175 million people in Brazil now use its instant-payment system "Pix", developed by the country's central bank for real-time payments using QR codes or keys, and American Banker notes that the central banks of Argentina and Costa Rica also have developed their own widely used digital systems for instant payments.
Latin America has been able to build up sleek and effective payment systems in record time because it is not held back by legacy payment technology that isn't built for instant money movement. In the likes of the U.K., U.S. and Europe, payment systems are built on infrastructure that is often decades old. The process of building new systems is therefore incredibly operationally complex. Money must continue moving, so these systems can't just be "switched off."
Emerging markets, such as those in Latin America, did not have to contend with legacy technology on the same scale. Many of these communities were cash dominant until recently, due to the high fees associated with card usage and the lack of banking infrastructure in rural regions. However, while many people didn't have a local bank on their corner, they did have mobile phones... Through these digital channels, money moves instantly, via account-to-account transfers, QR codes and mobile wallets... Beyond this, real-time and traceable digital payments generate valuable cash-flow data that can transform credit underwriting for small and medium-size businesses, or SMEs. Historically, many SMEs in emerging and cash-reliant markets have struggled to access credit due to a lack of documented transaction histories, audited accounts or formal credit records...
Mexico is now poised to be the next success story. In Mexico, a third of people are unbanked, but 96% of the population owns a mobile phone. This creates the perfect launchpad for a digital-first payment system that can reach those historically excluded from traditional banking systems.
In fact, something already changed in 2025. Bloomberg reports that for the first time, digital payment transfers in the U.S.-to-Mexico remittance corridor exceeded cash transfers (with physical pickup locations like Western Union), according to Mexico's central bank. It's part of a Latin American market "worth more than $160 billion a year, roughly $62 billion of which goes to Mexico."
And Mexico's digitalization efforts will continue, according to the country's president, who said at a March banking conference that digital payments will now be encouraged for gasoline and tolls.
Latin America has been able to build up sleek and effective payment systems in record time because it is not held back by legacy payment technology that isn't built for instant money movement. In the likes of the U.K., U.S. and Europe, payment systems are built on infrastructure that is often decades old. The process of building new systems is therefore incredibly operationally complex. Money must continue moving, so these systems can't just be "switched off."
Emerging markets, such as those in Latin America, did not have to contend with legacy technology on the same scale. Many of these communities were cash dominant until recently, due to the high fees associated with card usage and the lack of banking infrastructure in rural regions. However, while many people didn't have a local bank on their corner, they did have mobile phones... Through these digital channels, money moves instantly, via account-to-account transfers, QR codes and mobile wallets... Beyond this, real-time and traceable digital payments generate valuable cash-flow data that can transform credit underwriting for small and medium-size businesses, or SMEs. Historically, many SMEs in emerging and cash-reliant markets have struggled to access credit due to a lack of documented transaction histories, audited accounts or formal credit records...
Mexico is now poised to be the next success story. In Mexico, a third of people are unbanked, but 96% of the population owns a mobile phone. This creates the perfect launchpad for a digital-first payment system that can reach those historically excluded from traditional banking systems.
In fact, something already changed in 2025. Bloomberg reports that for the first time, digital payment transfers in the U.S.-to-Mexico remittance corridor exceeded cash transfers (with physical pickup locations like Western Union), according to Mexico's central bank. It's part of a Latin American market "worth more than $160 billion a year, roughly $62 billion of which goes to Mexico."
And Mexico's digitalization efforts will continue, according to the country's president, who said at a March banking conference that digital payments will now be encouraged for gasoline and tolls.
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