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Cash is no longer Latin Americans’ preferred payment method

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Latin America’s payments evolution

In the news

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Digital boom. Latin America has made solid progress on the digitization of payments in recent years, with seven in ten adults in the region using digital channels for payments this year, up from four in ten a decade ago. According to a Brazil-based payments company, the region’s digital commerce market is projected to reach nearly $1 trillion by 2026, helped by a growing middle class. [Payments Journal]

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Rising remittances. The significant growth in remittance payments sent to Latin America presents an opportunity to boost financial inclusion, digitize the economy, and support low-income workers. Remittance payments sent to Latin America and the Caribbean grew to an estimated $156 billion last year, nearly tripling from ten years ago, the Inter-American Development Bank has found. [Bloomberg]

In just two years, the debit card has replaced cash as the preferred payment method among Spanish-speaking Latin Americans.

On McKinsey.com

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Rapid changes. Latin America has undergone a major shift in payment preferences, and cash is no longer king in terms of how people like to pay for things—although it is still used a lot, partner Jesus Moreno and coauthors explain. According to our surveys of more than 15,000 people in Spanish-speaking Latin America, between 2021 and 2023, debit cards, credit cards, and mobile payments all gained popularity as respondents’ preferred ways to pay. Cash has lost popularity.

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Consumer benefits. Mobile payments are gaining traction, especially in countries like Argentina and Peru. The surge in noncash payments presents opportunities for banks and other financial-services companies, potentially leading to improved payment experiences and tailored options for consumers. Explore key findings from our surveys, trends to watch for, and strategies banks can use to better serve Latin American customers.

Dive into payments data

—Edited by Jana Zabkova, senior editor, New York

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by "Only McKinsey" <publishing@email.mckinsey.com> - 11:05 - 30 May 2024

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Cash is no longer Latin Americans’ preferred payment method

Latin America’s payments evolution

In the news

In just two years, the debit card has replaced cash as the preferred payment method among Spanish-speaking Latin Americans.

On McKinsey.com

Archives

in

info@learn.odoo.com

A microscope on small businesses: The productivity opportunity by country

Remote is integrated with Xero, try our salary explorer, find us around the world, and more!

Cash is no longer Latin Americans’ preferred payment method

Latin America’s payments evolution﻿

In the news﻿

In just two years, the debit card has replaced cash as the preferred payment method among Spanish-speaking Latin Americans.﻿

On McKinsey.com

Latin America’s payments evolution

In the news

In just two years, the debit card has replaced cash as the preferred payment method among Spanish-speaking Latin Americans.