Latin America is undergoing a financial transformation. Once dominated by cash, the region is now embracing debit and credit cards, mobile payments, and instant transfers. A shift accelerated by digitalization, financial inclusion, and regulatory reform.

For global enterprises expanding across borders, understanding this rapidly evolving ecosystem is crucial. This article explores key payment trends in LATAM, the challenges companies face, and the strategies needed to navigate one of the world’s fastest-growing digital payment markets.

The shift from cash to digital

• In 2024, digital payments represented 48% of all e-commerce transactions and 30% of point-of-sale payments in Latin America, a massive jump from a decade ago.

• By 2030, digital transactions are expected to capture two-thirds of online retail and nearly half of in-store payments.

• The region’s digital-payment revenues are projected to reach US$ 300 billion by 2027, fueled by e-commerce, fintech innovation, and smartphone adoption.

Instant Payments as the new backbone

• In Brazil, Pix the real-time account-to-account payment system, surpassed 64 billion transactions in 2024, growing 53% year-over-year.

• In Mexico, instant-payment networks like CoDi and SPEI are expanding at 6% annually, serving roughly 60 million users.

• Similar initiatives are emerging across Colombia, Chile, and Peru, where national payment rails are being modernized to promote interoperability.

Country-level diversification

• Alternative methods. Digital wallets, A2A transfers, and QR-based payments now account for 46% of total e-commerce volume in LATAM.

• In Brazil, Pix drives around 22% of all online payments, while card usage still dominates in Mexico and Chile.

• In Argentina, Peru, and Colombia, digital wallets such as Yape and Nequi are becoming essential tools for the previously unbanked population.

Fintechs powering financial inclusion

• The number of fintechs in Latin America quadrupled from 703 in 2017 to more than 3,000 in 2023.

• Most of them focus on serving underbanked consumers through digital-first products and embedded finance models.

• The electronic payments market in LATAM is expected to grow 7.9% annually between 2024 and 2029, nearly double the global average.

Emerging trends

1. Interconnected payment rails and interoperability

Multiple national systems (Pix, SPEI etc.) are evolving toward cross-rail interoperability, enabling frictionless cross-border transfers and drastically lowering transaction costs.

2. Digital wallets as financial hubs

Digital wallets are becoming super-apps, combining payments, credit, insurance, and investments. They are the new financial gateways for millions across LATAM.

3. Buy Now, Pay Later (BNPL) expansion

BNPL adoption is accelerating in markets like Argentina and Mexico, allowing consumers to split purchases without credit cards — a key driver of online retail growth.

4. Rise of A2A and Open-Banking APIs

Account-to-account (A2A) payments offer lower fees and faster processing, while API-first strategies and open-banking regulations are streamlining cross-border settlements.

5. AI and data-driven fraud prevention

As transaction volumes increase, AI-based risk engines, behavioral scoring, and adaptive authentication are becoming vital to prevent cross-border fraud and ensure compliance.

Strategies for global companies expanding into LATAM

1. Adopt a “local-first” strategy

Avoid one-size-fits-all models. Adapt your payment stack to local preferences — Pix in Brazil, wallets in Colombia and Peru, and installments in Argentina.

2. Offer multiple payment options

Provide cards, digital wallets, BNPL, and real-time payments in one seamless checkout. This reduces cart abandonment and improves conversion rates.

3. Leverage local financing models

Installment payments are deeply embedded in LATAM culture. Integrating local credit solutions or “pay-later” options can significantly boost basket sizes.

4. Partner with a local company

Collaborating with licensed local acquirers or fintechs accelerates market entry, enabling compliance and access to existing acceptance networks.

5. Strengthen risk & compliance frameworks

Use real-time transaction monitoring and adaptive fraud detection. Compliance with local AML/KYC laws is critical to operating cross-border safely.

6. Manage FX and treasury efficiently

Implement smart FX hedging and local-currency settlement strategies to reduce exposure to currency fluctuations.

The payments landscape in Latin America is evolving faster than ever. The cash era is fading, replaced by instant, digital, and mobile-first ecosystems that are opening vast opportunities for financial-services providers and global enterprises alike.

For companies aiming to scale cross-border operations in LATAM, the time is now. Success will depend on local understanding, technological agility, and strong regional partnerships.

Next step: Identify your priority markets (Brazil, Mexico, Colombia, etc.), define a localized payment mix, and align with trusted regional partners to unlock LATAM’s full potential.

Cross-border payments with Beeteller

At Beeteller, we help international businesses connect seamlessly to this new financial reality. Our cross-border infrastructure provides full access to local payment methods such as Pix and digital wallets across Latin America.

We ensure regulatory compliance aligned with institutions like the Central Bank of Brazil, manage local settlement in multiple currencies, and deliver frictionless, compliant, and secure payment experiences. Whether you’re scaling e-commerce, managing payouts to partners and freelancers, or entering new markets, our solutions are designed to help you expand confidently and compliantly across Latin America.

Discover how our local expertise and global infrastructure can help your business thrive in the new era of LATAM payments. Talk to our team today.