65 Percent of Mexico’s Online Shoppers Buy Abroad: PayPalBy Andrea Villar | Fri, 07/09/2021 - 13:12
Not only did the pandemic spark a local e-commerce boom in Mexico but more than half of shoppers are also making purchases outside the country. Nationwide, 65 percent of digital shoppers made at least one purchase abroad, while 83 percent did so via mobile phone during 2020, according to PayPal's 2021 Borderless Commerce Report. In addition, more than 60 percent of digital shoppers plan to further increase their online shopping during the 2021-2022 period. “This positioned Mexico as the second largest e-commerce market in Latin America, after Brazil, and as a country with high potential in cross-border mobile commerce,” the report notes.
According to the report, 48 percent of shoppers use PayPal as their preferred method of payment due to the “safety and security" offered by the platform. Debit cards are used by 36 percent of users followed by credit cards with 34 percent. “We witnessed globally how during 2020 people shopped more frequently on international sites, attracted by competitive prices and product diversity,” said in a statement Jesús Padilla, Marketing Director of PayPal Mexico. “Shopping on international sites is becoming easier and more secure.” Despite an increased attraction to new payment technologies, the report highlights users' growing vigilance to data privacy and online fraud, particularly in more cash-oriented markets like Japan and Mexico.
Best Prices, Main Driver
Finding lower prices in international marketplaces is the main driver for 49 percent of shoppers, the study revealed. Behind that, 45 percent report that they do it for the possibility of finding new and authentic products, followed by 40 percent who do it to have access to items that cannot be found so easily in Mexico. Other shoppers find that language is a decisive factor, with 20 percent of shoppers believing that if customer service was not available in Spanish, they would not make a purchase. Likewise, location plays a crucial role, with the US being the top country of choice for 66 percent of Mexicans looking to buy abroad, followed by China with 44 percent and Spain with 13 percent. The categories most frequently purchased are fashion with 42 percent, electronics with 23 percent and cosmetics with 20 percent.
Digital transformation across all industries and the boost it has given to users has led to a 28 percent increase in internet penetration globally. According to data from Mexico’s Central Bank (Banxico), 86 percent of Mexicans now prefer to pay with cash, compared to 93 percent before the pandemic.