M-commerce has been slow to launch in Latin America, with a number of structural factors inhibiting its scale. Both merchants and consumers have yet to climb the m-commerce learning curve; it is estimated that in Brazil, by far the region’s most mature market, fewer than 5% of merchants have an m-commerce site, forcing mobile customers through a clumsy, non-optimized shopping experience. Card-on-file features are scarce, requiring users to enter in their 16-digit card number for each individual purchase. High speed Internet has expanded impressively in recent years but is still limited; 50% of mobile connections are still covered by 2G1,2. As a result, m-commerce represents less than 10% of total e-commerce sales region wide.
But the ground is being laid for swift m-commerce growth, due, if nothing else, to the rapid expansion of smartphone penetration and 4G coverage. As a result, mobile commerce sales will grow 40%-60%, depending on the market, in 2016.
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