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PagoEfectivo: cash-based online payment method in Peru 

Unlock the potential of e-commerce in one of LATAM’s biggest markets

Peru is the fifth largest online market in Latin America, as well as the country with the highest growth in internet users in the region. At the same time, there is still a large percentage of unbanked citizens: the adult population with bank accounts reached 47.9% in 2019. When choosing your payment mix for your website in Peru, it is crucial to offer a cash-based method. And one of the largest in the country is PagoEfectivo

The percentage of online individuals increased from 61% in 2016 to 72% in 2019, but the habit of buying online is yet to gain ground. There are three main reasons: local shoppers worry about fraud, they don’t want to share their personal data online, or they don’t own a credit card. 

Still, e-commerce is a promising market in Peru. According to the Peruvian Chamber of Electronic Commerce, e-commerce business in Peru grew 198% since 2017. It is essential to offer a cash-based option at your checkout to reach more online shoppers.

The potential of PagoEfectivo and e-commerce in Peru

The key driver for e-commerce growth in this South American country is the change in consumer behaviour: 90% of connected Peruvian adults have made online purchases at least once in their lives. There are over 6 million online shoppers in Peru, which made the revenue of e-commerce reach USD 4 billion in 2019. Of this total, USD 1 billion was spent on cross-border purchases.

If in 2015, cross-border transactions represented 14% of online sales, after four years, that number scaled to 25%.

Peru is a young country, where 55% of the population is 30 and younger, an age group that tends to shop online actively. The demographic profile reflects the growing preference for mobile commerce; now at 42%. 

What is PagoEfectivo?

Although credit cards still represent 63% of online consumers prefer to pay with credit cards, the second most popular method is cash (13%).

PagoEfectivo is a cash-based payment solution that works in a simple, fast and safe way. It gives your unbanked local shoppers (or those who don’t own a credit card) freedom to decide how to pay: either in the comfort of their homes or in one of the different 70,000 affiliated physical stores in Peru. 

It works in a very straightforward way:

1 – Client chooses product on your e-commerce and heads to checkout;

2 – There they find the option to pay with PagoEfectivo;

3 – A payment code (CIP Code) is generated and sent to the shopper’s email;

4 – With that code, the consumer can pay through their online banking account or with cash at affiliated stores.

If they prefer, clients can also generate the CIP code and pay online from their online home banking account.

Very simple. And so is the integration. If you want to offer PagoEfectivo on your online store, get in touch with your account manager, and they can get you started. PrimeiroPay was one of the first PSPs to integrate the payment method to Expand your Proximity to Peruvian shopper. All in one contract and one integration.

If you still don’t work with us, there is a Business Developer waiting for your contact.


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