How Payment Methods Influence Digital Goods Sales in Brazil

The Digital Goods market is growing exponentially all over the world. In Brazil, it could be no different since it is one of the countries that spend the most time on the internet and uses it to conduct extensive research before actually making purchases, whether in e-commerce, online gaming, or educational content. Like every culture, Brazilians also have a particular consumption profile, like high demands, which includes the desire for agility, security, and an accelerated digitization. They consider various points before choosing their product, and one of them is the payment method offered by merchants.

Suppose the payment offer is described in another language, with values presented in foreign currency and taking a long time to process. In that case, the user will likely abandon their shopping cart. This is because Brazilians prefer to buy products where they understand perfectly what is described and exactly how much the purchase will cost.

It makes local currency one of the most critical aspects of the process, as well as paying in a familiar and local method that brings credibility and safety to the buyer. Therefore, offering local payment methods when selling digital goods will open the door to Brazilians, who will feel much more comfortable at the moment of purchase.

However, Brazil is a blue sea for your digital goods business to succeed. Understanding the audience is essential for this. By 2020, 49% of the Brazilian population had shopped online. But what is the profile of these buyers? We can state that it is a young public, an excellent sign for the digital market, since they are more familiar with technologies and, consequently, with online payment methods. According to a study by Statista, 66.8% of buyers are between 26 and 50 years old, representing generations Z, Y, and millennials.

In addition, consumers are willing to buy from international stores because they seek more competitive prices by nature. So, making local payment methods available for Brazil is an excellent opportunity for your company.

With that said, and understanding the importance of offering local payment methods and local currency to Brazilian consumers, we can highlight some of the main benefits of working with a local payment partner in Brazil:

Understanding the peculiarities of Brazilians’ consumer behaviour

Brazil is a large country, with multiple cultures spread across the states and different age groups. Each is at a different level of digitalisation. Millennials, for example, have followed the evolution of the internet and are therefore more familiar with digital payments than previous generations. However, in Brazil, a large part of the population of all ages already use digital payment methods, such as e-wallets, making the country the third largest market for e-wallets.

Another important fact is that payment methods are chosen according to the total amount of the purchase, like the installment payments, that allows the buyer to increase their purchase power, especially in larger value amounts. In other words, there are several cultural peculiarities that only a local partner will be able to understand and propose the best solutions.

The importance of offering local currency payments

As mentioned earlier, Brazilians prefer to make payments in Brazilian Real since it generates more confidence when purchasing by showing exactly how much it will cost without possible exchange rates. When the payment is made in foreign currency, the final value in Reais is only accurately known at the closing date of the card’s billing and can be considerably higher than first expected when the purchase was made.

In addition, having a local payment partner in Brazil ensures a larger market share by reaching the population that does not have an international credit card or is not familiar with other payment options nor the foreign exchange system, as well as the unbanked population. The currency conversion can generate many discomforts and lack of confidence, causing the user not to finalise his purchase.

Local payment methods is key


More than showing the value in local currency, offering a payment method that is familiar to the user creates a higher credibility and makes the buyer feel safer. Since Brazil has its own peculiarities when it comes to the banking system, it is highly recommended to work with a partner that will lead you through the methods and the preferences of the population.

For example, boleto bancário and credit cards account for 93% of online purchases, but the second differs when it comes to payment processing inside or outside the country. Only 20% of the population has access to international credit cards, making it essential for merchants to offer local credit cards methods.

Another important and growing method is PIX, that allows instant payments without taxes for clients and is getting more popular each day, already being used by 96 million people and highlighting the importance of accepting local payments.

Less bureaucracy and costs with cross-border sales

By relying on a local partner, bureaucracy is reduced and time is saved. More than that, a local partner will know how to deal with taxation, financial and legal systems to comply with country regulations and your company won’t need to have a local entity for that. This is an advantage to the merchant, by having full support in legal issues, local peculiarities and any doubts that they may have.

Digital Goods are growing in Brazil

The spending on entertainment apps had a 29.3% growth in the App Store year over year, reaching $5.3 billion. On Google Play, on the other hand, the same category registered an increase of 71.4% compared to 2019, moving $1.2 billion.

Brazilians have very well accepted digital goods, and the tendency will continue in the country’s taste even after the pandemic. A study by NewZoo stated that the online gaming market revenue in 2021 is expected to reach US$2.3 billion. For online courses, the numbers are also encouraging. According to Statista, 12% of the online population engaged in online courses in 2021.

It is clear that the digital goods market in Brazil is a huge opportunity, but needs attention and qualified partners to be leveraged by your business.

That is why you should count on BoaCompra, a company with over 15 years of experience in the Latin America region connecting international merchants to local payments and is an expert in handling complex cross-border transfers, including conversions, fees, and compliance requirements. Being part of PagSeguro, a disruptive provider of financial technology solutions in Brazil, extends our technological and financial resilience, driven by robust and consolidated infrastructure.

Learn more about our the potential, the trends, and the challenges of selling digital goods in Brazil and how to expand your business in our exclusive guide:

Guide: How to Sell Digital Goods in Brazil

Leave a Reply

Your email address will not be published. Required fields are marked *