growth of 12% per year, three times higher than the projection for the United States, at 4%, and more than two times higher than the global average of 5%. This boost will place India as the third-largest market in the world in consumer spending, behind only the United States and China. These figures were presented this week during the Napa Valley (U.S.) chapter of the EBANX Payments Summit, an annual event that brings together industry leaders to discuss trends and innovations in the digital economy and payments.
"India has recently achieved unprecedented levels of financial inclusion and is actively promoting the adoption and growth of the online sector. The forecast for consumer spending will be felt in digital commerce as well, in all verticals," analyzes Rashmi Satpute, Country Director of India at EBANX. In addition, EBANX highlighted two other regions that have been standing out for their relevance and acceleration: Latin America and Africa, whose countries are among the fastest-growing worldwide. The giant Egypt is expected to accelerate growth by triple-digits in consumer spending over the next decade, 167%, while the smaller economies, like Ethiopia, will grow by an impressive 429%. Kenya (115%), Morocco (107%), Ghana (106%), and South Africa (42%) are other African countries mentioned in the analysis. In LatAm, Brazil (62%) and Mexico (54%) are leading the way, each surpassing US$ 2 trillion in consumer spending over the next decade.
"This growth is directly linked to the digitalization of the economy and the payment innovations these markets have been experiencing in recent years," explains Satpute. "During the Payments Summit, we heard from numerous global players that emerging countries are becoming increasingly important to their businesses. They have enormous digital potential that is catching the attention of the entire world." Data from Statista Market Insights featured in Beyond Borders 2024, digital payments and commerce report by EBANX, show that digital commerce in rising markets will grow sixfold between 2017 and 2027, at a rate of 20% per year, which is 7 percentage points higher than developed countries. The digital commerce market of India, Latin America, and Africa together will surpass US$ 1.3 trillion within three years, according to Payments and Commerce Market Intelligence (PCMI).
Challenges, innovations, and opportunities
Industry leaders gathered in Napa Valley had an in-depth discussion on the state of digital economies and payments in rising markets. "One thing is linked to the other. While in India and across Latin America, digital commerce has driven digital payments, in Africa we are seeing the opposite, with digital payments driving digital commerce. The context and challenges of each impact the means, not the end, because the result of this digital revolution is very similar in all these regions: economic development, financial inclusion, and innovation," says Juliana Etcheverry, Director of Country Growth - Latin America at EBANX. Due to the low penetration of credit cards, barriers related to banking access, and consumer behavior, fintechs and governments began seeking solutions to simplify consumers' lives and allow them to purchase products and services using local payment methods. The result of this has been a transformation in the way people engage with digital commerce in emerging markets.
In India, the country with the most widely used instant payment system in the world, UPI is the preferred method for online purchases, accounting for 55%, 30 percentage points higher than credit cards, per PCMI. For recurring purchases, UPI AutoPay has about 10 million scheduled payments per month, with an average approval rate of 92%, according to National Payments Corporation of India (NPCI) data. In Latin America, Brazil's instant payment system Pix is following the same path and will surpass credit cards in digital commerce by 2025, when the local Central Bank plans to launch Pix Automático (Automatic Pix in free translation) for recurring payments. "Incorporating Alternative Payment Methods (APMs) is not only about offering more options, it's also about bringing people in," highlights Etcheverry. "Companies accepting Pix with EBANX in digital commerce in Brazil experienced a 25% growth in the number of clients and a 16% increase in their revenue."
African countries are other examples of how emerging markets have been leading in payment innovation. It has been seventeen years since the continent embraced mobile money, a financial service that allows users to pay and exchange values through a cellphone, with no need for an internet connection or a bank account. It accounts for nearly half of the total digital commerce in Kenya, for example – US$ 2.3 billion, or 48% of the market, according to PCMI data. Including mobile money, APMs will represent around 63% of African digital commerce by 2025. "This landscape is promising, but there are still challenges that need to be addressed, such as high market fragmentation and a lack of interoperability. In Napa Valley, industry experts advocated for strategic partnerships to connect Africa with the rest of the world. And that is exactly what EBANX has been doing," Wiza Jalakasi, Director of Africa Market Development at EBANX pointed out.
Payment trends moving forward
Among the many constructive and forward-thinking discussions, one of the most highly anticipated by participants at the EBANX Payments Summit were those addressing future trends in emerging markets, such as the combination of APMs and cards into hybrid methods – in India, for example, credit cards are seamlessly integrated with UPI, enabling credit card payments through the instant payments app, in a well–known UX and flow. "It's amazing to see how these countries are creative and innovative in finding solutions that not only change but also simplify consumer habits," states Jalakasi. In Egypt, where 64% of payment volume made in digital commerce are by cash usage, even unbanked people can purchase online and pay through apps or QR codes. "This is financial inclusion, this is access."
EBANX Payments Summit
Napa Valley was the second stop of the 7th EBANX Payments Summit, which is being held in four different countries. The first chapter took place in Barcelona, Spain. The next one will be in Bangkok, Thailand, from October 24 to 26. The final chapter is scheduled for November 5 in São Paulo, Brazil. All these events will explore the forefront of payments innovation across rising economies and bring together leaders from the most important companies and organizations in the industry, such as João Del Valle, CEO of EBANX; Maria Francis, Head of Business Development for Americas at National Payments Corporation of India (NPCI); Rene Salazar, Head of Financial Partnerships for Latin America at Stripe; Anderson Teixeira, Head of Global Cards at Santander Brasil; Wolfgang Fengler, CEO of World Data Lab; Nathan Marion, Head of B2B at Nubank; Andrew Kaing, Senior Product Manager at Canva; Constanza López Vela, Deputy General Manager of Acquiring Business at Banorte Mexico; and several others.
ABOUT EBANX
EBANX is the leading payment platform connecting global companies with customers from the fastest-growing digital markets in the world. The company was founded in 2012 in Brazil with the mission of giving people access to buy in international digital commerce. With powerful proprietary technology and infrastructure, combined with in-depth knowledge of the markets where it operates, EBANX enables global businesses to connect with hundreds of payment methods in different countries in Latin America, Africa, and Asia. EBANX goes beyond payments, increasing sales, and fostering seamless purchase experiences for businesses and clients.
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