Central America & Dominican Republic Lead Digital Payments Surge in LATAM

[ad_1]

Panama, the region of Central American and the Dominican Republic saw the fastest growth in digital payment adoption within Latin America and the Caribbean, according to a recent study by the Inter-American Development Bank (IDB).

Digital payment adoption in Central America, the Dominican Republic and Panama doubled (from 4% to 8%) between 2017 and 2021, according to the study.

“The study highlights the number of account holders using mobile money and digital payments, which represents progress in the financial inclusion of businesses and homes in the region, opening a door to other financial products and services, allowing for increasing independence from traditional banking infrastructure,” the IDB explained in a press release.

Digital payment adoption in Latin America and the Caribbean jumped from 47% to 70% between 2021 and 2024, surpassing the global average increase from 35% to 57% during the same period, according to the study.

During this time frame, real-time payment systems such as PIX in Brazil, CoDi in Mexico and Transferencias 3.0 in Argentina have undergone modernization.

Colombia and Costa Rica are leading the region in mobile payment usage among young people, with penetration rates of nearly 30% and 45%, respectively. Mexico and the Dominican Republic closely follow with rates around 35%.

However, the region still lags behind others in adopting digital financial tools and implementing policies that promote financial inclusion. The primary obstacle remains the lack of robust telecom infrastructure.

The IDB’s report highlights the need for national financial inclusion strategies, financial education initiatives, fostering competition within the financial sector and improving loan recovery mechanisms.

Furthermore, the study reveals that companies in Central America and the Dominican Republic encounter financial constraints more frequently (35%) compared to the Latin American average (30%).

Similarly, household financial inclusion sits at an estimated 42% of the average for high-income OECD countries.

[ad_1]

Source link : https://nearshoreamericas.com/central-america-dominican-republic-lead-digital-payments-surge-in-latam/ Author : Publish date : 2024-05-07 15:23:04 Copyright for syndicated content belongs to the linked Source .

M	T	W	T	F	S	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

Central America & Dominican Republic Lead Digital Payments Surge in LATAM

Trump says U.S. sending ventilators, coronavirus help to Latin America, Asia

Gabriel Boric wins the runoff and will be the new president of Chile

Gabriel Boric wins the runoff and will be the new president of Chile

Saint Lucia in the Spotlight: What a Potential Travel Ban Could Mean for Caribbean CBI Nations

Arkansas Soybean Farmers Poised for Gains from China Deal, Yet Experts Warn of Potential Challenges Ahead

Unlocking Renewable Energy: St. Vincent & the Grenadines’ Innovative Closed-Loop Geothermal Project

California Takes a Stand: Gavin Newsom Launches New Portal to Tackle ICE Agent Misconduct

Exploring the Impact of the Landmark United States v. Carolene Products Co. Case

Choose Your Nation: GOP Senator Advocates for Ending Dual Citizenship!

Trump’s Bold Decision to Support Argentina Ignites Fury Among ‘America First’ Advocates

Devastating Pickup Truck Explosion in Ecuador Leaves One Dead and Two Injured

Major Breakthrough: El Salvador’s Notorious Gang Leader Arrested in the U.S

Empowering the Arctic: A Game-Changing Initiative in Greenland

Categories

Archives