Globalcollect Mexico Country Factsheet

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Mexico increased 30% in e-commerce value. At the end of 2011, the value of e-commerce in Mexico will reach $47 billion pesos ($3.6 billion dollars), representing an increase of 30% compared to 2010, according to the most recent study by the Mexican Internet Association (Amipci).
Fast Facts:
- Mexico is the fastest growing and second largest technology market in Latin America next to Brazil
- Broadband, especially ADSL, is one of the fastest growing telecom markets in Mexico
- 31% of internet shoppers spent between $30 and $75 per transaction, while 30% spent between $75 and $225 per transaction
- Diversity of online payment methods growing - domestic and international players entering the payment market
spent between $75 and $225 per transaction Diversity of online payment methods growing - domestic and international players entering the payment market

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Globalcollect Mexico Country Factsheet

  1. 1. Mexico30% increase in e-commerce value General statistics 2011At the end of 2011, the value of e-commerce in Population 113,724,226Mexico will reach $47 billion pesos ($3.6 billion dollars), Currency Mexican Peso (MXN)representing an increase of 30% compared to 2010,according to the most recent study by the Mexican Major language SpanishInternet Association (Amipci). Capital Mexico City GDP per capita $13,900Fast Facts Mexico is the fastest growing and second largest technology market in Latin America next to Brazil Internet usage 2010/2011 Broadband, especially ADSL, is one of the fastest Internet population 34,900,000 growing telecom markets in Mexico Internet penetration 31% 31% of internet shoppers spent between e-commerce volume $3,600,000,000 $30 and $75 per transaction, while 30% spent between $75 and $225 per transaction Diversity of online payment methods growing - domestic and international players entering the payment marketE-commerce DataRetail Sites May 2011 Reach Top Retail Sites 80 Wal-Mart Paguito.com 60 Terra Mexico Brazil Bing Ciao % 40 Hewlett Packard 20 Mexico Ticketmaster BuscaPe.com 0 Argentina Apple.com Amazon Sites Colombia MercadoLibre 0 10 % 20 30Internet Audience Online Payment Preference Visa 11% 5% 12% 1% MasterCard 15-24 9% 40% 25-34 Other 20% 5% 54% 35-44 19% 24% COD 45-54 Bank Transfer 55+ American Express
  2. 2. Quick OverviewOnline retail still has plenty of growth potentialThe Mexican E-commerce market still has a lot of maturing to Average time online by countrydo, in terms of penetration and the number of minutes (Hours)spent online. As a result, most retail subcategories have a 30lower reach than the global average, except for computerhardware and ticket sales. 28Top online purchase products 26Online purchase intent in Mexico is evenly divided among thetop eight products and services: books (30%), electronic 24equipment (25%), tours/hotel reservations (24%) event tickets Mexico Colombia Brazil Argentinaand music (22%), computer hardware (21%) clothing andvideo/dvd’s/games (18%).Mexican users do trust foreign sitesMexican users don’t trust their local sites more than they trustforeign ones, in contrast with more advanced markets suchas Argentina and Brazil. At the moment, the most popular retail Top Online Purchase Productsdestination by far, is the Argentine website MercadoLibre. (%)Internet Fraud increasesRegarding reports of companies Symantec and McAfee Labs, Clothing & Mediaabout 42% of public and private companies as well as Computer hardwarefinancial institutions have an average of 100 daily attacks from Event ticketscyber criminals, so that businesses and users of the network are Tours/hotelincreasingly vulnerable to this type of crime. ElectronicsMexican users slightly young BooksMexican Internet users are split evenly by gender, 51% men 0 10 20 30 40and 49% women. The Mexican user is slightly young: 64% ofthe Mexican online population is under 35 but has significantpurchasing power. Mexicans spend 25.8 hours a monthonline, very close to major markets like Colombia (26.6 hours),Brazil (27 hours) and Argentina (28.7 hours). Reach of Key CategoriesAccessing internet more popular than watching TV (%)Mexican Internet users spend double the amount of time News/Informationonline than they do watching TV, whether free TV or cable. Retail CommunityDesktop and laptops are the most common way for them to Blogsconnect, but in 2010 30% of Mexican users went online via Instant Messengerscell phones and 14% went online with smart phones. Directories/Resources e-mailSocial Media on top MultimediaSocial networks is the main category of websites accessed by Social Networking Search/NavigationMexican users, with a 90 percent reach. This is well above theglobal average and in line with Latin America’s average. 0 50 100Payment Preference: installments are often usedThere are a number of alternative payment options for Latin Americans. In Mexico, transactions arecash or debit based, offline bank transfers and the prepaid Todito Card are also popular. However,due to the lack of purchasing power of the majority of the population many purchases are donevia installments (‘cuotas’). Often even relatively small amounts are paid for via a microcredit facilitywhich covers multiple installments. Installments are offered in various parts of the retail sector.RepatriationRepatriation is difficult, but there are no withholding taxes for merchants on collected money.
  3. 3. GlobalCollect’s payments solutions Global Collect’s Portfolio Mexico International Cards GlobalCollect supports Visa Online and MasterCard Local cards GlobalCollect supports the local AMEX card Bank transfer GlobalCollect supports Local bank transfers Check GlobalCollect supports check processing e-Wallets GlobalCollect supports PayPal, Moneybookers Cash Consumers can pay via Western Union Invoicing GlobalCollect can process invoicing in Mexico Mobile The support for mobile is on the future’s list of GlobalCollectMexican payment products spotlight In Mexico most online payments (about 65-70%) are paid with credit card. The trend in Mexico is to issue cards that target a specific demographic like women, soccer aficionado’s, children (debit cards) and so on. Especially large banks like Banorte and Banamex take this approach. The usage of prepaid cards for online payments is showing growth in specific verticals. Originally designed to prepay for internet access and long distance phone calls, they can now also be used to pay online. Todito is one of the best known. The potential is also attracting international prepaid cards who plan to launch in Mexico in the near future. Perhaps the biggest trend in payments in general and online payments especially is to make payments in convenience stores like 7-Eleven, OXXO and Elektra. While shopping people pay their utility bill, online purchase and upload their prepaid phone. They pay directly or in installments. For convenience stores processing payments is quickly becoming a competitive advantage as well as a moneymaker by providing (micro)credit.A tailored solutionOutsourcing currency conversion services,combined with a remittance currency set-uptailored to your needs, allows merchants tofocus on their core business activities andrealize organizational savings.About GlobalCollectGlobalCollect is the worlds premier PaymentService Provider of local e-payment solutionsfor international Customer Not-Present (CNP)channels. A pioneer of global paymentprocessing with more than 15 years ofexperience as a full service provider, we havea proven track record in helping our merchantsrealize their global ambitions and expand theireCommerce activities across the world.Sourceswww.comscore.com - State of the Internet in MexicoInnopay Study - Online payments 2011www.mexicanbusinessweb.com - Internet users spend more online (11-10-’11)www.mexicanbusinessweb.com - E-commerce increased by 30% (06/11/2011)hhtp://newsletter.usmediaconsulting.com - Keys to Understanding Mexico’s Online Market (2-10-11)http://thenextweb.com - internet-in-mexico-starting-a-long-journey (31-08-’11) Global Trends in Online Shopping - A Nielsen Global Consumer Report Version number: 3.1

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