In just two years, debit cards have overtaken cash as the primary means of payment in Latin America, according to McKinsey & Co.’s report for the first quarter of 2024. Furthermore, seven out of ten adults in the region have already made or received payments through digital platforms, according to the Beyond Borders survey. These trends, driven by Open Finance , are transforming payment methods, promoting financial inclusion and facilitating immediate payments.

We began with bartering in ancient Rome, where people exchanged agricultural products and animals. Then came currency that could be accumulated. With the advent of paper money, the fiat system was born, followed by credit cards, which introduced innovations like the magnetic stripe. Today, instant digital payments , powered by the internet, represent the latest evolution in payment methods.

The current landscape is shifting towards open finance, where users enjoy greater freedom to choose the financial services and providers that best suit their needs. The Inter-American Development Bank’s Digital Payments Ecosystems Report ( The IDB highlights the importance of adapting financial inclusion, ensuring reliable, safe and secure environments where users have control over their decisions and data.

Countries such as Brazil, Argentina, Chile, Colombia, Costa Rica, Ecuador, and the Dominican Republic, among others, were examined in the aforementioned report to assess their varying levels of development in payment systems. While some have made comprehensive progress with modernization, others have implemented noteworthy initiatives.

In summary, Latin American and Caribbean countries are aligned with global payment ecosystems, where financial inclusion, instant payments, speed of transactions, and security stand out as key trends in financial products.

Financial inclusion and Open Finance

The World Bank defines financial inclusion as the access of individuals and businesses to a range of useful and affordable financial products and services, such as transactions, payments, savings, credit, and insurance, provided responsibly to meet their needs. However, 1.4 billion people still lack access to banking services.

Open Finance allows individuals and businesses to securely and transparently access a wide range of personalized financial products, facilitating the exchange of data between various institutions.

There are success stories in Latin America that are driving competition and innovation in the financial sector, allowing those who have been traditionally excluded from the system to access services such as credit, savings and insurance, tailored to their needs.

According to the Finerio Connect portal , Brazil, Colombia, and Chile have implemented good practices in Open Finance that deserve to be highlighted:

Brazil

NubankOne of the world’s largest digital banks, Banco de la República has been a leader in the adoption of Open Finance in Brazil. Since its founding in 2013, it has taken advantage of regulations from the Central Bank of Brazil that encourage the openness and exchange of financial data.

The fintech company has surpassed 40 million customers in Brazil and has expanded its operations in the region, driven by its ability to leverage Open Finance and offer personalized services.

Colombia

Davivienda It has adopted an open innovation strategy, collaborating with fintechs and developers to create financial solutions. With its platform DaviPlata offers instant payments and affordable mobile transfers.

Chili

The Bank of Credit and Investments ( BCi)[Bank Name] has created an advanced digital platform that allows customers to access a variety of financial services. Integration with third-party APIs has improved the customization of solutions and the bank’s operational efficiency.

Open Finance cases in Latin America They are accelerating the transformation of payment methods by fostering interoperability and accessibility through open platforms. This is driving the adoption of instant payments and improving financial inclusion in the region.

PwC’s Payments 2025 & Beyond report highlights key trends that will shape the future of payments, emphasizing the growth of trust and financial inclusion, driven by widespread access to mobile devices and instant payments. By 2025, 80% of the world’s population is expected to have access to smartphones, further amplifying these trends.

The report also highlights the role of digital wallets, which allow users to store multiple payment methods and access financing from mobile devices. “Apple Pay, Google Pay, and ‘super apps’ like WeChat Pay and Alipay are leading this trend.”

Immediate payments in Latin America

Instant payments offer consumers a fast, secure, and reliable digital alternative to cash, applicable to a wide range of situations. For example, the Pix platform in Brazil has been a successful model for payment systems, rapidly gaining popularity and surpassing 160 million users since its launch by the Central Bank in late 2020.

This phenomenon is repeated in other Latin American countries, where speed of payment has become a priority for both individuals and businesses.

 

Currently, there are five instant payment platforms in the region: Brazil, with the successful Pix; Argentina, with Transferencias 3.0, which allows instant payments through interoperable QR codes; Mexico, with SPEI and CoDi, which facilitate free payments using QR codes and NFC; Peru, with the electronic wallet interoperability initiative; and Colombia, with Bre-B, which seeks interoperability of Immediate Low Value Payment Systems (SPBVI) and Redeban’s interoperable QR code , generated by the entity where the merchant has its account, allowing payments to be received from any banking app or wallet.

These solutions improve transactions, reduce time and costs, make life easier for users, and promote financial inclusion.

Fraud prevention with digital onboarding and identity verification

It is well known that identity theft remains a prevalent problem in the digital age. Nasdaq’s 2024 Global Financial Crime Report highlights that losses from bank fraud and scams reached nearly $500 billion globally in 2023.

Digital fraud is a constant threat, but with proper prevention, its impact can be minimized, creating a trustworthy environment in a constantly evolving world. Strengthening fraud prevention is essential, and solutions such as 100% digital onboarding, along with identity verification using facial, fingerprint, or voice biometrics and real-time validation, are secure trends that help reduce identity theft.

Protection on immediate payments

With the evolution of payment systems, the financial sector cannot afford to fall behind. It is essential that it adopts robust technology to protect sensitive user information, while also promoting innovation to simplify and streamline its processes, thereby improving the customer experience.

The PwC survey reveals that “in the next five years, regulatory changes related to data privacy and cybersecurity are the main concerns (48%) of executives in the sector.”

Technologies such as PCI-DSS certification, the 3D Secure authentication protocol, tokenization , and intelligent transaction monitoring modules for fraud prevention will continue to be key pillars in the offering of financial products and services. In a constantly evolving world, data remains the most valuable resource.

Financial inclusion, driven by Open Finance in the era of instant payments, is fundamental to advancing the financial revolution. This situation presents a double benefit: the financial sector leads innovation in payment methods, while users enjoy more agile and fluid experiences. As these trends continue to evolve, the need for more comprehensive, reliable, and secure payment methods is reinforced, consolidating a more accessible and efficient financial future.

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*Report: The Rapid Evolution of Payment Methods in Latin America. McKinsey & Co., 2024. Access the full document here .