Why 70% of Latin American Orders Still Use Cash – Unlocking the Region’s Payment Revolution

Drawing on personal experience in international settlement and extensive market data, the author explains why cash remains the primary payment method for about 70% of orders in Latin America and how the region is rapidly shifting toward digital, instant payments.

Cash Dominance in Latin America

Delivery riders often collect cash, the platform records a debt, and the rider must later deposit the cash at a physical outlet, creating a long, costly, and error‑prone reconciliation loop that is still mainstream in the region.

Popular Local Payment Methods

In Brazil, the Boleto – a barcode‑based payment supported by multiple banks – remains one of the most widely used local methods.

Rise of Instant Payment Systems

Digital payments are exploding: Brazil’s Pix reached a 78% non‑cash share in 2023, with Pix transactions accounting for over 40% of total payments and a 2024 transaction volume of 26 trillion reais, poised to overtake credit cards. Mexico’s CoDi , launched under the 2018 FinTech law, enables QR‑code payments linked to bank accounts, bringing financial services to 60 million unbanked users.

Three‑Way Competitive Landscape

State‑backed instant payment networks (e.g., Brazil’s Pix, Mexico’s CoDi) offering near‑zero fees, real‑time settlement, and universal bank coverage.

International card schemes (Visa, Mastercard) still dominate large‑value and cross‑border transactions but are adapting to integrate with local instant systems.

Digital wallets and BNPL services gaining traction in Argentina, Colombia, and other markets, especially among younger consumers.

Key Business Opportunities

Cross‑border payment and remittance services targeting the $600 million‑plus unbanked population.

iGaming solutions leveraging Pix’s speed and low fraud risk.

Integrated payment platforms for SMEs offering settlement, account management, and credit.

Government‑driven social payment digitization via mobile wallets.

Buy‑Now‑Pay‑Later (BNPL) products for e‑commerce and consumer credit.

Winning Strategies

Embrace state payment systems – integrate Pix, CoDi, and similar networks rather than compete with them.

Focus on vertical niches such as iGaming, cross‑border e‑commerce, ed‑tech, and health‑tech that require tailored solutions.

Prioritize compliance – obtain local licences, adhere to evolving financial regulations, and treat compliance as a competitive advantage.

Localize operations – adapt to each country’s cultural habits, regulatory environment, and consumer preferences.

Overall, digital payments are becoming the backbone of financial inclusion, economic growth, and social stability in Latin America; companies that combine state‑backed instant systems, vertical specialization, and rigorous compliance are poised to become the next market leaders.