Latin America has long been a region marked by stark contrasts between the booming metropolises and the  rural areas. At the core of this divide has been access to basic financial services such as bank accounts and easy methods for payments of goods and services. However, a quiet revolution is underway, driven by the rise of technology, which is transforming economies and reshaping how individuals and businesses interact with money. From mobile wallets to fintech platforms, these technologies are breaking down barriers to expanding financial inclusion, offering new hope for millions of previously under-banked individuals across the region.

The impact of digital payments in Latin America is profound, says Allen Cueli, Head of Products & Innovation for Visa, who shared his thoughts in the latest podcast episode of Integro Talks, “We’re witnessing an unprecedented shift. Mobile payments and fintech solutions are no longer just about convenience—they’re about accessibility, bringing financial services to the unbanked and the underserved.” This shift is playing an essential role in not only fostering inclusion but also accelerating the region’s economic growth.

According to the World Bank, over 200 million people in Latin America and the Caribbean remain unbanked, with limited or no access to formal financial services. Traditional banking infrastructures have struggled to penetrate remote and underserved regions, where many lack the necessary documentation or resources to open a bank account. As a result, the region has long been dependent on cash, which presents significant challenges in terms of security, efficiency, exposure to hyper-inflation, and economic growth.

“Historically, financial exclusion has been a major barrier to economic development in Latin America,” says Alberto de la Portilla, President & CEO of Integro Advisers. “Without access to basic financial services, individuals and businesses are unable to save, borrow, or invest effectively, limiting their ability to participate in the broader economy.”

Digital Payments: A Pathway to Inclusion

The rise of mobile wallets, digital banking apps, and fintech platforms is changing the financial landscape in Latin America. These technologies allow users to make payments, transfer money, and even access credit and savings products—all from a smartphone. And the adoption rate is accelerating. According to a report from the Inter-American Development Bank, digital payment adoption in the region grew by over 20% in just the past five years.

The flexibility and convenience offered by digital payment solutions are making financial services more accessible than ever before, especially for individuals who previously relied on informal financial networks. Fintech companies and mobile payment platforms are stepping in to fill the void left by traditional banks, offering low-cost, user-friendly solutions that cater to the needs of underserved populations.

“By leveraging mobile technology, we’re not just facilitating payments, we’re enabling people to participate in the economy in ways they couldn’t before,” says Cueli. “This goes beyond just providing access to financial services—it’s about creating opportunities for entrepreneurship, improving livelihoods, and driving economic growth at a macro level.”

Overcoming the Digital Divide

While digital payments are opening new doors for financial inclusion, challenges remain. The digital divide, which refers to the gap in access to technology and wireless networks, continues to pose a significant barrier to widespread adoption. Many people in Latin America, particularly in the rural areas, lack access to reliable internet or mobile devices, which are essential for using digital financial services.

“In some parts of the region, we face real infrastructural challenges,” de la Portilla acknowledges. “Reaching rural and remote areas where people don’t have the internet or the technology required for digital payments is an ongoing struggle.”

However, efforts to bridge this gap are well underway. Governments and private companies alike are investing in improving digital infrastructure, while fintech companies are developing solutions that can work in low-connectivity environments. Initiatives like offline payment options and SMS-based financial services are helping to expand the reach of digital payments even in the most remote regions.

The Shift from Cash to Digital

Traditionally, Latin America has been heavily reliant on cash. However, the COVID-19 pandemic accelerated the shift towards digital transactions, as concerns over hygiene and safety prompted a reevaluation of cash handling.

“The pandemic has really been a turning point,” says Cueli. “We’ve seen consumers and businesses alike begin to move away from cash in favor of digital payment solutions, both for health reasons and because they offer greater security and convenience.”

In fact, data from the Economic Commission for Latin America and the Caribbean (ECLAC) indicates that digital payments in the region grew by nearly 40% during the pandemic. As more people experience the benefits of these solutions, such as faster transactions and improved transparency, the trend towards digital payments is likely to continue, even as the world returns to a new normal.

Ensuring Security and Compliance

With the rapid expansion of digital payments comes the critical need to ensure the security and compliance of these platforms. As digital payments become more widespread, so do concerns about fraud and illicit financial activity. Ensuring the safety and integrity of these systems is essential to maintaining public trust and fostering a secure financial ecosystem.

“Security is always top of mind for us,” emphasizes Cueli. “Visa employs advanced encryption and authentication technologies to safeguard transactions and protect against fraud. We also work closely with regulators to ensure that digital payments meet the highest standards of compliance and transparency.”

In addition to protecting consumers, robust security measures help to deter bad actors from using digital payment platforms for illicit purposes, such as money laundering or evading commercial sanctions. By implementing strong compliance frameworks, the digital payments industry is playing a crucial role in promoting a safe and transparent financial system across the region.

The Future of Financial Inclusion in Latin America

As Latin America continues to embrace digital payment technologies, the region is on the cusp of a new era of financial inclusion. With the right mix of innovation, infrastructure investment, and regulatory oversight, digital payments have the potential to unlock unprecedented economic opportunities for millions of people across the region.

Ultimately, the rise of digital payments in Latin America is not just about financial services—it’s about empowerment, opportunity, and economic transformation. Cueli believes there’s still a lot of work to be done in Latin America. “By continuing to invest in digital infrastructure and developing innovative solutions, we can create a more inclusive and prosperous future for all.”

Want to learn more about the current state of digital payment technologies across Latin America? Hear all the insights directly from Allen Cueli and Alberto de la Portilla in our latest episode of Integro Talks.

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