Navigating Payment Friction in Brazil's Mobile Shopping Landscape

Table of Contents

1. Key Highlights:
2. Introduction
3. The Mobile Shopping Surge in Brazil
4. Manual Data Entry: A Major Pain Point
5. Consumer Concerns About Data Security
6. The Merchant Perspective: Challenges and Opportunities
7. Building Trust: The Key to Reducing Payment Friction
8. The Future of Mobile Shopping in Brazil
9. FAQ

Key Highlights:

• Over 32% of Brazilian shoppers manually enter payment information for online purchases, far exceeding the global average of 21%.
• A staggering 99% of Brazilian consumers encounter some form of payment friction during transactions, with payment processing errors and declined payments as the main issues.
• To enhance growth, retailers must prioritize data security and consumer trust to encourage the adoption of stored payment credentials.

Introduction

Brazil has emerged as a significant player in the global mobile shopping arena, with its consumers demonstrating remarkable engagement in digital commerce. The 2025 Global Digital Shopping Index: Brazil Edition, commissioned by Visa Acceptance Solutions and analyzed by PYMNTS Intelligence, showcases that Brazilian shoppers are increasingly turning to mobile platforms for their retail needs. This trend, however, is marred by a troubling prevalence of payment friction, which poses significant challenges to both consumers and merchants. Understanding the dynamics of this friction is essential for retailers aiming to thrive in this burgeoning market.

The Mobile Shopping Surge in Brazil

Brazil's mobile shopping adoption is nothing short of impressive. According to recent findings, 61% of Brazilian consumers used their mobile devices for their latest retail transactions, whether online or in-store. This figure represents a notable increase of 10% since 2022, positioning Brazil among the top four nations globally for mobile shopping engagement. This trend is particularly striking when compared to traditional economies such as the United States and the United Kingdom, where mobile shopping has not seen the same exponential growth.

The rise in mobile shopping reflects a broader digital transformation within the Brazilian retail landscape. As consumers increasingly favor the convenience of mobile devices, retailers must adapt their strategies to meet these changing preferences. However, the transition to mobile commerce is not without its challenges.

Manual Data Entry: A Major Pain Point

Despite the surge in mobile shopping, a critical issue plaguing Brazilian consumers is the high reliance on manual data entry during online transactions. Approximately 32% of Brazilian shoppers report manually entering their payment details for online purchases—1.5 times higher than the global average of 21%. This reliance creates a bottleneck, leading to increased transaction times and heightened frustration among consumers.

The ramifications of this manual entry are significant. The 2025 Global Digital Shopping Index highlights that a staggering 99% of Brazilian consumers experienced some form of payment issue during their latest retail purchase. Payment processing errors were reported in 67% of these cases, while 63% of consumers faced declined payments. In stark contrast to the global average, where approximately 61% of transactions proceed without issues, only 1.5% of Brazilian shoppers reported a completely seamless purchase experience.

This friction not only hampers the consumer experience but also presents a considerable hurdle for merchants looking to capitalize on Brazil's mobile-first market. The challenge is further exacerbated by the limited adoption of stored payment credentials, with only 33% of Brazilian consumers utilizing this feature for their latest online purchase—well below the survey-wide average of 54%.

Consumer Concerns About Data Security

The reluctance of Brazilian consumers to store payment information online stems primarily from concerns regarding data security and privacy. Approximately 60% of respondents cited data security as their top barrier to using stored credentials. This concern is compounded by a lack of trust in merchants, with 30% of consumers expressing reservations about the reliability of retailers to safeguard their information.

Moreover, fears of unexpected recurring charges add another layer of hesitation, affecting 26% of consumers. These factors create a challenging environment for merchants, who must navigate consumer apprehension while also striving to enhance their payment systems.

The Merchant Perspective: Challenges and Opportunities

Brazilian merchants are acutely aware of the payment processing challenges their customers face. More than one-third of retailers express significant concern that their current payment systems will not meet future demands. Additionally, 70% of merchants harbor at least some worries about their payment capabilities.

To overcome these challenges, retailers must prioritize optimizing the payment process. Investing in technologies that enhance data security and privacy is crucial for building consumer trust and encouraging the use of stored payment credentials. Offering appealing and secure stored credential options can drastically improve the checkout experience, resulting in fewer abandoned carts and increased sales.

Partnerships with banks and third-party payment solution providers can also provide the necessary expertise and technology to navigate the complexities of payment processing. By embracing innovation and prioritizing customer-centric solutions, merchants can significantly reduce friction and enhance the overall shopping experience.

Building Trust: The Key to Reducing Payment Friction

As Brazilian consumers continue to adopt mobile shopping, building trust becomes paramount. Retailers must focus on transparent security practices, which can foster consumer confidence. This involves not only ensuring data protection but also communicating these efforts effectively to consumers.

To make stored payment options more attractive, merchants can implement features such as biometric authentication or multi-factor authentication, which enhance security while simplifying the checkout process. Educating consumers about the measures taken to protect their information can also alleviate fears and encourage the adoption of stored credentials.

Moreover, leveraging customer feedback to address pain points in the payment process can yield valuable insights. By actively listening to consumer concerns and adapting their payment systems accordingly, retailers can create a more seamless and trustworthy shopping experience.

The Future of Mobile Shopping in Brazil

The future of mobile shopping in Brazil is promising, yet fraught with challenges that must be addressed to unlock its full potential. The high rate of payment friction currently experienced by consumers presents both a significant obstacle and an opportunity for innovation.

As Brazilian consumers continue to embrace digital commerce, the onus is on merchants to evolve their payment processes. By prioritizing data security, enhancing user experience, and building consumer trust, retailers can position themselves to thrive in this dynamic landscape.

The ongoing evolution of mobile payment systems will undoubtedly shape the future of retail in Brazil. As technology continues to advance, the potential for a more streamlined, secure, and user-friendly shopping experience becomes increasingly attainable.

FAQ

Why is manual data entry a problem for Brazilian consumers?

Manual data entry is problematic because it is time-consuming and prone to errors, leading to payment processing issues and consumer frustration.

What percentage of Brazilian consumers experience payment issues?

According to recent research, 99% of Brazilian consumers reported experiencing some form of payment issue during their latest retail purchase.

How can merchants reduce payment friction?

Merchants can reduce payment friction by investing in technologies that enhance data security, simplifying the payment process, and promoting the use of stored payment credentials.

What are the main concerns of Brazilian consumers regarding stored payment credentials?

The primary concerns include data security, trust in merchants, and fears of unexpected recurring charges.

How does Brazil compare to other countries in mobile shopping adoption?

Brazil ranks among the top four countries globally in mobile shopping adoption, with 61% of consumers using mobile devices for their latest retail purchases. This figure has increased by 10% since 2022.