Digital Developments: Charting Digital Payment Growth in Latin America

Digital payments have transformed the financial landscape in Latin America, reshaping how consumers and businesses transact. The region has become a hot spot for innovation, with digital wallets, account-to-account (A2A) transfers and buy now, pay later (BNPL) solutions rapidly gaining traction. By 2030, digital payments are expected to account for two-thirds of the region’s eCommerce transaction value and nearly half of its point-of-sale (POS) value. Cash usage has plummeted over the past decade, signaling a dramatic shift toward digital-first transactions.

FinTechs and government-backed initiatives are driving Latin America’s digital payments revolution, with solutions like Worldpay, Pix and Mercado Pago leading the charge. These efforts have promoted financial inclusion by enabling previously underserved populations to access formal financial services and participate in the digital economy. As a result, digital wallets and apps are becoming the preferred payment methods for many consumers. With innovative solutions and cross-sector collaboration paving the way, Latin America is emerging as a global leader in digital payment adoption — positioned for a more inclusive and digital financial landscape.

Digital Payments Take Latin America by Storm

Mobile Wallets and Apps Advance Purchasing and Financial Inclusion

FinTechs and Governments Drive Instant Payment Adoption

Latin America’s Digital Payments Momentum Is Just Getting Started

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Digital Payments Take Latin America by Storm

Digital payments in Latin America have surged in popularity in recent years and are now on the verge of displacing more traditional payment options like cash.

Digital payments are quickly supplanting cash as the payment method of choice in Latin America.

A recent survey found that digital payments accounted for 48% of eCommerce transaction value and 30% of POS transaction value in Latin America in 2024, a significant increase from 14% and 2%, respectively, in 2014. By 2030, experts project that digital payments will represent 66% of online purchase value and 49% of in-store transaction value. Meanwhile, cash’s share of in-store transaction value has dropped sharply — from 67% in 2014 to 25% in 2024. By 2030, it’s expected to fall further to just 17%, reflecting the growing preference for cashless payment methods.

64B

payments were recorded on Brazil’s Pix real-time payment system in 2024.

A2A transfers and digital wallets are key drivers of this shift. In 2024, A2A transfers via real-time payment rails made up 24% of eCommerce transaction value and 15% of point-of-sale (POS) transaction value. Digital wallets are the fastest-growing payment method for in-store transactions, with their transaction value projected to grow at a compound annual growth rate (CAGR) of 15% from 2024 to 2030.

Credit cards remain a prominent payment method online and in-store, accounting for 30% of eCommerce transaction value and 24% of POS transaction value in 2024. However, like cash, they are losing ground to digital alternatives. By 2030, credit card usage is expected to decline to just 21% of eCommerce transaction value and 19% of POS transaction value. This trend underscores the rapid adoption of digital alternatives as consumers across Latin America embrace more convenient and accessible payment options.

Brazil’s Pix is a remarkable example of digital payments’ surging popularity.

Pix, the government-backed real-time payment system developed by the Central Bank of Brazil, has achieved unprecedented growth, becoming one of the country’s most preferred payment methods. According to a recent report based on data from the Central Bank, Pix processed more than 6 billion transactions per month by the end of 2024, culminating in a total of 64 billion transactions for the year. This represents a 53% year-over-year increase, surpassing the combined total of debit and credit card transactions by 80%. On Dec. 20, Pix set a single-day record of 252.1 million transactions. Person-to-business (P2B) payments led the way, growing 94% year over year. Business-to-business (B2B) payment volume also grew, exceeding 1 trillion reals (approximately $178 billion) in December 2024, marking a 56% increase year over year.

Looking ahead, Pix is set to roll out two major innovations to further boost adoption. First, it plans to introduce tap-to-pay functionality using near-field communication (NFC) technology, offering a seamless experience comparable to Apple Pay but without transaction fees. Additionally, Pix Automatic will launch in June 2025, enabling recurring payments for subscriptions, utilities and investments.
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Mobile Wallets and Apps Advance Purchasing and Financial Inclusion

Mobile devices are rapidly becoming the preferred means and method for payments across Latin America, not only revolutionizing purchasing but also promoting financial inclusion.

Mobile wallets and payment apps have become go-to payment tools in Latin America.

62%

of Latin Americans use digital means, including mobile wallets, for regular payments.

Digital payment methods, including mobile wallets, have surged across Latin America. A study reveals that 62% of the population frequently use mobile wallets and payment applications for transactions, with adoption rates highest in Argentina (65%), Panama (63%), Colombia (62%) and Peru (58%). In some cases, these digital channels have even surpassed debit cards in usage. Satisfaction with digital payment methods is also notable, with Argentina (78%) and Colombia (67%) leading as the countries where these technologies are most positively perceived. Additionally, another study highlights that P2P transfers are the most popular mobile wallet feature, with 78% of users sending and 71% receiving money via mobile devices.

This shift reflects broader trends in Latin America’s financial landscape as digital means and methods increasingly replace traditional payment methods like cash. The convenience and accessibility of mobile-based payments empower consumers to manage their finances more securely and efficiently, even in areas with limited banking infrastructure.

Digital payments are promoting financial inclusion across the region.

A recent report found that consumer adoption of fast payment systems — such as Brazil’s Pix and Mexico’s CoDi, which enable real-time or near-real-time transactions — are closely tied to mobile phone penetration, which exceeds 70% in Latin America. As a result, mobile-based payments have become a critical tool for financial inclusion, particularly among unbanked populations. By reducing reliance on cash and traditional banking infrastructure, digital payments empower small businesses and individuals in remote areas to engage in the digital economy. Additionally, digital payment systems help lower remittance costs, making these transactions more affordable for households that rely on them, and facilitate microtransactions that sustain daily economic activity. However, challenges remain, including uneven infrastructure in rural areas and regulatory hurdles that complicate regional payment integration.
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FinTechs and Governments Drive Instant Payment Adoption

Instant payments are quickly becoming table stakes in Latin America, driven both by government initiatives like Pix in Brazil and private FinTechs like MODO in Argentina.

The Latin American FinTech scene is growing at a blistering pace.

Data from a recent survey shows that as of 2024 there are 3,069 FinTechs operating across 26 countries in the region, a sharp increase from the 703 FinTechs in 18 countries in 2017. Experts attribute this rapid growth to FinTechs seizing opportunities among traditionally underserved customer segments, including low-income families, younger consumers, and unbanked and underbanked individuals. Nearly half of respondents said FinTechs provided access to financial products and services that were previously unavailable, such as QR code and P2P payments, prepaid cards, BNPL solutions and international transfers. In terms of satisfaction, more than half of Latin Americans (52%) said they were either satisfied or very satisfied with the value FinTechs offer. Only 5% of respondents reported being unsatisfied.

3,069

FinTechs currently operate in Latin America.

Government initiatives are spurring digital payment growth.

Countries across the region have implemented programs to boost digital payment adoption among their populaces, ranging from pro-FinTech regulations and digitized subsidy payments to full government-sponsored instant payment systems like Brazil’s Pix. Since its introduction, Pix has significantly boosted financial inclusion by encouraging the opening of digital accounts across all societal segments and integrating more individuals into the financial ecosystem.

Governments have also boosted digital payment integration by enabling more widespread internet and mobile data access. At the close of 2023, 418 million Latin Americans, or 65% of the population, had access to mobile internet, a 75 million user increase over five years. In countries like Brazil, Mexico, Argentina and Chile, more than 80% of the population enjoys regular internet access. This demonstrates how improved digital infrastructure has supported financial inclusion in the region, with FinTechs playing a key role by introducing accessible and innovative digital platforms designed to meet the specific needs of Latin America’s population.
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Latin America’s Digital Payments Momentum Is Just Getting Started

The rapid rise of digital payments in Latin America presents a compelling case for continued investment, innovation and collaboration across the financial ecosystem. From government-led systems like Brazil’s Pix to FinTech-powered mobile wallets and peer-to-peer apps, digital solutions are reaching more consumers and businesses than ever — especially in underserved and remote communities. These platforms not only promote economic participation but also empower consumers with secure and convenient financial tools, reducing reliance on cash and enhancing financial literacy across the region.

As adoption grows, digital payments are helping to boost purchasing power, foster eCommerce expansion and enable small businesses to reach more customers. However, sustaining this momentum will require continued investment in infrastructure, regulatory harmonization and public-private partnerships. Ensuring that digital payment solutions remain accessible, affordable and interoperable across Latin America will be key to long-term success. Stakeholders who act now can help shape a more inclusive and connected financial future for the region.

The acceleration of digital payments across Latin America is more than a trend — it’s a transformation. By combining mobile-first innovation with inclusive financial infrastructure, the region is not only closing access gaps but redefining what modern commerce looks like. At Galileo, we see this as a blueprint for building digital economies that serve everyone — faster, fairer and on their terms.”

Tory Jackson
Head of Business Development and Strategy, Latin America, Galileo