Financial Services Advisor

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

December 18, 2024

What’s the Impact of Digital Wallets in Latin America?

Digital wallets are likely to see rapid growth in emerging markets such as Latin America and the Caribbean, according to a recent report by FinTech Magazine. // File Photo: Kaboompics.com via Pexels.

Q

Emerging markets, including Latin America, are positioned for fast growth in the adoption of digital wallets, FinTech Magazine said in a report in late November. Areas that are underserved by traditional banks are embracing financial options that are mobile-first, said the report. How advanced is the use of digital wallets in Latin America and the Caribbean, and to what extent will their adoption expand in the coming years? What are the main reasons behind the growth of digital wallets in the region? What economic impact will the growth in this technology have in Latin America and the Caribbean?

A

Romina Seltzer, head of products for Visa Latin America & the Caribbean: “The remarkable surge in the adoption of digital wallets in Latin America is revolutionizing the payments landscape in unprecedented ways. According to a 2024 report by The Global Payments Report, digital wallets are emerging as one of the fastest-growing payment methods across Latin America, accounting for 21 percent of regional e-commerce spending in 2023. This growth trend is expected to continue with a compound annual growth rate of 21 percent through 2027. Additionally, 85 percent of Gen Z-ers in Latin America own and use a financial app or digital wallet, highlighting how these true digital natives are leading the charge toward smarter and more fluid digital payments. At Visa, we believe several key factors are driving this significant rise, including…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.