July 9, 2020

Increase the use and security of electronic commerce in Latin America

E-commerce in Latin America is booming, as evidenced by 126 million users in 2016 to 156 million today and 40,000 million to 80,000 million dollars in sales in the same period, according to a study commissioned by Mastercard.

In order to meet the needs and expectations of Internet shoppers in the region, Mastercard conducted a study with Kantar, a leading research company, in Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Peru and Puerto Rico, whose results were presented this Tuesday.

Among the determining factors for this growth is the greater purchasing power that the millennials are having (people between 20-40 years old), who represent 30% of the population of Latin America and the Caribbean.

"However," Jorge Arbesú, vice president of Cyber ​​Security and Intelligence, Mastercard LAC (Latin America and the Caribbean), told Efe, "we have now seen significant growth beyond that generation, among people aged 18 to 50 years."

Latin America, says Arbesú, is one of the fastest growing regions in this regard.

And at the forefront within this region are countries such as Brazil, Mexico and Uruguay: "the three are part of the countries we call digital 6, which are the most digitally advanced, these countries tend to further progress in terms of adoption" of technology.

Chile is also surprised by its tendency to embrace electronic commerce.

According to the Santiago Chamber of Commerce, "there are parts of the year that 50% of transactions are digital, although it is a country that has to make progress in terms of digital terms has those interesting peaks."

The study also shows that there is a widespread feeling that electronic payments are safe.

"The fact that a country like Brazil has said that its main concern is the cost of shipping means that they feel safe. That always ends up being a satisfaction, because it means that the ecosystem begins to feel that way."

"Part of the group that makes transactions today, six out of ten people, don't even talk about issues like security. They would like to feel more secure, but they don't talk about it as a topic."

However, the results of the study pose a very important challenge: "That small part of 30 to 40% who are not shopping so frequently, do call to feel more secure."

"The challenge – adds Arbesú – is to attract more users to the ecosystem, generating greater confidence."

"A key message is that 'e-commerce' is very safe for the scale we have today. The challenge we are launching as a network on all fronts we talk to, our issuing partners, our business partners and even the government centers we talk to is that for the next 2 to 3 years we have a lot to do. "

"Today the photo is safe, we want the photo of the future to be much safer," he added.

To achieve this, MasterCard outlines the future of the security of its transactions through two methods of cybersecurity, tokenization and authentication.

Tokenization technology helps issuers and merchants secure their customers' data by replacing them with an alternate number ("token").

This consists of 16 digits that emulate the real card number and can only be used once.

In the case of a fraudulent transaction, the scammers would only have access to the token instead of the entire consumer payment data, reducing the likelihood of fraud.

For their part, authentication technologies allow merchants and banks to ensure that online shoppers are who they say they are, through smart and biometric technology, similar to the ones used in face recognition at immigration points. from some countries

Tokenization and authentication, says the MasterCard manager, are the solution to the great challenges of tomorrow and that is why they are a key part of this forum.

"The first step is habilitation. That is to say that all sides have to be ready to tokenize and authenticate. That is the work we have done on Mastercard in 2019 and we will do in early 2020. What we are going to start doing from there is to start the use "

Arbesú says that, thanks to the speed of new technologies, this process will not take long: "It took ten years to migrate from the magnetic strip to the chip, but now this could only take a year and a half to two."

. (tagsToTranslate) Increases (t) electronic (t) security (t) America (t) Latina

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