IDB: Digital payments have increased in Latin America and the Caribbean

According to a report from the Inter-American Development Bank, digital payments have increased rapidly in Central America, particularly in Panama, and in the Dominican Republic

Digital payments have experienced rapid growth in Central America and the Caribbean, according to the recent Inter-American Development Bank (IDB) report titled “Towards Greater Financial Inclusion for Development.”

The IDB published this Monday that “the percentage of adults in this region who own mobile money accounts has doubled, going from 4 % to 8 % between 2017 and 2021.”

According to the agency, the use of digital platforms facilitates savings, provides users with security and speed, in addition to reducing costs associated with domestic payments and international remittances.

Despite this increase in the use of digital channels, the IDB points out that the region still “must close gaps with other parts of the world both in the adoption of digital financial tools and in financial inclusion policies.”

Tomás Bermúdez, general manager of the IDB for the region of Central America, Mexico, Panama, the Dominican Republic and Haiti, cited in the report, highlights the need to promote policies that allow greater “availability and access to financial services such as credit, savings, payment of services.”

Digital payments constitute a key factor in electronic commerce in Latin America and the Caribbean. “In 2020, the value of transactions of this type exceeded 38 billion US dollars in the region and is expected to exceed 100 billion in 2025.”


Source: swissinfo

(Reference image source: Unsplash+, in collaboration with Getty Images)

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