In recent years, Latin America has witnessed a significant transformation in its payment systems, with a notable increase in the adoption of digital methods.
The adoption of digital payments in Latin America has increased due to the expansion of the Internet, smartphones, and fintechs, projecting a global growth of 80% in cashless payments by 2025.
Pix in Brazil and Mercado Pago in Mexico are leading the change, with Pix reaching 44% of online payments by 2025 and Mercado Pago growing by 30.7% in net revenue in 2024.
The region has experienced a 66% increase in fintechs since 2017, and cryptocurrencies and the tokenization of assets are driving efficiency and financial inclusion.
This change has been driven by factors such as the expansion of connectivity, the growth of fintech, and the search for more efficient and secure alternatives by consumers and businesses.
According to data from Paymentology, the global volume of cashless payments is expected to grow by more than 80% between 2020 and 2025, rising from approximately 1 trillion transactions to nearly 1.9 trillion.
This growth reflects a global trend that is also evident in the Latin American region.
Maria Fernanda Juppet, CEO of CryptoMKT, stated that digital payments are no longer a trend but a necessity in the global economy. The adoption of cryptocurrencies and the tokenization of assets are redefining the way we understand transactions, allowing for greater efficiency, security, and financial access.
How have digital payments evolved in Latin America?
In Brazil, the instant payment system Pix, introduced by the Central Bank in 2020, has gained massive adoption. It is projected that by the end of 2025, Pix will represent 44% of online payments, surpassing credit cards, which are estimated at 41%. This transition highlights the efficiency and convenience of digital payments in the country.
In Mexico, although cash remains dominant, with 90% of the population using it regularly, there has been growth in the adoption of digital payments. In 2024, Mercado Pago experienced a 30.7% increase in net revenue compared to the previous year, reaching 387 million dollars between July and September. The company also granted more than 1.5 million loans to small and medium enterprises (SMEs) and launched its own credit card, expanding its presence in the Mexican financial market.
"The development of digital payments globally is a paradigm shift that is transforming the way we interact with money. Technology has enabled unprecedented financial inclusion, breaking down barriers and connecting millions of people around the world. At Atómico 3, we believe this is just the beginning of a revolution that will continue to redefine the global economy." — Pablo Rutigliano, founder of Atómico 3.
Regionally, the digital payments industry is projected to grow at a rate of 7% over the next five years, surpassing the global rate of 5%.
This growth will open new opportunities for innovation in financial services, improving inclusion and efficiency in transactions.
The growing penetration of smartphones and access to the Internet have been fundamental to this boom. It is expected that by 2025, smartphone penetration in the region will reach 78%, facilitating access to digital financial services for a wide population.
Additionally, the number of fintechs has grown by 66% since 2017, with Brazil and Mexico as the main innovation hubs in this sector.
Sebastián Reyes, Chief Analytics Officer of Vita Wallet, explained that the advancement of digital payments has been crucial in empowering users to manage their finances with greater freedom, regardless of distance or currency. The evolution of digital payments is imminent, and it is important to understand the needs of users in this regard, as well as the security measures that must be in place to achieve efficient, fast, and secure payments.
In summary, digital payments in Latin America are on an upward trajectory, with projections indicating sustained growth in the coming years. This phenomenon not only reflects technological advancements but also changes in the preferences of consumers and businesses seeking faster, safer, and more convenient solutions for their financial transactions.
