Black Friday is Brazil’s second most important event in the ecommerce realm in terms of revenue – in 2021, online sales increased by 5%, generating nearly BRL 4.2 billion.
This year, according to research, 50% of online shoppers affirmed their intention to shop during Black Friday. Another incentive is the World Cup. 56% of respondents said they would purchase an item related to the championship during Black Friday.
In other words, Black Friday is an excellent opportunity for cross-border merchants to enter the Brazilian market.
Moreover, payment options are a must. The broader the number of alternative payment methods, the better and higher the chances of conversion. That’s because customers prefer alternative payment options (not only in Brazil but also worldwide). We’ve listed the most popular payment solutions Brazilians will opt for this Black Friday.
Payment Trends on Black Friday
Pix is a Brazilian phenomenon in the digital payment industry. Developed by the Central Bank of Brazil, Pix already represents 13% of consumer preference in online purchases, behind only the credit card (62%).
The benefits are there for both merchants and online shoppers. Pix facilitates automation and payment reconciliation, reducing friction and promoting fluid checkout from the receiver side. It works instantly – in less than 10 seconds, 24 hours a day, seven days a week, including weekends and holidays.
The credit card still leads the podium as Brazilians’ favorite payment resource. In Brazil, a credit card allows payment in installments of up to 18 payments in some cases, increasing sales and fostering impulse purchases.
Another option is to offer split payment and allow shoppers to use two different cards to pay for one transaction, or a card and Pix or boleto bancario.
Due to Pix’s tremendous success, there are questions about how much longer the boleto bancário will still be used and chosen as one of the main payment options. Pix is more effective, with faster payment confirmation and less friction.
Despite that, 38% of Brazilians have no bank account and thus have no access to Pix, which means that the boleto is the online payment alternative that serves the unbanked.
PagBrasil offers accelerated automated payment confirmation. While bank boleto processing requires the merchant to import the data using archaic methods that usually require manual procedures to confirm the payments, Boleto Flash® is automatically confirmed in under two hours on the same day.
Payment links are very popular in Brazil as an alternative payment method. Small businesses, entrepreneurs, and ecommerce shops are adopting the payment link as a secondary payment source and using popular tools such as Instagram, Facebook, WhatsApp, email and phone to sell through multiple channels.
Through payment links, merchants can offer their customers various options such as credit and debit card, Pix, or digital wallets.
Brazil’s most popular digital wallets are Google Pay, Apple Pay, and Samsung Pay. According to Opinion Box, digital wallets have increased over the past 12 months by 62%.
User experience plays an important role
If you want to get the best out of this Black Friday and maximize your sales, there are a few tools and solutions you should have in place. We’ve listed a few of them:
The traditional checkout redirects the buyer to a payment intermediary’s page, taking the consumer from the merchant’s website to an external URL. On the flip side, with the direct checkout, the buyer stays on the merchant’s website and the URL domain remains unaltered while the buyer completes all payment steps.
With direct checkout, the online store communicates with a payment processor’s API and shows the results to the buyers within its own front end.
In other words, during such an event as Black Friday, where the numbers of scams and fraud are likely to scale, it is crucial to show your shopper they can trust you.
Since marketplaces are on the rise and are a great strategy to leverage sales, a payout solution can offer many benefits. Not only does it simplify the payment flow, but it also avoids double taxation.
The payment flow can be controlled in two ways. One is by automatic cycles, based on rules defined by the platform – such as selecting a split percentage for each recipient.
The other is by instruction – for instance, after the customer has received the product or the service has been successfully provided.
Alternative payment methods
We have discussed the importance of a diverse payment method offered at the checkout several times in our blog. In Brazil, buyers are twice as likely to shop for a specific product with a merchant who offers the payment method of their choice.
Especially during Black Friday, in which people are prone to impulse buying, if there are any hurdles throughout the payment experience, including a lack of alternative payment methods, buyers won’t think twice about reaching out to the competition if they provide their preferred payment method.
PagBrasil offers the widest set of local payment methods, including Pix, Boleto Flash®, Débito Flash™, with solutions specifically designed for the Brazilian market. Get started today! Reach out to us and discover more!