Latin America is one of the world’s most dynamic payments markets—marked by rapid digitization, high mobile penetration, and a leapfrog effect from cash to digital walletsDigital Wallets digital-wallets Applications or platforms (like Apple Pay, Google Pay) that store payment card data securely and allow users to pay digitally. and instant payments. With governments, fintechs, and big tech all playing active roles, the region is a vibrant fintechFintech fintech Short for financial technology, refers to tech-enabled innovation in financial services. lab.
Let’s break down the who, what, and how of payments across LATAM, focusing on major players like Brazil, Mexico, Colombia, and Argentina.
🇧🇷 Brazil: A Case Study in Real-Time Transformation
🔹 PIX: Brazil’s Instant Payment Star
Launched by the Central Bank of Brazil (BCB) in 2020, PIX is:
- Real-time (24/7/365)
- Free for individuals, low-cost for merchants
- Adopted by over 80% of the adult population
- Used for P2P, bill payments, government transfers, e-commerce
Key Features:
- QR code paymentsQR Code Payments qr-code-payments A type of payment made by scanning a QR code that contains payment details or initiates a payment process. (static and dynamic)
- Alias system (phone, email, CPF)
- Instant settlementSettlement settlement The process of transferring funds from the issuer to the acquirer.
- Open access via APIs
📈 PIX now handles over 3x more transactionsTransactions transactions Interactions where value is exchanged for goods or services. than debit and credit cards combined in Brazil.
🇲🇽 Mexico: Growth Driven by SPEI and CoDi
🔹 SPEI (Sistema de Pagos Electrónicos Interbancarios)
- Operated by Banco de México
- Enables instant interbank transfers
- Used by banks, fintechs, walletsWallets wallets See Digital Wallets.
🔹 CoDi (Cobro Digital)
- Built on top of SPEI
- Government-backed A2A payment system using QR codes and NFC
- Adoption slower than PIX but gaining traction in utilities and retail
Challenges:
- Smartphone penetration varies
- Cash still used by ~85% of the informal economy
🇨🇴 Colombia: On the Rise with Transfiya
🔹 Transfiya
- An initiative by ACH Colombia
- Real-time low-value P2P transfers
- Interoperable across major banks and fintechs
- Enabled through mobile numbers
Other Trends:
- Growing BNPL providers like Addi
- Neobanks (Nequi, Daviplata) driving wallet adoption
- Digital wallets accepted at POS and online
🇦🇷 Argentina: Innovating Amid Instability
🔹 QR Interoperable Ecosystem
- Mandated by Banco Central de la República Argentina (BCRA)
- Enables any wallet to pay at any QR-enabled merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services.
- High usage of wallets like Mercado Pago and Ualá
🔹 Transferencias 3.0
- Low-cost, real-time A2A payments using QR codes
- Strong growth, even amid inflation and economic uncertainty
Note:
Despite economic headwinds, Argentina leads in mobile wallet penetration and creative uses of digital payments.
💰 Other Payment Methods Across LATAM
🔸 Card Payments
- Still important but vary by country
- Brazil leads with EMV adoption and contactless
- Credit card penetration is low outside Brazil and Chile
🔸 Cash
- Cash still dominant in many countries, especially for low-income and informal markets
- However, cash usage is falling fast in urban centers
🔸 BNPL
- Exploding in popularity, especially in Mexico, Colombia, and Brazil
- Local players + Klarna, Addi, and Mercado Pago offering installments
🔸 Digital Wallets
- Mercado Pago, PicPay, Nubank, Nequi, Daviplata, Ualá
- Strong cross-border e-commerce usage too
🧩 Challenges in LATAM Payments
- Fragmented regulation across countries
- Financial inclusion gaps, especially in rural areas
- Cross-border friction remains high
- FraudFraud fraud Criminal deception involving unauthorized payments or use of financial credentials. & cyber threats are on the rise
🚀 What’s Next for LATAM?
- Instant payment schemes scaling to B2B and cross-border
- CBDCs being explored in Brazil, Mexico, and others
- Embedded finance and super apps reshaping access
- Cross-border RTP corridors (e.g., PIX–SPEI, PIX–ACH integration)
🌎 LATAM Payments Snapshot (2025)
| Country | Key Payment Methods | Market Share / Usage Insights |
|---|---|---|
| Brazil | PIX, Credit/Debit Cards, Digital Wallets (PicPay, Mercado Pago), Boleto Bancário | 🔹 PIX: 35–40% of all transactions |
| 🔹 Cards: ~30% | ||
| 🔹 Wallets: ~20% | ||
| 🔹 Cash: <10% and declining | ||
| Mexico | SPEI, CoDi, Cards, OXXO Cash Payments, Digital Wallets (Clip, Mercado Pago) | 🔹 Cards: 35% |
| 🔹 Cash: 45% (esp. offline) | ||
| 🔹 SPEI: 15% | ||
| 🔹 CoDi: <5%, growing | ||
| Colombia | Transfiya, Nequi, Daviplata, Credit/Debit Cards, Cash | 🔹 Wallets (Nequi, Daviplata): ~35% |
| 🔹 Cards: ~25% | ||
| 🔹 Transfiya: ~15% | ||
| 🔹 Cash: ~25% | ||
| Argentina | Transferencias 3.0, Interoperable QR, Digital Wallets (Mercado Pago, Ualá), Cards | 🔹 Wallets: ~50% |
| 🔹 QR Payments: >30% | ||
| 🔹 Cards: ~15% | ||
| 🔹 Cash: declining but still ~20% | ||
| Chile | Cards, Webpay, MACH Wallet, Bank Transfers | 🔹 Cards: ~50% |
| 🔹 Wallets (MACH): ~25% | ||
| 🔹 Bank Transfers: ~15% | ||
| 🔹 Cash: ~10% | ||
| Peru | Yape, Plin, Cash, Cards, Bank Transfers | 🔹 Yape/Plin: ~30% |
| 🔹 Cash: ~40% | ||
| 🔹 Cards: ~20% | ||
| 🔹 Bank Transfers: ~10% |
Notes:
- Market share percentages are estimates and may vary based on source and channel (online/offline, urban/rural).
- Digital wallets are surging across all markets, often leapfrogging cards in low-income segments.
- Instant payment schemes (PIX, SPEI, Transfiya, Transferencias 3.0) are driving massive changes in bank-based payments.
🔚 Summary
LATAM’s payments story is a leapfrog narrative:
- From cash to QR in just a few years
- From underbanked to mobile-native
- From friction-heavy to real-time flows
Whether it’s PIX in Brazil, CoDi in Mexico, or QR interoperability in Argentina, Latin America is defining the future of inclusive, efficient, and fast payments—on its own terms.