The explosion of payments and digital wallets is starting to slow down and it is time to bet on financial inclusion to anchor growth and move to the next level.
As per a study led by Mercado Pago and Trendsity, one in four new digital wallets were adopted in the midst of the pandemic. Moreover, more than 50
percent of respondents decided to learn a little more about issues such as
saving or investing during their time at home.
The report also states that 1 out of every 3 retailers in Latin America started using digital payment methods. Argentina and Colombia have the highest percentages with 50% and 40%, respectively.
The research pursues the understanding of the current situation concerning financial education and analyzes the challenges related thereto so as to achieve a massive inclusion of the majority of the population in the financial system, through digital wallets and other financial services.
It also describes progress in the use of digital payments. Amongst the vendors
surveyed, 91% state that using these tools enabled them to reach more
customers during the pandemic.
During the last edition of Fintech Summit Latam, Diego Navarro, director of Mercado Pago in Colombia commented that in all of Latin America, between April and March, 39 million new people began to use our platform to make payments; 21 million of them came from Brazil, 8 million from Argentina. Other markets such as Chile, Colombia, Mexico, between three and four million. Peru and Uruguay, between half a million and
one million.
New and existing buyers caused massive growth in Latin America, with a 127%
increase in transaction volume. Among the trends, payment in financed
installments also stands out. In categories such as electro, more than 50% of
people have purchased stuff using this method. As regards the future of post-
pandemic digital payments, Navarro stated that there is a slowdown in Latin
America, to the extent that economies are already opening in face-to-face
spaces, however, " it is already at another, much higher level". Even though the end of cash will have to wait: " I think it's going to take a lot longer, the trend is that people are using less and less cash.
(Spanish)
