Ongoing trends continued to be seen in 2023, with the use of cash declining and the digital transformation of financial cards and payments markets in the region a major theme in Latin America. Be it the Pix instant payments system in Brazil or the impending arrival of Apple Pay in Chile, the financial future looks digital, even if cash remains important in a number of markets and financial inclusion rates still need some work in certain countries, eg Mexico or Peru.
This report comes in PPT.
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.
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.
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 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.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
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