Mobile payments have seen unprecedented growth across Latin America, driven by a surge in the adoption of mobile wallets and real-time payment systems. A high mobile subscriber rate (72%) and smartphone penetration (80%) in 2023, according to GSMA Association, combined with consumers’ demand for convenient, cost-effective, and user-friendly payment experiences, are fueling this powerful trend.

A report by PCMI reveals that digital and electronic payments now account for 60% of consumer spending in the region. Cash usage has declined sharply—from 57% of consumer spending in 2022 to just 37% today. In Brazil, cash accounts for only 12% of consumer payments, while in Mexico it stands at 47%, down from 66% in 2022. In Argentina, digital wallets captured 46% of e-commerce payments in 2024.

According to a Mastercard report, 77% of Latin American consumers have used some form of digital or electronic payment, with credit and debit cards—both physical and digital—remaining the most widely used instruments.

A Dynamic Ecosystem
Rather than competing, digital payments increasingly complement traditional payment methods. Latin American consumers now regularly use a mix of debit cards, credit cards, and mobile payment platforms.

On the technological side, regional differences are notable. In some countries, QR code-based mobile payments are dominant, while in others, contactless payments are more widespread.

AI integration into transactions is another rising trend. Artificial intelligence is being used to streamline and enhance interactions between customers, merchants, and financial institutions, drive personalization, and simplify transactions through automation.

Challenges and Solutions
Despite this growth, merchant adoption remains a significant challenge. Over time, however, this hurdle is expected to diminish as mobile payment systems offer lower-cost alternatives to traditional point-of-sale terminals, such as QR-based solutions.

Security is another top concern within the mobile payment ecosystem. A study by Forrester Research found that 38% of fraud cases in the region are linked to new and emerging payment methods such as digital/mobile payments and crypto.

As cyberattack techniques become increasingly sophisticated, traditional verification methods no longer offer sufficient protection against fraud. In this context, mobile ID solutions are emerging as a powerful tool in the mobile payments space. Why? Because they provide stronger security by verifying user identities in real time using cutting-edge technology. They also streamline authentication processes, enhancing the user experience. In addition, mobile ID solutions can support specific functions, such as age verification.

At Plusmo, we offer a comprehensive suite of mobile ID solutions designed to protect digital identities. These tools help organizations ensure secure customer transactions and defend against fraudulent activity.