February 17, 2020
Online Payments and Ecommerce in Brazil| Biassa | Carlos Monteiro interviews Marcelo Coelho

Online Payments and Ecommerce in Brazil| Biassa | Carlos Monteiro interviews Marcelo Coelho


Hello everyone, This is Carlos Monteiro from denmarkbrazil.com and today we are going to have Marcelo Coelho Marcelo is the head director of a company called Mercado Pago and Mercado Pago is an online payment platform Mercado Pago was born from a firm called Mercado Livre and Mercado Livre is a company similar to EBAY, but in LATAM Marcelo will be sharing his view on The E-commerce in Brazil, the patterns of consumption of the New Middle Class and what is missing in Brazil in term of assortment specially on the retail side I belive this is a very interesting interview, with a lot of valuable knowledge which I believe you could gain a lot from watching it. So I hope to be hearing your comments soon 🙂 Thank you very much and enjoy this new video, bye! My name is Marcelo Coelho I’m the head of Mercado Pago in Brazil Mercado Pago is an online payment platform that enables the E-commerce transactions in Brazil I believe Brazil is living a miracle for the first time in the Brazilian history and what I’m talking about only happens one time in the history of a country the largest share of Brazilians today, are economically active this, demographic bonus, which contributes for us to have so much consumers creates something magnificent, in other words we are seeing an explosion in the consumption in the Brazilian society furthermore I’d say that there is a revolution in the cultural patterns going on …today for the first time in Brazilian history the largest share of the economically active population are part of middle class people therefore, priorities change so now the priorities of Brazilians aren’t the same as a they were a generation ago priorities are just the same as anywhere else in the world Health, Education and Safety As the population demmands for more education as the population becomes more educated, and there is still a long way to go, ..the population consumes more cultural products and services for instance, events, we have never seen here so many international events being produced and consumed as we are seeing now for instance,” Rock and Rio” had abandoned Brazil for several years and it was happening in Europe and now has come back to Brazil. Also several international concerts( and we have to consider the international crisis) that my generation of adolescents could not see in the stadiums and concert houses and today are happening on a weekly or even daily basis in Brazil so we consume more culture we consume more products, transportation, safety I can say that we are living an explosion of qualitative consumption within the Brazilian society and this is something quite new for us I was shortsighted for some time, to understand and comprehend who this new middle class was and since the year of 2003, this middle class was called” low income population” and from the years of 2006 /2007 this middle class started to gain another name, and became the so called C Class or “Classe C” and I can say that this middle class has been changing a lot so, today it’s become normal in Brazil to call the middle class “Class C” and what they consume is Safety, health and education and this is what they demmand quality transportation, as transportation is directly associated to safety as well The Class C consumes culture we’ve never seen so much tickets being sold for concerts The Class C, also consumes loads of tourism we’ve never seen so much success in the online travel agencies in Brazil This new middle class consumes novelties, the newest and most modern things in terms of technology this new middle class consumes what the global middle class consumes of course that the income is lower if compared to developed countries the new middle class consumes less but as the middle class is very big in Brazil it represents a lot I’d say it’s a spectacular moment Brazil is as they say is the “flavour of the hour” or the hill to be climbed all multinational E-commerce firms want the Brazilian consumers for several reasons one of the reasons is because some countries are living an economic recession another reason, preserving due proportions, Brazil while a society, lives an expansion in terms of consumption all these reasons when put together makes that all online companies more and more pursue to have their payments done in local currency Brazilian Reales In fact this is a reality… all international E-commerce players have learnt this lesson long ago every single citizen all over the globe likes to purchase using his local currency so all companies all over the globe pursue payments in Brazil, using local currency, these firms have also learnt that 80% of the Brazilian credit cards are Valid Only in Brazil, even if Mastercard or Visa this is a cultural trait of Brazil and on top of this in Brazil you can buy and pay in several installments, without interest rate This sometimes is a tricky concept to be explained but people in Brazil for not being used to save money Brazilians are not used to save money it is a common practice to buy and pay in several installments and this sort of payment is the wining flagship at Mercado Pago We have been now for 10 years providing online payments in Brazil so, we’ve ran around this track at least 10x this means that we understand very well how the online payments and the online ecosystem works in Brazil Furthermore, we have 90 million unique customers certified and active in our platform Carlos: I think this is a very important point as Mercado Pago was born from Mercado Livre Marcelo: Mercado Pago was born within Mercado Livre Mercado Livre has today 14 years old, it was born in 1999, and Mercado Pago was only born in 2004 in January of 2014 we are completing 10 years and in our story of 10 years of Mercado Pago, A small part of this story inside Mercado Livre and since 2010 in Brazil inside and outside Mercado Livre ( Mercado Livre is a Market Place, right. It is a website where you can buy everything) we have conquered 90 million unique customers. We have also conquered their cards registered in our platform according the international certificates PCI and Sarbanes Oxley Mercado Livre and Mercado Pago are companies listed atNASDAQ in New York under the ticker Meli and for the 90 million consumers we can provide exclusive and special promotions communicating very special partnerships This week for instance, we’ve just made a deal with a huge online wine retailer and for this website, we will be advertising a huge christmas campaing not only providing exlcusive benefits, for these customers registered in our platform as also giving to the website special discounts given by Mercado Pago I’d say that these are some of the competitive advantages of Mercado Pago not to mention the usability and capilarity of our platform We’re present in more than 150.000 websites across LATAM Carlos: Is this world wide or Latam? Marcelo: No this numbers are for LATAM Carlos: okay, and how about Brazil? Marcelo: We say that from all numbers, 50% are in Brazil, so from all websites 50% are in Brazil, from all customers 50% are in Brazil I’d say that the main challenge is growth. E-commerce in Brazil and Mercado Pago in Brazil are growing at a Chinese pace so we’ve been growing at double digits rates, what calls the attention of many international online platforms that want to work with us and this brings an exponetial growth for our operation, which is an online operation so the main challenge I see, isnt’t for Mercado Pago, but rather, for the Brazilian society. Mercado Pago while a tool, that enables online payments has to receive a payment with a guarantee from one party, and deliver this payment with guarantee to another party receive this payment from a buyer and deliver the same payment to a seller. and this we do with majesty for more than 10 years however, what we need in Brazil is assortment, we need major providers of products and services to supply this need of the Brazilian consumer market Well from fashion itens for an individual …It doens’t have to be an executive any person, working at an office, with a busy life perhaps wants to have a pair of trousers that is “iron free” These trousers, or textiles aren’t avaiable in Brazil yet another example, people might one buy data and archive hosting services, to make backups for their computers.There are still very few assortment and variety and therefore price offer, of companies offering this type of product in Brazil So variety and competition create better quality and lower prices and this is what Brazilians are looking for At one click be able to buy a pair of trousers in any website at one click be able to buy data and archive hosting for your computer Brazilians have learnt well how to use tecnology, as we are overtime becoming more educated as education grows, language proficiency improves, Brazilians are more and more able to buy things in international website and or use tools to translate websites of languages they are not familiar with Here in Brazil, to find a product from Denmark, perhaps if you live exclusively in the city of São Paulo ONCE A YEARi it s held an elitist trade fair, of extremely high prices that you can “visit”, and say visit because this trade fair doesnt’ really suit the reality of the majority of the Brazilian population and there you can find these products, which are products of standard consumption in Denmark so to have access to products, to have access to concerts, books, e-books, culture, entertainment, eventually online courses online courses are becoming every day more and more common Huge North American Institutions are now offering online courses, some are free, some are paid and to have these possibilities at one click, are the major challenges for the Brazilian society I’d like to say we are open. The Brazilian market is keen on receiving and buying good products and services and Mercado Pago has it’s doors opened if any person wants to contact me please just send an email at [email protected] to understand better what Mercado Pago is, eventually offer Mercado Pago for any website from Denmark, Learn how we do business in Brazil, so anything that is at our reach and that we can help Denmark with in terms of bringing assortment, variety of high added value for the Brazilian society, we really want to help and make he difference and therefore help you to make your businesses grow Subtitles by the Amara.org community

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