Latin America’s Digital Payments Market: Projections and Trends Shaping the Future of Transactions

The digital payments landscape in Latin America is rapidly evolving, fueled by key technological advancements and changing consumer behaviors. Mobile payment adoption, the rise of real-time payments like Pix, and growing cryptocurrency ownership are all contributing to the transformation of financial transactions in the region. This article presents a detailed analysis of current trends, data, and future projections in Latin America’s payments market.

Latin America's Payments Market Set for Rapid Growth: Revenue Projections and Market Share Distribution

As seen in the chart below, Latin America’s payment revenue is projected to reach USD 0.3 trillion by 2027, representing over 10% compound annual growth rate (CAGR) from 2022, according to McKinsey & Company.

However, despite this strong growth, the region is expected to account for under 10% of global payments revenue by 2027, far behind the dominant share held by Asia-Pacific and North America, as per McKinsey & Company.

This indicates the growing importance of Latin America within the global payments ecosystem but also underscores the relatively smaller role it plays in the broader market.

Real-Time Payments: Pix’s Rise in Brazil and the Shift from Card-Based Transactions

Real-time payment solutions, particularly Brazil’s Pix, are increasingly shaping the region’s payment methods. In 2023, Pix reached over USD 3 trillion in transaction volume, and its growth is expected to continue, surpassing USD 4 trillion in 2024, according to Brazil's Central Bank.

The share of Pix in Brazil’s E-Commerce payments rose from over 30% in 2023 to 40% in 2024, according to PCMI. By 2025, Pix is forecasted to surpass credit cards in Brazil’s online payment market. This trend reflects a broader regional shift toward real-time, low-cost payment methods, with increasing consumer adoption and growing support from merchants. The rapid adoption of Pix indicates a shift away from traditional card-based payment systems, which are being outpaced by faster and more efficient alternatives.

Mobile Payments and Digital Wallets: Regional Adoption and Impact on Consumer Behavior

Mobile payments and digital wallets are playing a central role in the region’s evolving payment preferences. In 2023, debit card usage surpassed cash for in-person transactions, capturing 36% of the market, compared to 30% for cash, according to McKinsey & Company. This shift reflects the growing reliance on digital-first payment methods, with debit cards being preferred for their speed and convenience.

In Argentina, digital wallets grew rapidly, reaching nearly 50% of the E-Commerce market in 2024, surpassing credit cards, which previously held over 50% of the market in 2023, according to McKinsey & Company, as per PCMI. ?Meanwhile, in Mexico, credit cards remained the dominant payment method in 2023 with over 40%.

These trends reflect the region’s growing acceptance of mobile-first payment solutions and the increasing importance of alternative payment methods like digital wallets in shaping consumer behavior.

Cryptocurrency Adoption: A Rising Trend with Regional Disparities

Cryptocurrency adoption in Latin America has grown significantly, particularly in Argentina and Brazil, where nearly 19% and over 17% of the population owned cryptocurrency in 2024, respectively, according to Triple A.

The region’s cryptocurrency ownership doubled from over 25 million in 2023 to surpass 55 million in 2024, as per Triple A. This growth in cryptocurrency adoption is driven by inflation and currency instability, which have led consumers to seek decentralized financial solutions.

The fintech sector in Latin America is also expanding rapidly. The increasing use of mobile wallets and the integration of alternative payment methods are helping to improve financial inclusion, especially in underserved areas. Fintech solutions are not only reshaping payments but also opening up new opportunities for businesses to reach customers in more efficient ways.

Barriers to Digital Payment Adoption: Merchant Acceptance and Regional Disparities

While the region’s digital payment market is expanding, merchant acceptance continues to be a barrier in some markets. In 2023, nearly 60% of respondents in countries with low mobile payment penetration cited merchant acceptance as the main obstacle to adopting digital payments, according to McKinsey & Company.

While larger retailers are increasingly adopting digital payment methods, small businesses and informal economies remain reliant on cash, hindering the broader transition to digital payments. This issue is especially prevalent in rural areas where banking infrastructure and mobile payment systems are still developing. Overcoming these barriers will be crucial for ensuring that digital payment solutions reach all segments of the population, particularly in less urbanized regions.

E-Commerce Payments: Market Share Shifts and the Rise of Alternative Payment Methods

E-Commerce in Latin America is experiencing significant growth, with credit cards still leading but facing increasing competition from alternative payment methods. In Brazil, credit cards maintained the largest share of E-Commerce payments in 2023 with 39%, but Pix grew rapidly, capturing over 30% of the market, according to PCMI.

By 2025, Pix is projected to overtake credit cards in Brazil’s online payments, reflecting a broader shift toward real-time, low-cost transaction solutions. Similarly, in Argentina, digital wallets grew rapidly from over 20% in 2023 to almost 50% in 2024, as per PCMI, further indicating the rise of alternative payment methods in the region.

Conclusion: The Growing Importance of Digital Payments in Latin America's Economic Future

Latin America’s payments market is rapidly shifting toward digital-first solutions, driven by the growth of Pix, mobile wallets, and cryptocurrency adoption. The region’s digital payments market is poised for continued growth, with transaction volumes increasing and digital payment methods gaining ground over traditional cards. While merchant acceptance remains a key barrier, the growing trend toward real-time payments and alternative solutions signals a broader transformation in consumer behavior.

The increase in digital wallet usage, the rapid rise of Pix in Brazil, and the growth of cryptocurrency ownership reflect a clear shift towards more flexible, mobile-first financial solutions. This trend, combined with ongoing efforts to improve financial inclusion and reduce reliance on cash, will continue to shape the future of Latin America's payment ecosystem.

About the Author

Yücel Yelken is the Founder and CEO of yStats.com, a provider of global market intelligence on e-commerce, online payments, and fintech. With 20+ years in market research, he helps businesses navigate digital transformation worldwide. He holds a Master’s in International Management from Arizona State University/Thunderbird and shares industry insights on LinkedIn. His expertise spans B2B and cross-border e-commerce, AI-driven payment innovations, digital wallets, real-time payments, embedded finance, and AI’s impact on these industries. Follow Yücel on LinkedIn for insights on e-commerce, fintech, and digital payments.