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Means of Payment in Latin America: evolution and opportunities

Published on May 20 2022. 22 minutes reading

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We all need to keep up with the evolution of payment methods. After all, when the way we transact money changes, society transforms as well.

Although the rate of banking penetration among the population is still higher than expected and reliance on cash remains a reality in Latin America, everything is rapidly changing, and therefore it is necessary to prepare for what is to come.

With this article, our focus is to support businesses that wish to keep up with the advancements and opportunities in this market, presenting an updated overview of the sector and tracing the evolution of payment methods in the region's main economies. Keep reading!

What are means of payment?

The term "payment methods" includes different ways that people can use to pay for products or servicesAmong them are debit and credit cards, cash, and... Pix, among others. To address this concept, it is important to provide a brief overview. Historical context and understanding how we got here.

It all began thousands of years ago with a system of bartering between individuals. With the evolution of society, trade, and technologies, the concept became much broader, expanding from the exchange of agricultural products to metal coins and... postPreviously, this led to paper money, which was created in the 17th century.

Today, when we talk about the concept and the various resources used to pay for something, we already have a completely different image. It is much more common to think about new payment methods and in all the different possibilities that the market offers – and which never stop increasing.

What means of payment are there?

Although cash is still the dominant payment method for in-person purchases in Latin America, representing 25% of sales volume according to... Global Payments Report 2025However, there are currently many other ways to make a payment.

Digital payment methods have advanced significantly in recent years, and have also been strongly boosted by the Covid-19 pandemic and the maintenance and expansion of online habits. Therefore, the trend is for this percentage to fall and for more and more Latin Americans to start using these new methods to pay for their purchases – as Brazilians already do.

Below we detail the different types of payment methods, dividing them into those that are already established and those that are on the rise.

What are the most commonly used payment methods in Latin America?

Payment methods in Latin America Source: Global Payments Report 2025

Cash

As we have seen, paper money is still the preferred method of payment for a large part of Latin Americans when making in-person purchases. However, this scenario has already changed in some countries and is likely to change even more: the Global Payments Report 2025 estimates that this percentage will drop to 17% by 2030.

Check

Although it may seem like a thing of the past, the truth is that until a few years ago, checks were one of the strongest means of payment in several countries in the region. Currently, It's a declining medium, no longer accepted in many establishments. ...and which has lost a lot of ground to debit and credit cards.

In Brazil, checks currently represent 0,5% of payment methods used by the population, but there are no plans to eliminate them. According to the Brazilian Federation of Banks (Febraban)The use of checks fell by 18% in 2024, a cumulative decline that reaches 96% since 1995.

Credit and debit cards

After the money, the card It is the other important player in payment methods in Latin America. Since its emergence, it has become very popular, and we have witnessed a growing adoption of credit and debit payments by both businesses and consumers.

In recent years, cards have evolved with technology and, today, in addition to chip cards and machines with easy access for merchants, it is also possible to charge by cell phone and use the approach payment.

Payment slip

It is a relatively common payment method among Latin Americans, because It does not require a bank account. for those making the payment – and, as we know, the rates of unbanked individuals are still significant here. form of paymentThe business issues a payment slip, and the consumer can pay at a lottery outlet, bank branch, or commercial establishment.

Instant payments

Based on Brazil's recent experience – successful implementation, adoption, and transaction volume by Pix, In addition to other successful cases around the world, it is possible to state that... instant payments They are promising in the region.

However, different countries are at different stages of development when it comes to instant payments. A few examples:

Brazil: success with the Pix, the Central Bank's instant payment system. Created in November 2020, the Pix By the end of December 2025, it had accumulated an additional 179 million users, according to... Central Bank statistics.
ColombiaColombia now has a national instant payment system. Bre-B, released in October 2025.
Argentina: implemented the Transfers 3.0 in November 2021, which has been gaining some traction since then.
Mexico: It has instant payment systems promoted by the Bank of Mexico, such as SPEI, CoDi and DiMo, which facilitate quick transfers and expand modernization and financial inclusion.
Chile: It does not yet have a single, nationwide instant payment method like the Pixbut it has been evolving with solutions such as digital wallets and contactless payments.
Peru: It is advancing in the development of its own solution, led by the Central Bank.

Contactless payment

In many countries, contactless payment, contactless or NFC (Near Field Communication Near Field Communication (NFC) gained traction after the start of the pandemic. This is largely due to the fact that it is a form of payment that increases the safety of the cardholder through social distancing.

According to a Visa surveyContactless payments already represent 67% of transactions in Brazil and about 70% in Latin Americaparticularly noteworthy are countries like Chile and Costa Rica, where usage exceeds 90%.

Payment link

Also among the digital payment methods that have been gaining strength in recent years is... payment linkThe procedure is simple and practical: the link is sent via message or social media, and the buyer opens it and makes the payment.

This is an alternative way to capture sales, without the retailer needing a website, physical store, or card machine to sell their products or services. Because of its ease of use, payment links are also a widely used solution by small entrepreneurs and freelancers, and are offered in... digital business account solutions.

QR code payment

Another option for paying without any physical contact is the QR code, whose use was boosted during the pandemic in YouTube live streams and the activities of social media influencers. In some countries, QR codes are used to advertise brands and encourage people to buy products via apps, as all the user has to do is scan the code that appears on the screen by positioning their device so that it appears in their digital viewfinder.

However, QR codes can also be used at points of sale, simplifying the relationship between retailers and the different players in the payment chain. In Brazil, this is one of the ways... payment capture to Pix in commercial establishments.

Private label cards

Major retailers in Latin America already offer financial services under their brands, mainly private label cards. In this way, thepostWe have the opportunity both to provide improvements to existing offerings and to expand customer relationships through "as a service" solutions (such as Banking as a Service, Acquiring as a Service , between others).

Currently, most retailers limit themselves to offering discount cards and loyalty programs, and to a lesser extent, other credit products.

Biometric payment

Among the means of payment technologies that have been boosted by the pandemic, is also advancing the biometry – but still with few use cases. This method can use fingerprint, voice, facial recognition or iris scanner. Therefore, it can be used in different contexts, especially as a way of authenticating operations.

This type of solution is already being explored in different countries and is expected to grow. According to Juniper ResearchBiometric payments are expected to gain strong traction in retail, reaching 46 billion transactions by 2028 and moving around US$1,2 trillion. The projected volume represents an expansion of 113,6% compared to 2024.

Wallets (digital wallets)

Digital wallets are rapidly gaining ground in the region, driven by increased smartphone use and the search for faster and more secure transactions. These solutions allow users to store cards, prepaid balances, and even access financial services, facilitating online and in-person payments, often via QR code or contactless payment.

Furthermore, wallets play an important role in financial inclusionBy serving consumers who do not have a traditional bank account, it acts as a bridge between physical money and the digital financial system.

Trends in payment methods in Latin America

Up to this point, we have analyzed the most traditional payment methods, as well as some more recent ones that are already well-established in the Latin American market. From now on, the focus shifts to... emerging solutions, which are beginning to gain traction and show high growth potential, representing important opportunities for the future of payments in Latin America.

Among the innovations that are beginning to gain traction in the region, the following stand out. wearable payments, which allow payments to be made through smartwatches, wristbands, and other connected devices, increasing convenience and reducing friction at the time of purchase.

Another rising trend is artificial intelligence agents, which then move into payment automation, financial management, and offer personalization, making transactions more efficient and intelligent.

It is also worth mentioning the progress of financial superapps and the integration of instant cross-border paymentsThese are solutions that are expected to gain relevance in the coming years and open up new opportunities for companies that operate in or wish to enter the Latin American payments ecosystem.

Advantages and disadvantages of each payment method.

Each payment method has its own characteristics that impact cost, speed, acceptance, security, and user experience. PixFor example, it stands out for its low cost, instant settlement, and wide adoption, but it still depends on a bank account and has limitations in some recurring billing models.

Os credit and debit cards They have high acceptance rates and allow for installment payments, but involve higher fees, a risk of chargebacks, and longer payment processing times.

O bank slip It is accessible to unbanked consumers and has a relatively low cost, but suffers from slow repayment and higher default rates.

Whereas cashAlthough widely accepted in person and without transaction costs, it presents security risks and poor traceability. digital wallets They offer speed and a good experience, especially on mobile, but still face challenges in achieving uniform acceptance and depend on connectivity and technology.

The size of the unbanked population is the biggest challenge facing the digital payments market in Latin America

Despite advances in digitalization, access to banking services remains the main challenge for the growth of digital payments in Latin America.

As shown in the 2nd edition of the Lands of Opportunities study, carried out by DockThe region has high connectivity rates, with approximately 85% of the population having internet access and 80% using smartphones, above the global average.

However, Only 71% of adults have a bank account., with strong inequalities between countries: while Brazil (96%) and Chile (97%) register high financial inclusion, Mexico (58%) and Peru (54%) still largely depend on cash, limiting the adoption of digital solutions.

Payment companies: the fintech boom in Latin America

One of the reasons why, with regard to the technological issue in means of payment, there is already great progress in the region is the high number of promising fintechs in these countries. In recent years, we have even witnessed a investment boom in Latin American startups in the sector.

In 2024, according to the survey "The New Era of Financial Inclusion in Latin America"According to Mastercard, Latin America and the Caribbean had more than 3.000 fintechs operating in 26 countries, which equates to a 340% increase in the number of fintechs since 2017.

In addition to the evolution of fintechs in the region, there is another phenomenon that has been driving the volume of means of payment companies in Latin America: the Embedded Finance . Through it, companies whose core business is not financial, they start to add solutions with this profile as another source of revenue and engagement of their audiences.

This is the case, for example, of retailers with private label cards, from industries with digital accounts to their partners and suppliers, among others. So, no matter the segment, any business can be a means of payment company.

Drivers of innovation in the Latin American financial market

Financial education and expansion of the financial system to overcome challenges

For the full evolution of payment methods, there is a need for financial education content Broad and accessible, with an approach that goes beyond just online channels, so that the most remote and vulnerable populations can also benefit.

In this sense, some initiatives to attract people with no or limited access to financial services The use of the internet has proven quite effective. Fintechs and retail companies have adopted effective offline strategies in physical stores and through various media.

Furthermore, the truth is that these players, in addition to finding a number of opportunities in Latin America, also have a a very important role in the development of the region.After all, as we have seen, the Scan It is a factor that supports financial inclusion, but it is not a determining factor.

To get more Latin Americans involved in the financial ecosystem, it must become more competitive, offering more accessible customer-centered services, encouraging innovation, and expanding the payment and collection infrastructure.

BNPL

O Buy Now, Pay Later (BNPL) This is a major trend in the Latin American payment methods market and promises to boost the region's economy. Linked to the e-commerce boom and the global expansion of the model, the solution is expected to grow significantly in the coming months.

BNPL is a A credit solution that facilitates installment payments for low- and medium-value goods. (such as household appliances). This allows low-income people in countries with high unemployment rates to obtain durable goods and stimulate the economy.

Although BNPL is a credit solution and so does entail credit checks, there are already some players – in Mexico, for example – where these checks are done without examining bank or financial service data. They use different information, like telecom data, so even people who don’t have a bank account or work in the informal economy can still gain the benefits of this means of payment.

E-commerce on the rise

Like everywhere around the world, Latin America also witnessed a surge in e-commerce during the pandemic. And even since the public health crisis ended, this new habit shows no sign of abating; in fact, it’s expected to continue to rise.

According to eMarketerThe Latin American region is currently the fastest growing in this segment, with an expansion rate approximately 50% higher than that observed in the rest of the world.

And what about payment methods in Brazil? Accelerated financial inclusion and innovation are driving the transformation.

According to data from Global Payments Report 2025, Brazil continues to be a global leader in financial innovation. thanks to Pix, the Central Bank's instant payment system that revolutionized transfers between accounts.

In 2024 the Pix boosted payments account-to-account (A2A) to become the main means of payment in the country, leading both in e-commerce, with 41% of the value transacted, and in physical retail (POS), with 32%.

Projections indicate that this model It will continue to expand strongly until 2030., with an average annual growth of 16% in e-commerce and 11% in physical stores, potentially reaching 58% of the value of online transactions and 46% in in-person transactions.

Even with the accelerated advance of Pix, the Cards remain a relevant pillar of the Brazilian payments ecosystem. According to the Global Payments Report, they accounted for almost 38% of the total transaction value in 2024.

Furthermore, cards remain the primary source of funds for digital wallets, cited by 69% of consumers, reinforcing the... The complementary role of these means in expanding financial inclusion. and in the transformation of the payments market in Brazil.

How to choose the best payment methods for your business.

The choice of payment methods should consider practical criteria aligned with the business strategy. It is essential to understand the target audience's profile and consumption habits, evaluate the average order value and the need for installment payments, as well as consider the type of product or service offered, whether it is a one-off or recurring purchase.

The business model (physical, digital, or omnichannel) also directly influences this decision, as do transaction costs, settlement times, and the impact on cash flow.

Challenges for companies that operate with multiple payment methods.

Operating with various payment methods expands options for consumers, but brings significant challenges for businesses. Among the main ones are... financial reconciliation more complex, the management of different rates and payment terms, in addition to the need for integrate multiple acquirers and gateways.

It is also necessary to consider the risk of a fragmented customer experience, operational failures, and the demand for real-time monitoring to ensure efficiency and control.

Security in digital payment methods

Security is one of the central points in digital payments, in the face of risks such as fraudscams, data breaches, and chargebacks. To mitigate these problems, it is essential adopting best practices such as strong authentication, encryption, data tokenization and continuous monitoring of transactions.

Compliance with safety standards and raising awareness among customers and employees also play an important role in preventing incidents.

The role of Dock in the evolution of payment methods

A Dock It acts as one of the leading players in financial services infrastructure in Latin America, offering a complete ecosystem of technologies that enable end-to-end financial operations.

Their solutions enable companies, banks, and fintechs to launch and scale payment methods with high availability, security, and regulatory compliance.

In other words, the Dock It enables businesses to integrate payments and financial services into a single platform, reducing operational complexity and accelerating sales. time to market and creating more financial experiences fluidas for the end user.

Want to understand how Dock Can it support the evolution of your business's payment methods? Speak with our sales team and discover the ideal solutions to scale your operation safely and efficiently.

FAQs: Main questions about payment methods

What are the most commonly used payment methods in Brazil today?

The main payment methods in Brazil include PixCredit and debit cards, and cash. According to the Global Payments Report 2025, the Pix It already leads in transaction value in e-commerce and is growing rapidly in physical retail.

What is contactless payment and how does it work?

Contactless payment, also called contactless NFC, or NFC, allows you to make transactions simply by bringing your card, mobile phone, or wearable device close to the payment terminal. It uses near-field communication, eliminating the need for a PIN for lower-value purchases.

What are the payment method trends for the coming years?

Among the main trends are instant payments, such as PixThe growth of digital wallets and the advancement of biometric payments are also noteworthy. wearable paymentsArtificial intelligence agents and financial superapps.

How do I choose the best payment method for my company?

The choice should consider the target audience profile, consumption habits, and average sales ticket. It is also important to evaluate the type of product or service, the business model, and the transaction costs involved.

What is a digital wallet and which ones are most commonly used?

Digital wallets are applications that allow you to store cards, balances, and make online or in-person payments directly from your smartphone. The most widely used digital wallets in Latin America are PayPal, Google Pay, and Apple Pay.

How can I ensure security in online payments?

Security in digital payments involves practices such as encryption, tokenization, and strong authentication. It's also essential to monitor transactions in real time to identify... fraudes and blows.

What is the difference between Pix And TED/DOC?

O Pix It allows for instant transfers at no cost, operating 24 hours a day, every day of the week. TED and DOC, on the other hand, operate only on business days and during business hours, with longer clearing times.

How does Pix Automatic for recurring payments?

O Automatic Pix allow recurring charges With prior authorization from the customer, as with subscriptions and monthly fees. After initial authorization, payments are made automatically on the agreed dates.

What are the advantages of Pix For businesses?

O Pix It offers immediate settlement, improves cash flow and reduces operating costs, in addition to expanding the acceptance of digital payments, including in physical retail and e-commerce.

Payment methods in Latin America: what you saw in this article

Means of payment are the different ways a product or service can be paid for. They include credit and debit cards, cash, instant payments, and others.
Latin America is a region with great opportunities for the banking and payments market because of factors such as the high demand for financial inclusion, the growing digitalization of the population, and the fintech-friendly business environment.
The evolution of fintechs in Latin America has been a driving force for payment methods, as has the Embedded Finance model, which allows businesses from different market segments to "become banks" and offer financial solutions to their audiences.
Some of the levers for the payments market and banking In Latin America, these include: financial education; new credit solutions such as Buy Now, Pay Later; the rise of e-commerce; and regulation.

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