133  0 Kommentare New Mastercard Study Reveals Financial Inclusion Momentum in Latin America, Highlights Remaining Gaps to Close

What we learned three years since COVID:

Most Latin Americans (79%) have access to basic financial products, but there is still a gap among these individuals to achieve more advanced forms of financial inclusion.

• Access to credit: While 58% of Latin Americans own a credit card, only 3 out of 10 of them have access to other forms of credit (loans, insurance, or investment products).
• Uneven distribution of financial inclusion: only 59% of low-income respondents and 40% of respondents living outside major cities, indicated having an account.
• National governments opened doors to financial inclusion: 15% of respondents indicated accessing their first savings/deposit account upon the digitalization of public assistance.
• Consumers continued to climb the financial inclusion ladder after COVID: adopting products such as investments, insurance and Buy Now Pay Later solutions at faster rates.

The State of Digital Finance and Cash:

While the use of cash for day-to-day expenses decreased in favor of digital payments methods, consumers are living in an era when cash is co-existing with digital payments methods. Before COVID, 25% of respondents indicated that they used cash for more than 75% of their monthly expenses, yet in 2023, this number fell to 15%.

• The use of cash: across countries, we can see a reduction in consumer’s use of cash for more than half of their monthly expenses. Specifically, Argentina reported a 20% reduction, Brazil and Mexico had the most significant reductions (-17%) and in Peru and El Salvador, which are known for being in earlier stages of digitization, the reduction was less drastic with reduction of 8% and 5%, respectively.
• The role of payment acceptance: Despite this encouraging decline, cash is still the most used daily payment method, reflecting the strong role small businesses and public transportation systems play in the acceptance of digital payments.
• The digital pivot by small businesses: A majority small businesses surveyed (92%) reported accepting some kind of digital payment. By far, the leading payment method accepted is P2P or bank transfer (82%), followed by online marketplace (33%) and QR code (32%) in third place. Yet, these numbers also suggest large levels of informality and the use of personal accounts, as the platforms mentioned do not require that the business be formalized.
• Ecosystem incentives: Dethroning cash requires a closer look by digital payment providers to build solutions that offer relevant incentives for payers, consumers, and merchants.
• Mobile phones: With smartphone penetration reaching 80% across the region, they are now an integral part of the payment process with 88% of respondents indicating that they use their mobile phones to make transactions and open a new account (55%).

Access to different forms of credit remains an essential component in financial inclusion. Similarly, respondents highlighted that access to financial education is equally important, reinforcing that financial inclusion is not just about offering products, but also about understanding unbanked populations and communicating benefits according to their needs. Despite the gaps that still exist in Latin America, consumers report that financial inclusion has had a positive impact on their lives.

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