Although it is not the case in Brazil, the region’s biggest market, cash is still the leading payment method in many Latin American countries. However, governments and financial institutions are working hard to encourage greater use of cards and digital payment methods as well as continuing to increase financial inclusion. The pandemic helped speed up this process, as are technological innovations and improving cybersecurity levels, as the payments landscape continues to develop in the region.
This report comes in PPT.
Although cash was consistently losing out to alternative forms of payment over the historic period, with the pandemic adding further impetus to this, it continues to be the leading means of payment in many of the countries in the region. Nevertheless, consumers continue to be won over by the convenience of non-cash payment methods, with government policies also encouraging the trend towards financial inclusion and cashless transactions.
Brazil has an increasingly competitive landscape, as open finance, digitalisation and more flexible regulations advance, and new players continue to gain space, challenging traditional banks. Not only fintechs, but also other new payment players, and even entrants from other industries that are now able to offer their own payment services and Banking as a Service (BaaS), are making the once-solid establishment adapt and respond with innovative solutions.
Working with banking institutions, the Mexican government has made an effort to implement contactless payments in one of the most important transport networks in Mexico City – that of the Metrobus. Travellers and commuters use less cash to pay for their tickets or to recharge their cards, instead using debit or credit cards, CoDi, electronic wallets and contactless technology to facilitate the process – and the number of Metrobus stations and stops able to facilitate this with the necessary technology continues to grow.
Card payments will overtake cash payments during the early part of forecast period, while electronic direct/ACH transactions will continue to see dynamic growth. However, m-commerce, and mobile proximity in particular, will be setting the pace in terms of dynamism, as the increasing smartphone ownership levels push ever more consumers into making purchases and payments via their mobiles.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.See All of Our Definitions
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