As online shopping continues to grow, with the e-shoppers rate rising (52% in 2018) and sales expected to exceed USD 7 billion by 2019, it becomes apparent that the Chilean market is fertile ground for those looking to invest. But for an effective return, merchants need to ensure that leads convert to actual sales by offering preferred local payments available at checkout.
In Chile, consumers have at their disposal several ways to pay online, and the preferred one is card payment. The country has the highest card usage rate of LATAM, but Chileans favor local cards. In fact, most cards issued in Chile are not enabled for international use.
Consequently, merchants must get acquainted with the top local payments for e-commerce in Chile to assure checkout optimization, as well as take into consideration the unique number of local aggregators that are connected to banking institutions, such as Redcompra, and WebPay.
Redcompra is a popular card service brand managed by Transbank, the only company in Chile authorized to process debit cards issued by banks. Because it enables debit and prepaid cards payment, as well as OnePay (a mobile app), Redcompra is suitable for consumers who don’t hold credit card.
Also developed by Transbank, WebPay is a payment platform aimed to allow consumers to securely pay online through credit and debit cards or Redcompra, as well as through the app OnePay. As it accepts a range of payment methods , it’s beneficial both for merchants and consumers:
- 100% access to online shopping
- Attracts much of Chilean population
- Builds up business expansion
- Allows consumers to pay in installments
Another local payment service provider is Servipag, which aggregates several payment methods, including bank slips, bank transfers, commercial cards, debit cards, and Servipag Cash.
Why providing local payments boosts Chile’s e-commerce
When a country such as Chile meets a set of features that make it very attractive to global e-commerce, then international merchants must offer the payment methods that Chilean e-shoppers expect and process them locally for the best payment conversions:
- The most competitive country in LATAM
- The highest real GDP growth forecast, according to OECD
- 82% internet penetration rate in 2019
- Progressive increase in online purchases made in international sites
- USD 4 billion e-commerce sales in 2017, made by 5.5 million active consumers
- Business-friendly environment
- Stability of policies
- Effective legal framework
Source: Business Expansion into Brazil, Mexico, and Chile | BoaCompra White Paper
Address local payments with a partner
Partner with a local expert, such as BoaCompra, to keep up with the local payment methods of each Latin American market. With your partner’s help, you can handle payment system implementation in your e-commerce, and focus on your business.