Financial Cards and Payments in Latin America

Delivery

This report comes in PPT.

Key Findings

Drive to move consumers away from cash in Argentina

With ongoing high inflation and a government policy of not issuing higher denomination bills to help combat it, the trajectory of electronic payments appears promising in Argentina. The drive to promote the adoption of virtual wallets and digital transfers, including the Central Bank’s Transfer 3.0 initiative, allowing payment of any QR code using any wallet, is further fuelling the use of non-cash payments.

Pix expanding beyond Brazil

Brazil’s Central Bank-backed Pix instant payments system is seen as having transformed the country’s financial landscape. Now, the Central Bank has plans to expand Pix’s coverage to other countries, starting with Argentina. This cross-border expansion suggests the potential for Pix to become a regional force in Latin America’s evolving payment landscape.

Digital transformation as a means of boosting financial inclusion

The unbanked population in Mexico was still more than 30% in 2023, but digital transformation is seen as heralding a revolution in financial inclusion. The emergence of neobanks offering accessible cards is empowering marginalised populations by simplifying banking prerequisites, with digital transformation and financial inclusion seen as being intricately woven together.

Pre-paid cards and mobile payments flourishing in Chile

Pre-paid cards continue to record rapid growth in Chile, offering financial access to a wider audience, including the unbanked and immigrants to this country. At the same time, mobile payments are flourishing, with a substantial proportion of Chileans opting for app-based payments. Looking ahead, there is significant belief that mobile payments will become the preferred choice for many local consumers over the forecast period.