Financial Cards and Payments in Latin America

Credit and debit cards are pushing expansion, dominating the growth of payment transactions

As the banked population in Latin America grows, it is credit and debit cards pushing payment transactions, and these have established themselves as the future for payment transactions in Latin America. Recessions in several countries have helped shape consumer preferences, helping them better understand and making them more inclined to accept and use card payment transactions. Most countries see credit as the leader in card payment, but debit follows very closely behind, and even leads card payment in some countries, such as Mexico.

Emergence of product innovation, with the increased use of mobile devices in transactions

With the increased prevalence of mobile devices across the region, and the use of mobile phones as magnetic card readers rocketing, Latin Americans are looking to mobile devices as the future for consumer payment transactions. Mobile payments are a small but growing component of the payments landscape, and in some markets, merchants are beginning to use mobile phones to accept card-based payments through the use of technological solutions. This is a critical development in parts of the region with underdeveloped payment infrastructure.

Global firms maintain their dominance in Latin America

Large global brands were successfully able to infiltrate the market at the beginning of the card payment boom in Latin America, and have continued to grow their shares through geographic advantage and product innovation.

Economic challenges remain a reality in Latin America

Despite increases in the number of cards in circulation and the number of transactions, several markets in Latin America are expected to experience ongoing economic challenges, with significant inflation in Venezuela and declines in total consumer payment transaction value in the region as a whole when accounting for exchange rates and inflation.