Digital payments: The engine of Latin American regional growth

In Latin America, digital payments are driving greater competitiveness for entrepreneurs; by integrating them into the economy, transactions are not only modernized, but the entire region is strengthened.

The dream of many entrepreneurs is to see their products distributed in their cities, cross borders, and conquer new markets with peace of mind and confidence. This dream becomes more real every day as payment systems have evolved substantially, allowing buyers and sellers to trust their transactions completely.

Alejandro Ramírez, director of Kamarija, a Colombian coffee startup already taking giant strides, recalls the first time he decided to export to other countries and the learning process he had to navigate.

“They contacted us because they saw us on social media and wanted to try our coffee. I began an exchange of information, as we needed to know the requirements as a company; ignorance of the law does not exempt you from it,” Ramírez recalls.

With the hope of sending his first order, he researched how he could receive payment. He learned about the export process, the additional payments he had to make, such as those to the National Federation of Coffee Growers, and the role played by the Banco de la República (Central Bank) in the currency exchange process. This step moves forward once the transfer is confirmed via the Swift code assigned to banks in each country.

He remembers his first international sale was to the United States, which today, after four years, has consolidated as his main destination. “It’s where we have the most affinity because of the ease, the air logistics, the couriers, and because we have more than 30 cargo flights leaving Colombia every day,” he stated.

The power of a click to grow

Undoubtedly, the relevance of virtual stores in local markets is on the rise. Social media has brought entrepreneurs closer to the dream of selling with just a click and receiving payments in a matter of seconds.

Laura Alfaro, Chief Economist and Economic Advisor of the Inter-American Development Bank (IDB), indicated in the most recent report that over the last decade, “we have witnessed a silent change with multiple consequences for Latin America and the Caribbean. The region's economies, previously dominated by cash, now depend increasingly on digital payment methods,” which she explained allows for economic growth and inclusion in the 21st century.

For Lácides Adolfo Guzmán, CTO of Bamboo, digital payments are profoundly transforming commerce in Latin America by eliminating obstacles that previously limited online sales and financial inclusion. “Today, a consumer can pay with a card, immediate transfers, or alternative payment methods, like PSE and the new Bre-B in Colombia, Pix in Brazil, SPEI in Mexico, or Yappy in Panama, from any device and in seconds,” he explained. The expert assured that the use of digital payments translates into security, transparency, and control, as well as compliance with regulations in each country. “Cash, on the other hand, leaves no trace and generates high costs for handling, transport, and risk of theft; furthermore, it lends itself to cases of corruption,” he explained.

From cash to trust: A region growing digitally

According to data from the fintech Bold, for example, more than 7 million transactions were reported in Colombian businesses through December 2024, totaling sales of around 297 million dollars. This growth is driven primarily by small and medium-sized enterprises, which have found digital payments to be a vital tool for achieving expansion.

In the case of Ecuador, according to a study by the Association of Private Banks of Ecuador (Asobanca), while the economy contracted by 2 % in 2024, banking operations grew by 5.7 %. This demonstrates the recovery of the financial system, highlighting digital channels as the key support for reactivation in 2025.

Meanwhile, in Panama, the National Secretariat of Science, Technology, and Innovation (SENACYT) indicated that the adoption of digital financial services boasts a 75 % financial inclusion rate and highlights that 92 % of payments are electronic, placing Panama at the regional forefront. Furthermore, the report Latin American Economic Outlook 2024: Financing Sustainable Development, by the OECD/CAF-Development Bank of Latin America/CEPAL, points out that technological advances are not only streamlining and securing financial transactions but also fostering competition, reducing costs, and promoting a culture of financial innovation.

Without a doubt, the expansion of digital payments has changed more than just how people buy and sell; it has transformed how they trust one another. Each transaction is a demonstration of credibility and transparency that opens new opportunities. It is the necessary impulse for dreams to grow—to move from being an illusion to a reality. In this way, the trust built click by click becomes the true engine of growth for the region.