The future of payments is already here. Increasingly, Latin Americans are turning to digital solutions for their financial transactions, and this trend is expected to continue its upward trajectory. Today, we highlight three trends among digital customers:
- Cards facilitating user digitization
- Growth in the use of digital wallets
- The growing relevance of security and privacy for customers
Will these three trends continue in 2024?
Cards: Consumers Choose the Most Convenient Payments, and Cards Remain at the Top
The Consumer Payment Behavior Study in Latin America conducted by Mastercard in 2023 demonstrated that 77% of consumers have used electronic payments. Cards remain the preferred method in physical stores (44%) and online (54%), but there’s also a significant trend towards adopting new payment methods, such as digital wallets, where 50% of Latin Americans use card-enabled digital wallets.
Fifty-five percent of consumers use the debit card payment method. Mastercard debit cards offer a secure and seamless digital experience with access to exclusive benefits.
The increase in cybercrime and the expansion of the digital environment to new communities and individuals worldwide raise growing concerns among consumers globally, as well as in the Latin America and Caribbean (LAC) region, especially when making payments and other banking transactions.
Customers with their Mastercard debit card gain transparency, control over their expenses, flexibility for purchases, and a fast and simple experience with instant access to the digital card, confirming that the debit card is the safest payment method for consumers at 36%.
Will Digital Wallets Be Used?
Digital wallets have gained popularity among young adults, who primarily choose them for online payments. A striking fact is that 44% of consumers between 18 and 30 years old mention convenience as the key factor influencing their online payment choices.
The importance of offering flexibility and accessibility to adapt to users’ individual preferences and the importance of offering a secure digital environment, made possible by data analysis tools and artificial intelligence technologies, provide customers with security, peace of mind, and privacy.
Certainly, the future of payments is already here. More and more consumers in the region are turning to technology for their financial transactions, and while the acceleration of digital adoption creates new complexities, it also creates opportunities to increase consumer trust.
Customers Aware of the Importance of Their Security and Privacy
The 83% of Latin Americans expressed that security features are an influential aspect when choosing which payment method to use, and 73% ensure that privacy is the fundamental priority.
It’s essential for consumers to be able to make payments comfortably, quickly, and easily without compromising their security. For this reason, Mastercard implements necessary measures to strengthen consumer protection through a comprehensive cybersecurity strategy.
In the face of persistent threats of hacking and scams, more and more consumers are adopting protection measures to safeguard their security, leading to the incorporation of multiple layers of privacy and security protection in the design of products and solutions, such as tokenization, encryption, and anonymization.
Source: Bloomberg Linea
