Mastercard Reveals Most popular Cost Strategies in Latin America and the Caribbean

MIAMI – The digitalization of the economic system has gained an increasing number of momentum all over the world and the Latin American and Caribbean area has not been left behind. In an ever-changing world, technological improvements are altering the best way we work together day-after-day, and this extends to the funds trade, remodeling the best way on a regular basis funds are made and the way folks spend or handle their cash.

To be taught extra about the principle strategies and elements that customers take into account when making a cost, as a part of the Mastercard LAC Innovation Discussion board, Mastercard presents its new analysis that investigates the cost behaviors of customers in 14 nations in Latin America and the Caribbean.

Mastercard Payment Methods in Latin America and the Caribbean

Important Findings

In keeping with the principle findings, over the previous few years the usage of numerous different cost strategies has elevated: 77% of the customers have used digital funds, with credit score and debit being essentially the most utilized cost instrument each on-line and in-store. Debit has been highlighted as a very powerful digital cost technique, utilized by 63% of customers.

 “Digitalization in Latin America is a phenomenon that’s right here to remain, as it’s offered as an answer to the wants that Latin People face day-after-day. Mastercard has been recognized for being on the forefront of essentially the most present know-how tendencies and that features innovating on the tempo of customers. New cost strategies have turn out to be instruments that facilitate funds and transfers, which is why Mastercard has partnered with a number of digital wallets in numerous markets in Latin America and the Caribbean with the purpose of offering the very best cost expertise to all customers” stated Walter Pimenta, Govt Vice President of Merchandise and Engineering for Mastercard Latin America and the Caribbean.

With Open Arms: Latin American Customers Are Open to the Use of Applied sciences in Funds

Folks in Latin America and the Caribbean proceed to exhibit their openness to testing new cost strategies and their adoption of digital cost strategies. On this regard, playing cards proceed to be the popular medium and use of different digital strategies has elevated exponentially, whereas the usage of money has decreased.

The usage of money has been declining lately, with a 3rd of customers indicating that their desire for this selection has been displaced by the digitization of funds. As well as, greater than half of customers surveyed (63%) indicated that they have been very comfy utilizing new applied sciences.

On this context, it’s price highlighting:
  • Debit playing cards are essentially the most used cost technique, with a utilization price of 55% and 41% for in-store and on-line purchases, respectively. Right here, Chile is the nation with the very best penetration of debit playing cards, each in-store (82%) and on-line (72%).
  • 50% of customers point out that the adoption of digital funds is motivated by lowering the usage of money. The second purpose, with 45%, is because of the velocity of the transaction.  Greater than in every other market within the area, 60% of Argentinian customers carry much less bodily cash with them.
  • Whereas the introduction of recent cost strategies has elevated, customers desire digital wallets when making a purchase order in a retailer as a result of comfort (45%), velocity (44%), and accessibility/consumer expertise (44%).
  • Two-thirds of customers use digital wallets for on-line or in-store transactions. The nations that make the very best use of this kind of cost are Argentina and Uruguay, the place greater than 80% of customers have used it.
  • Digital wallets primarily attraction to younger adults, much more so relating to making on-line funds. 44% of customers between the ages of 18 and 30 cited comfort as the highest issue driving their on-line cost preferences.
  • When making a purchase order, 44% of customers use a cellular machine to carry out a transaction. The nation the place these units are most used for funds is Brazil (86%), whereas in Jamaica it’s the reverse, the place this kind of cost has not been applied for essentially the most half (13%).

Safety: A Key Issue within the Use of Playing cards

Throughout the funds ecosystem, customers are in search of frictionless experiences that enable them to make and obtain funds simply, shortly, and most significantly, securely. Safety – and particularly the concern of fraud – is the principle issue that determines shopper habits in relation to the cost strategies they use.

In actual fact, 83% of Latin People indicated that security measures are essentially the most influential side when selecting which cost technique to make use of, adopted by the safety of shopper monetary info at 79%.  

On the subject of occupied with safe cost strategies, debit playing cards take the highest spot. In keeping with respondents, debit playing cards are the cost technique they absolutely belief (36%), adopted by financial institution switch (34%) and bank cards (27%). On this case, Uruguayan respondents stand out, who with 67% are those who really feel the most secure when making transactions with their debit playing cards, whereas Colombians are those who discover them much less safe (11%).

“We all know that cyberattacks are a rising concern within the Latin American area for all customers. Folks deserve the power to make funds conveniently, shortly and simply with out compromising their safety. That’s why Mastercard is constantly taking the mandatory actions to strengthen the safety of our customers by means of a holistic cybersecurity technique. To make sure a safe digital ecosystem, we use information analytics and AI to establish vulnerabilities prematurely and activate automated safety shields for all our customers,” stated Pimenta.

Privateness as a high precedence

Customers in Latin America and the Caribbean are extremely involved about their information privateness on this planet of digital transactions, the place 73% of respondents stated privateness is a high precedence, and that they all the time select cost strategies that shield consumer information.

Additionally, 96% say they take steps to guard their information. Among the many most important measures that respondents take to guard their privateness are:

  • Utilizing safe and dependable cost platforms – 45%
  • Keep away from sharing delicate monetary info on-line – 45%
  • Use sturdy, distinctive passwords for monetary accounts – 44%
Scope and methodology of the analysis

Research markets embrace Argentina, Brazil, Chile, Paraguay, Peru, Uruguay, Ecuador, Colombia, Panama, Costa Rica, Mexico, Dominican Republic, Jamaica and Puerto Rico. The analysis passed off between November 1st 2023 and November 19th 2023 and consisted of a survey of 9,489 adults aged 18 and over.