PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Mastercard Study Finds Digital Payments Are Spreading in Latin America

By Josh Einis
June 15, 2023
in Analysts Coverage, Digital Payments, Emerging Payments
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
An Update on Key Payment Developments in Latin America

An Update on Key Payment Developments in Latin America

The number of cash-only consumers in Latin America has decreased from 45% to 21%, according to a recently released study from Mastercard. Pre-pandemic, a quarter of respondents said they relied on cash for more than 75% of their monthly expenses, and that figure has dropped to 15% this year. This shift showcases the increasing acceptance and usage of digital payment methods.

A Digital Shift, but Still a Ways to Go

The Mastercard study highlights the ongoing efforts and progress in achieving financial inclusion in Latin America. While significant strides have been made in reducing the number of cash-only consumers, the need for continued focus and innovation to address remaining gaps and ensure comprehensive access to financial services is still prevalent.

Latin America’s relatively slower adoption of digital payments can be attributed to several factors, including infrastructure challenges such as limited access to reliable internet connectivity and smartphone penetration in certain regions. Informal businesses also often operate outside the traditional financial system, making it challenging to incorporate digital payment solutions. These businesses may lack the necessary infrastructure or incentives to adopt new payment technologies. But, as the Mastercard study notes, this is changing.

Indeed, a large share of small businesses surveyed (92%), said they’re accepting at least one form of digital payment. Currently, P2P payments or bank transfers are the leading payment methods accepted in the region.  

The relationship between digital payments and economic growth can be seen as a mutually reinforcing dynamic. Digital payments can act as both a driver and a symptom of economic growth.

On one hand, the adoption of digital payment systems can facilitate economic activity by enhancing efficiency, transparency, and security in transactions. It can reduce the reliance on cash, streamline business operations, and enable faster and more convenient transactions, thereby contributing to economic growth.

On the other hand, economic growth can also drive the adoption of digital payments. As economies grow, there is an increased need for efficient and convenient payment methods to support expanding commercial activities. This demand, coupled with technological advancements and changing consumer behavior, creates an environment conducive to the adoption of digital payment solutions.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CashDigital PaymentsLatin AmericaMastercard

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    July 15, 2025
    Embedded Finance

    Embedded Finance: Bringing Payments Under a Single Umbrella

    July 14, 2025
    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result