Shift in Consumer Behavior: Moving from Cash to Digital Payments

The payment environment in Latin America has undergone significant changes due to the COVID-19 pandemic. These changes have led to the widespread adoption of cashless payment methods and a shift from offline to digital payment channels. Digital payments cover a wide range of transactions, including mobile payments, contactless cards, online banking and peer-to-peer transfers.The convenience, security and affordability of digital payment methods are making them increasingly popular among consumers. La Finteca is a leader in this shift from cash to digital alternatives. The company specializes in creating custom payment solutions designed to meet the specific requirements of business in Latin America.

Trends in selected Latin American countries

1. Columbia

   In Colombia “credit cards” were the most popular payment method accounting for 43% of total B2C e-commerce sales in 2021. The second most popular payment method was “bank transfers” accounting for 28% of the market.

2. Peru

   In Peru “credit card” was the main online payment method, accounting for 37% of B2C ecommerce sales. Other methods included “debit card” (25%), “cashier’s checks” (11%) and “wallet” (11%).

3. Dominican Republic

   In the Dominican Republic 91% of online banking users have a debit card and 61% have a credit card in 2021. Between 2020 and 2021 there was a significant increase in domestic e-commerce transactions using payment cards. In addition the number of international payment card e-commerce transactions increased in 2021.

Prosperity of digital-only banks

Digital-only banks are experiencing exceptional growth increasing by 27% since 2012 to reach a substantial market share of 52% in Latin America in 2021.

Conclusion

The digital payments environment in Latin America is rapidly evolving. Mobile payments, QR codes, digital wallets and a variety of payment methods provide consumers with unique choice and security. Contactless payments account for a significant 60% of e-commerce volume in Latin America. LaFinteca’s innovative solutions and customer-centric approach play an important role in shaping this emerging ecosystem. Whether you are a local business or a global player looking for optimization of your operations in the region, LaFinteca is your trusted payments partner.

«LaFinteca is a beacon of innovation and reliability in payment solutions in Latin America. With our broad reach, customized offerings and unwavering commitment to customer success we enable businesses to confidently navigate the complexities of Latin American markets.»