Digital Payments: The Engine of Latin American Regional Growth

In Latin America, digital payments are enabling greater competitiveness for entrepreneurs. With their use in the economy, transactions aren't just modernized; the region itself is strengthened. For many entrepreneurs, the dream is to see their products reach their own cities, cross borders, and conquer new markets—with peace of mind and trust. That dream is becoming more real every day, as payment systems evolve and buyers and sellers gain confidence in their transactions. Alejandro Ramírez, director of Kamarija, a coffee emprendimiento (venture) in Colombia that is already taking giant steps, recalls the first time he decided to export to other countries and the learning process he had to go through.

"We were contacted because they saw us on social media and wanted to try our coffee. I started an information exchange, because as a company, we needed to know the requirements—because ignorance of the law doesn't exempt you from it," Ramírez recalls.

With the ilusión (excitement) of sending his first order, he researched how he could receive the payment. He learned about the export process, the additional payments required—like those to the Federación Nacional de Cafeteros (National Federation of Coffee Growers)—and the role played by the Banco de la República (Bank of the Republic) in the dollar exchange process. This step moves forward once the transfer is confirmed via the SWIFT code assigned to each country's banks. He remembers that his first international sale was to the United States, which today, four years later, has solidified as his main destination. "It's where we have the greatest affinity due to the ease, the air logistics, the courier, and because we have more than 30 cargo flights leaving Colombia daily," he stated.

The Power of a Click to Grow

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

Laura Alfaro, Chief Economist and Economic Advisor for the Inter-American Development Bank, indicated in a recent report that over the last decade, "we have witnessed a silent change, but one 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, enables 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 stated that the use of digital payments translates to 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, by leaving no trace, 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, in Colombia, more than 7 million transactions were reported in the country's businesses through December 2024, totaling sales of around 297 million dollars. This growth is driven mainly by small and medium-sized enterprises, which have found a vital tool for achieving this expansion through digital payments.

In Ecuador's case, 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%, demonstrating the financial system's recovery and 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 accounts for 75% financial inclusion and highlights that 92% of payments are electronic, which places Panama at the regional vanguard. The OECD/CAF-Development Bank of Latin America/ECLAC report, Perspectivas Económicas de América Latina 2024: Financiando el desarrollo sostenible (Economic Outlook for Latin America 2024: Financing Sustainable Development), notes that technological advancements are not only expediting and securing financial transactions, but also fostering competition, reducing costs, and promoting a culture of financial literacy and innovation.

The expansion of digital payments has, without a doubt, not only changed how people buy and sell; it has managed to transform the way people trust one another. Each transaction is a demonstration of credibility and transparency that enables new opportunities and provides the necessary impulse for dreams to grow—for them to go from being an ilusión (a hope) to a reality.

In this way, the trust built click by click becomes the true engine of the region's growth.