Expanding into Latin America can unlock significant growth, but payment acceptance often becomes an early constraint. Payment methods in Latin America differ widely from those in North America or Europe, and assumptions built around cards alone rarely hold. Across LATAM, consumers combine cards, bank transfers, cash-based vouchers, and digital wallets depending on context and access to banking.
Latin America’s payment landscape reflects a combination of structural and behavioural factors.
A significant share of Latin Americans remain underbanked or prefer not to use credit cards online. Informal employment, limited access to credit, and concerns around fraud all shape how people pay. Cash still plays a role, yet digital adoption has accelerated quickly, especially through mobile-first bank transfers and wallets.
Consumer behaviour also varies by use case. E-commerce payments tend to rely more on cards and digital wallets, while in-person purchases still favour cash, QR-based transfers, and local debit rails. Trust matters. Shoppers often choose payment methods they already use for daily transactions rather than international card brands.
For merchants, this means relying solely on international cards can limit reach, increase declines, and raise abandonment at checkout. Local payment methods in LATAM reduce friction by aligning with how consumers already move money.
Brazil has one of the most advanced and diverse payment ecosystems in Latin America. E-commerce payments split across several methods rather than concentrating on cards alone.
Credit cards account for roughly 44% of e-commerce payments, supported by widespread instalment usage. Pix, Brazil’s real-time bank transfer system, now represents about 40% of online transactions and continues to grow rapidly. Pix allows instant, low-cost transfers directly from bank accounts, often via QR codes.
Boleto Bancário remains relevant for consumers who prefer cash-based or delayed payment options. Digital wallets also play a supporting role, particularly for mobile transactions.
For in-person purchases, bank transfers lead at around 32%, reflecting Pix’s dominance at physical points of sale.
Mexico remains one of the most cash-reliant markets in LATAM, particularly for offline commerce. Cash payments via OXXO, a convenience-store-based voucher system, account for an estimated 44% of consumer transactions. This method allows shoppers to reserve an online order and complete payment in cash at a local store.
In e-commerce, debit and credit cards dominate, though acceptance varies by issuer and transaction type. Many consumers hold debit cards but lack confidence using them online, which keeps alternative payment methods relevant.
Supporting cash-based vouchers alongside cards is often necessary to reach a broader segment of the Mexican market.
Colombia shows strong card usage in e-commerce, with credit cards leading at approximately 46% of online payments. Bank transfers through PSE, a centralised bank transfer gateway, follow closely at around 34%.
PSE enables direct account-to-account payments and is widely trusted by consumers who prefer not to share card details online. Digital wallets are also gaining ground, with PCMI forecasts indicating they could represent 32% of POS transaction volume by 2030.
For merchants, combining cards with bank transfers is essential to support Colombian payment preferences.
Argentina’s payment landscape reflects high inflation, currency controls, and strong wallet adoption. Digital wallets lead e-commerce payments at around 46%, followed by credit cards at roughly 35%.
Local wallets such as Mercado Pago, Cuenta DNI, and MODO dominate daily payments, offering balance-based transactions, transfers, and QR payments. Consumers often rely on these wallets to manage funds outside traditional banking products.
Supporting local wallets is critical for payment acceptance in Argentina, both online and in person.
In Peru, debit and credit cards remain the primary e-commerce payment methods. Pago Efectivo, a cash and bank-transfer-based solution, follows as a widely used alternative for online purchases.
In physical retail, cash and account-to-account transfers remain common. Mobile payments and QR-based flows continue to expand, particularly in urban areas.
Merchants entering Peru should expect a mix of traditional card payments and local alternatives tied to bank transfers.
Chile has one of the highest card usage rates in Latin America. Around 60% of e-commerce sales volume is paid with credit cards, a figure projected to reach 61% by 2027.
For in-person purchases, digital wallets are the fastest-growing payment method, with an expected compound annual growth rate of 18% between 2024 and 2030. Mercado Pago, PayPal, and MACH currently lead wallet usage at the point of sale.
A strong card foundation combined with wallet support reflects Chile’s relatively mature payment environment.
| Country |
Leading e-commerce methods |
Key in-person methods |
Notable local rails or schemes |
| Brazil |
Credit cards, Pix, boleto |
Pix, bank transfers |
Pix, Boleto Bancário |
| Mexico |
Debit and credit cards, OXXO vouchers |
Cash, OXXO |
OXXO |
| Colombia |
Credit cards, PSE bank transfers |
Cards, bank transfers |
PSE |
| Argentina |
Digital wallets, credit cards |
Wallets, QR payments |
Mercado Pago, MODO |
| Peru |
Debit and credit cards, Pago Efectivo |
Cash, account transfers |
Pago Efectivo |
| Chile |
Credit cards |
Digital wallets, cards |
MACH |
Each LATAM market requires a tailored approach. Adding the most popular local payment method in each country often delivers more impact than expanding card coverage alone.
Card penetration varies widely, and cross-border card transactions can face higher decline rates. Alternative payment methods help reach underbanked consumers and reduce friction.
Local acquiring and routing can improve approval rates and reduce processing fees. Regional expertise also helps navigate settlement timelines and regulatory requirements.
Track approval rates, cart abandonment, and payment success by method and country. These signals highlight where payment choice limits conversion.
Currency controls and FX exposure vary across LATAM. Settlement planning should account for local currency collection and risk management.
Display local currencies, show available payment methods early, and highlight familiar options such as instalments in Brazil or cash vouchers in Mexico.
A large share of LATAM e-commerce happens on smartphones. Payment UX should prioritise QR codes, wallet flows, and simple mobile redirects.
Cash vouchers, bank transfers, cards, and wallets confirm payments differently. Automating reconciliation where possible reduces errors and customer support effort.
Payment methods in Latin America reflect local realities rather than global norms. Cards play an important role, yet bank transfers, wallets, and cash-based options remain central to how Latin Americans pay.
For global merchants, successful payment processing in LATAM depends on matching local expectations country by country. Supporting the right mix of payment methods in Latin America can remove friction at checkout, improve acceptance, and create a more resilient foundation for long-term growth.