Visa Latin America 2005 Online Volume Hits US$2 Billion

“The increase in e-commerce transactions processed with Visa branded products clearly shows that consumers recognize our products are the most efficient and secure way to pay in the virtual world,” said Alejandro Estrada, vice president of Emerging Technologies, Visa International Latin America and Caribbean Region, “e-commerce is rapidly expanding in the region. According to comScore research, 91% of online transactions are made with cards; a total of 53 percent of these transactions correspond to Visa branded products”.

For Visa International Latin America and Caribbean region, Brazil and Mexico together represent more than half of the total sales volume. Brazil leads the region and countries such as Venezuela and Chile have experienced the greatest growth within the last year with 185% and 100% respectively.

Additionally, the company reports that a great amount of Internet transactions in the region were conducted through international e-tailers for the purchase of travel - related items such as airline tickets; electronic products such as computers and books. Local online merchants also saw an important increase in e-commerce sales focused on categories such as airlines, government services and education. The penetration of e-Commerce in new retail segments and consumer’s increased confidence has boosted the average ticket value to US$ 60, an 18% increment in the last year.

Internet penetration remains one of the key drivers for the increase of e-commerce in the region. The total number of online consumers in the region is almost 60 million, representing an increase of more than 300 percent since 2000 according to ExitoExportador.com. Innovation in security is another significant factor for the growth of e-commerce during 2005. There is an increase in consumer confidence while conducting online transactions resulting from innovative security measures launched by governments, financial institutions, e-tailers and electronic payment systems.

Visa International, specifically, has taken decisive action to provide greater confidence and security to online shoppers with unique services such as Verified by Visa, which allows merchants to confirm the identity of cardholders using a personalized password during the online purchase process. In a matter of seconds, the cardholder’s bank validates the password and prevents the unauthorized use of their Visa card.

Currently, more than 70 Visa member banks in more than 14 countries in Latin America have implemented Verified by Visa, increasing penetration of authenticated transactions by more than 5 times in the last 2 years. Worldwide more than 100,000 merchants worldwide have adopted this program in order to authenticate consumers.