The Future of Digital Payments in Latin America: Trends and Forecasts

To better understand the payments landscape in Latin America let’s start with an overview of global trends in this area. E-commerce is expected to grow 55% from 2021 to 2026 to reach $6.6 trillion. Similarly point-of-sale (POS) payments are expected to grow by 28% to reach $15.2 trillion. The share of cash payments is gradually decreasing in the global market and is expected to account for only 10% of total POS payments by 2025, down from 18% in 2021. However it is worth noting that Latin America is expected to maintain a higher share of cash payments at 24% by 2025.

Financial sector transformation in Latin America

With more than 450 million smartphones in use by the end of 2021 Latin America is seeing a dramatic increase in the use of mobile payments. Driven by digital innovation and changing consumer habits the payments environment in the region is undergoing rapid change. LaFinteca plays an important role in this process through its innovative solutions and deep market insight becoming a key player in the Latin American payment industry.

These trends reflect changes in payment methods and payment habits in different Latin American countries:

• In Brazil credit cards remained the main payment method but the popularity of the PIX instant payment system is progressing. Mobile wallets are expected to grow 41% through 2025.
• In Mexico international credit cards were used for $17 billion of online payments. There is growth in alternative payment methods including “buy now, pay later” (BNPL).
• In Argentina credit cards and digital wallets have become the primary means of payment and the use of QR code transactions is growing.
• The use of credit cards, digital wallets and P2P payment apps is growing in Chile.
• In the Dominican Republic online card payments on domestic and international sites are increasing.
• Colombia has seen a sharp increase in the use of debit cards and digital wallets.
• In Peru the use of P2P payment applications is growing strongly among online banking users.

Predictions and Conclusion

The future of digital payments in Latin America offers many prospects. The share of alternative payment methods in e-commerce is expected to reach 30% by 2024, reflecting the continued growth in the popularity of digital payments among consumers. LaFinteca is at the helm of this digital transformation. LaFinteca has become a symbol of efficiency and growth in Latin America’s dynamic payment environment with customized payment solutions, robust security measures and customer focus.