MOBILE PAYMENTS
DEBIT CARDS SURPASS CASH
According to a recent report from McKinsey , in just two years , the debit card has replaced cash as the preferred payment method among Spanishspeaking Latin Americans , and mobile payments have quickly gained ground , too , particularly in countries such as Argentina and Peru .
Those are some of the key findings from their two comprehensive payments surveys polling more than 15,000 people in Spanish-speaking Latin America in 2021 and 2023 . Respondents to our 2023 survey overwhelmingly indicated that they prefer debit cards , credit cards and mobile payments over cash . This is striking , given that Latin America is still predominately a cash-based market with a high rate of informal labour . Many individuals still receive their wages in cash and frequently use it for numerous transactions , as many small businesses accept only cash . However , if given the option , these young consumers would prefer to use cards and mobile payments .
Nicholas Holt comments : “ The total number of digital wallet users will exceed 5.2 billion globally by 2026 . Businesses are discovering the capabilities of digital cards and wallets to enable loyalty and reward functions in real-time alongside payments . AI will enhance these capabilities , creating potential for brands to build ‘ Predictive
Credit Cards ’ that tailor credit limits and rewards based on consumer behavior .”
Kevin Carson , Senior Vice President at FreedomPay , concludes : “ Digital wallets not only make for quick , contactless payments but also provide businesses with a route to ethically collect customer data to personalise their customers ’ payment experiences .
“ According to new research from Lloyds Bank and FreedomPay , 80 % of companies said they use payments data to learn more about their customers and tailor their services and products to them .
“ Loyalty programmes linked to digital wallets provide companies with data that can be used to create unique offers that match the customer ’ s shopping habits , developing customer loyalty .
“ As mobile payments and digital wallets continue to transform how we pay , collecting consumer data will continue to become easier , helping companies to personalise their customer experiences .
“ Companies need to invest in the latest payment technologies to ensure that customers are offered their preferred method of payment in a frictionless manner . The Lloyds Bank and FreedomPay research found that 57 % of UK Retail , Food & Beverage , and Hospitality companies recognise that a poor payment experience could push customers towards competitors .
“ Now is the time to invest in advanced mobile payment technology as smartphones become the heart of the payment experience .”
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