Retailer Online Payment Acceptance in North and Latin America

Expertise in financial services
Web: www.finaccord.com. E-mail: info@finaccord.com
Retailer Online Payment Acceptance in North and Latin America
© Finaccord Ltd., 2014 1
Retailer Online Payment Acceptance
in North and Latin America
Report prospectus
March 2013

Prospectus contents
What is the research?
What methodology has been used?
How do retailers surveyed break down?
Which specific retailing groups have been researched
What is the report structure?
What are the key features of the research?
How can the research be used?
How can the PartnerBASE™ be used?
Who can use the research?
What are some of the key findings?
What is the cost and format?
What other reports are available?
How can the research be purchased?
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What is the research?
Retailer Online Payment Acceptance in North and Latin America is a report, based on a survey of
over 1,400 prominent retail brands in 12 countries, about the online payment types that they accept
for purchases made online by their customers. Countries covered are Argentina, Brazil, Canada,
Chile, Colombia Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay and the US.
Means of online payment investigated are payment cards, online accounts, mobile payments, direct
bank transfers and other means consisting mainly of payment on delivery (commonly referred to as
'COD' for 'cash on delivery') and payment upon receipt of invoice.
Moreover, the PartnerBASE™ database that accompanies the report details the payment card
brands, online account providers and mobile payment means accepted by retailers that offer online
shopping, thereby offering clear evidence for the companies that are well-placed both in each
country and across North and Latin America as a whole.

What methodology has been used?
The main research input into this study is Finaccord’s on-going investigation of the involvement in
financial services, in general, and online payment acceptance, in particular, of over 1,400 major
retailing brands across 12 countries in North and Latin America.
In the specific context of this report, the aim of the investigation is to gather top level data concerning
the acceptance of online payment types by the organisations in question, and the payment card
brands, online account providers and mobile payment means with which they work in this context.
Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed, the
majority with just a single outlet, Finaccord has sought to focus on the very largest entities that are
likely to be of most strategic interest to organisations involved in the online payment sector and wider
financial services markets. Indeed, the major retailers break down by category and by country as
illustrated in the graphics overleaf.

How do retailers surveyed break down? (1)
BY TYPE BY DISTRIBUTION MODEL
Fashion, 218
Supermarket /
hypermarket, 288
Consumer
electronics,
236
DIY / furniture /
home, 133
Health and
beauty, 85
Speciality, 107
Fuel, 79
Department store /
variety, 148
Sporting goods, 74
Books and media, 45
Offline only, 631
Online only, 156
Mixed, 626

How do retailers surveyed break down? (2)
BY COUNTRY
US,501
Canada,212Brazil,211
Argentina,98
Mexico,83
Chile,69
Colombia,54
Peru,47
Ecuador,46
Costa Rica, 34
Paraguay,30
Uruguay,28

Which specific retailing groups
have been researched?
Among the major retailing groups included in the research are:
Abercrombie & Fitch
Aeon
Ahold
Aldo
Alpargatas
Amazon
American Apparel
AmerisourceBergen
Ann Taylor
Associated Wholesale Grocers
Berkshire-Hathaway Retail
Best Buy
Canadian Tire
Caro Cuore
Carrefour
Casa & Ideas
Casino Group
Cencosud
Charming Shoppes
Chedraui
Chico's
Controladora Comercial Mexicana
Corporación El Rosado
Corporación La Favorita
Costco
D'Avó
Din
Empresas Ripley
Expert International
Extreme Retail
Exxon Mobil
Falabella
Famsa
Furniture Row Companies
Gap
Grupo Carso
Grupo Deib Otoch
Grupo Elektra
Grupo Exito
Grupo Gigante
Grupo Inditex
Grupo Pão de Açúcar
Grupo Vierci
Home Depot
Home Hardware
Houchens Industries
Hudson's Bay Company
IAC
IFH Peru
Katz Group
Kering
Kroger
Limited Brands
L'Oreal
Luxottica Group
Macy’s
Mango
McKesson Pharamceuticals
Men's Wearhouse
Metro
Mimo & Co
Office Depot
Olímpica
Overwaitea
Petrobras
PetSmart
Pintuco
Raley's
Reitmans
Repsol
Safeway
Salcobrand
Savemart
Sears
Seven & I
Shell
Shoppers Drugmart
SHV Makro
Soriana
Staples
Sun Capital Partners
SuperValu
Tengelmann
The North West Company
TJX
Transworld Entertainment
Walmart
Weston
Whole Food Markets
Williams-Sonoma

What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.
1. Introduction: offering rationale, description of methodology and other related notes.
2. Regional Overview: a pan-American overview of the activity of major retail brands in the field of
online payments. As well as a comparative analysis of the types of payment accepted online by
retailers in each country, this section also investigates across each country the extent to which
MasterCard, Visa and other national and international payment card brands can be used online, the
degree to which PayPal or rival online account firms enjoy wide acceptance, and whether mobile
payment providers are carving out a position for themselves in the online payment space.
3. Argentina: an in-depth analysis of the environment for online payment acceptance among major
retailers in Argentina. The chapter begins by quantifying the online acceptance rate of payment
cards, online accounts, mobile payments, direct bank transfers and other online payment means
before comparing the rates for each of these payment types across ten retailer categories. These
include consumer electronics, department stores and variety retailers, fashion brands, health and
beauty chains, and supermarket / hypermarket brands selling online.
4 - 14: chapters for all other countries are structured along similar lines to that for Argentina.

What are the key features of the research?
Key features of this report include:
• definitive coverage of the involvement in online payment acceptance of over 1,400 major retail
brands in 12 countries across North and Latin America, 55.2% of which have set up an online
shopping facility;
• coverage of 30 different payment card brands accepted online: which card brands are strong in
which countries and with which retailers do they collaborate?
• identification of 17 online account providers in addition to PayPal: which operate in more than one
territory and which offer significant competition to the market leader in particular countries?
• identification of mobile payment products that are accepted online such as Brazil's Oi Paggo: in
which countries has this emerging payment means made the greatest headway?
• analysis of direct bank transfers, payment on delivery (COD) and wire transfers as online payment
means: in which retailer categories are these most likely to be accepted for online payments?

How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:
• gain rapid access to a unique pan-American source of intelligence covering virtually all significant
retail brands across an extremely wide range of geographies;
• understand the degree to which online accounts, mobile payments, direct bank transfers and
other online payment types rival payment cards as a means of paying for goods online;
• appreciate in which countries and retailer categories each of these kinds of online payment enjoy
greatest acceptance among major retailers;
• monitor the activity of key national and international competitors in the online payment sector
including Amazon, American Express, Google, MasterCard, MercadoPago, PayPal, PayU, Visa and
Western Union;
• benefit from a comprehensive overview of the environment for retailer online payment acceptance
in North and Latin America, allowing you to plan for likely future scenarios in this sector.

© Finaccord Ltd., 2014
Retailer Type Distribution model Country Product type Product Partner(s)
accepted?
Sport 78 Sporting goods Mixed Argentina Online account Yes Pago Fácil
Sport Line Sporting goods Mixed Argentina Online account Yes MercadoPago
Telgomax DIY / furniture / home Online only Argentina Online account Yes MercadoPago, Pago Fácil, Rapipago
The Coffee Store Speciality Mixed Argentina Online account Yes MercadoPago, Pago Fácil, Rapipago
Tienda Más Chicos Fashion Online only Argentina Online account Yes Pago Fácil, PayPal, Rapipago
11
How can the PartnerBASE™ be used?
Filter by type
of retailer
Choose product type
Look up
specific retailers
Filter by
country
Select distribution
model
Identify partners

Who can use the research?
1. Payment card brands: this study is an up-to-date and comprehensive source of information
about online payment acceptance among major retailers in 12 countries and represents an
indispensable guide to the involvement in this area of close to 800 retail brands that allow
customers to shop online;
2. Providers of other online payment means: online accounts and mobile payments represent a
fast-growing alternative to long-established payment products for consumers making
purchases from web-based retailers – this report examines the evolving environment for firms
providing solutions in these areas;
3. Retailers: online payment acceptance is an important consideration for numerous retail brands
in Europe but what types of online payment do they accept and with which payment providers
do they collaborate in this context?
4. Management consultancies: are you either assisting a retailer with its approach to online
payment acceptance or advising a provider of online payment products with respect to
partnership opportunities with major retail brands? This research will help you to evaluate the
options in retailer online payment acceptance, saving time and effort on researching the
subject yourself.

What are some of the key findings?
1. Among major retail brands in North and Latin America, those
in Brazil and the US are most likely to accept online payments
Source: Finaccord PartnerBASE
0% 20% 40% 60% 80% 100%
% of major retailers accepting any kind of online payment
54.1%
71.1%
41.0%
56.5%
48.1%
26.5%
28.3%
51.8%
33.3%
27.7%
35.7%
65.3%
55.2%
Argentina
Brazil
Canada
Chile
Colombia
Costa Rica
Ecuador
Mexico
Paraguay
Peru
Uruguay
US
Total

What are some of the key findings? (cont.)
2. In Chile, major international payment card brands
face some online competition from local networks
0% 20% 40% 60% 80% 100%
84.2%
84.2%
84.2%
76.3%
52.6%
50.0%
13.2%
7.9%
5.3%
91.4%
91.4%
91.4%
80.7%
41.7%
61.2%
21.1%
16.9%
12.0%
Visa
MasterCard
Diners Club
American Express
Magna
Redcompra
Private
CMR
Cencosud
Unweighted and weighted online acceptance rates
among major retailers of payment card networks

3. By retailer category, direct bank transfers achieve the highest rate of acceptance
in North and Latin America among online consumer electronics brands
0% 20% 40% 60% 80% 100%
Books and media
Consumer electronics
Department store / variety
DIY / furniture / home
Fashion
Fuel
Health and beauty
Speciality
Sporting goods
Supermarket / hypermarket
% of major retailers accepting any kind of online payment
27.8%
31.6%
25.2%
7.5%
10.7%
n/a
6.8%
10.3%
14.5%
8.3%

4. Key findings from the executive summary include:
• across retail brands selling online, 93.7% accepted payment cards making this the most popular
online payment means, followed by online accounts (43.1%), other online payment types such as
payment on delivery (COD) or wire transfer (22.3%), direct bank transfers (17.6%), and mobile
payments (1.0%);
• the highest acceptance rates among online retail brands for online accounts (such as PayPal)
were visible in Argentina, Chile and the US at a respective 67.9%, 61.5% and 52.0% of those
investigated, although they were not accepted at all by online retailers in Paraguay;
• as regards the alternative online payment types identified, the high acceptance rate for Brazil
(which reached 86.0%) was due to that country's use of Boleto Bancário ('Banking ticket'), a
payment method generating an instant invoice due in a short period of time, usually within 24
hours, and payable online as well as through multiple physical locations;
• otherwise, 4.0% of online retailers in the region allowed payments to be collected at the point of
delivery (COD) while 1.7% accepted payments through wire transfer (including through Western
Union's WU Pay retail payment system).

What is the cost and format?
Retailer Online Payment Acceptance in North and Latin America is available as a standard PDF
document. The PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs
for this research set and selected other comparable, international titles are as follows:
* For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For
a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,
if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.
Retailer Online Payment Acceptance in North and Latin America GBP 1,295
Global Retailer Consumer Finance and Banking GBP 2,495
Global Retailer Insurance and Assistance GBP 2,495
Global Retailer Online Payment Acceptance GBP 3,495
Global Retailer Payment, Gift and Loyalty Cards GBP 3,495
Retailer Consumer Finance and Banking in the Asia-Pacific Region GBP 995
Retailer Consumer Finance and Banking in Europe GBP 1,295
Retailer Consumer Finance and Banking in North and Latin America GBP 995
Retailer Insurance and Assistance in the Asia-Pacific Region GBP 995
Retailer Insurance and Assistance in Europe GBP 1,295
Retailer Insurance and Assistance in North and Latin America GBP 995
Retailer Online Payment Acceptance in the Asia-Pacific Region GBP 1,295
Retailer Online Payment Acceptance in Europe GBP 1,995
Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region GBP 1,295
Retailer Payment, Gift and Loyalty Cards in Europe GBP 1,995
Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295

What other reports are available?
Australia GBP 795 France GBP 795 Malaysia GBP 795 South Korea GBP 795
Brazil GBP 795 Germany GBP 795 Mexico GBP 795 Spain GBP 795
Canada GBP 795 India GBP 795 Poland GBP 795 Turkey GBP 795
Chile GBP 795 Italy GBP 795 Russia GBP 795 UK GBP 795
China GBP 795 Japan GBP 795 South Africa GBP 795 USA GBP 795
Retailer Payments, Banking, Insurance and Assistance in...
A variety of country-specific reports and associated PartnerBASE™ datasets about retailer
payments, banking, insurance and assistance are also available from Finaccord, as listed below.
These are based in part upon the same research programs as the multi-country titles but focus
instead on particular countries.
* The same notes apply here as on the previous page

How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available at
http://www.finaccord.com/order_global_rfsr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable
Please allow up to one working day for the delivery of electronic copy by e-mail.
* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered
VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.

Retailer Online Payment Acceptance in North and Latin America

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