Latin America, Africa and Asia are driving global growth in new consumers

Growing markets in Latin America, Africa and Asia are driving global growth in new consumers, with India leading the way, adding 34 million people to the consumer class this year, almost a third of the global total of 109 million. After Asia, Africa and Latin America are the second and third regions, respectively, to add more people, according to the World Data Lab.

This overall consumer growth, driven by these three dynamic regions, is also spilling over into the digital commerce sphere: the combined value of digital commerce markets in Latin America and Africa is expected to exceed US$1 trillion by 2026, while India is expected to exceed US$275 billion, according to Payments and Commerce Market Intelligence (PCMI) in a new annual report. AbroadEBANX’s comprehensive study on the digital and payments market in emerging economies.

While digital commerce is growing by 13% or 12% annually in more consolidated markets around the world, such as the US and Europe, online sales are growing at a much faster pace in emerging economies, by 20%, according to Statista, a study. More than half of the population in these regions already accept digital payments, positioning them as central to economic growth and consumer access.

“There is a solid demographic reason: emerging economies have a young and growing population, which contrasts with developed regions. In addition to the demographic and economic impulse, emerging economies are also benefiting greatly from digitalization,” says Paula Bellizia, President of Global Payments at EBANX.

“The digital revolution has disrupted industries and opened up opportunities for both local and global players, from verticals spanning SaaS, digital advertising and B2B online commerce, to gaming, streaming, social media and e-commerce. And payments have been the backbone of this growth,” she added.

Latin America’s digital market is set to nearly double in size by 2026, reaching $944 billion at a CAGR of 23%, according to PCMI data for Beyond Borders, underscoring the solid opportunity. Brazil, Latin America’s digital commerce powerhouse, boasted a $275 billion market last year and stands out as a significant force, ranking fourth globally in terms of digital buyers, according to Insider Intelligence.

Mexico, Colombia and Peru are also strong competitors, with annual digital trade growth rates of around 30%. Central American and Caribbean countries such as Costa Rica, El Salvador, Panama, Guatemala and the Dominican Republic are also showing no signs of slowing down, accelerating at an annual rate of around 20% through 2026, proving that a block-based approach to this Latin American region can contribute to the global expansion strategy of any global digital player.

India is another prime example of digital potential in emerging economies: the Asian country is the world’s second-largest online shopping market, behind only China, with some 350 million people powering a digital commerce market that exceeded $184 billion last year.

Yet, as Insider Intelligence data in its Beyond Borders report shows, the penetration rate of online retail is still at 33%, which shows that there is still significant untapped opportunity in the country – especially if efforts are directed towards improving access to payments for India’s diverse population.

Financial inclusion has been at the heart of two powerful cases inspiring the world: UPI in India and Pix in Brazil. With a great user experience, zero service costs for consumers and minimal or no fees for merchants, both systems are revolutionizing both offline and online shopping: Pix is ​​part of the daily lives of 4 out of 5 adults in Brazil, according to the country’s Central Bank.

In the past three years, nearly 8 out of 10 customers making their first online purchase with an EBANX merchant have opted to pay with Pix, according to internal EBANX data. In India, UPI has a 41% share of total digital commerce, according to PCMI, making it the most popular payment method among Indian online consumers.

As an early adopter of digital payments, soon to be home to 1 billion adults by 2030, Africa is also a key region for exceptional digital growth in trade and payments. After the rapid adoption of digital payments, which saw its penetration rate rise from 23% to 46% of many countries in less than eight years, Africa is now on the cusp of the next big thing: digital trade, driven by mobile phone penetration rates and the steady adoption of local, alternative payment methods to the online world, such as mobile money, which has achieved near-universal penetration in countries like Kenya.

It is interesting to see how innovations brought by alternative payments improve the entire ecosystem and also impact cards – including debit cards – which remain stable and continue to play an important role in the digital economy as account ownership grows in emerging markets.

“Cards and alternatives learn from each other, take over functions, paying attention to the needs of sellers and consumers,” Bellizia noted.

“According to PCMI data from Beyond Borders, credit and debit cards combined account for 51% of digital commerce value in Brazil, 66% in Mexico, and 75% in Chile. In India, cards account for 43% of online transaction value; and high penetration also applies to African countries: in Morocco, 42%; in Nigeria, 36%.

“A payment strategy for emerging markets must consider a balance between cards and alternative payments, tailored to specific countries, industries and business models, focused on offering customers the best payment experience, enabling them to pay with the method of their choice. This promotes true access,” she added.

A new Beyond Borders report also reveals the next frontier for innovation and growth in the payments industry: B2B payments – businesses buying from other businesses. Today, 42% of Kenyan and 63% of Indian businesses make purchases online. In Latin America, 64% of businesses in Brazil and an impressive 85% in Colombia, significantly higher than the global average of 50%, according to OECD and UNCTAD data. By 2027, growing markets in Latin America, Africa and Asia-Pacific will account for 40% of the total value of B2B payments made online worldwide, yet an estimated 70% of B2B transactions are still largely manual, according to Capgemini, without smoother flows.

“This opens up a huge opportunity where alternative payments can be a game-changer: EBANX internal data shows that local payments are improving B2B transaction acceptance rates, with internal rates exceeding 80%,” concluded Paula Bellizia.