51% of consumers in Latin America they have already made a transaction with cryptocurrencies.
Latin Americans want flexibility and convenience in digital currencies and payments and seek more support from their financial institutions.
MIAMI, June 22, 2022 / PRNewswire-HISPANIC PR WIRE / – The digital payments revolution that began during the pandemic is consolidating and boosting Latin American interest in cryptocurrencies. 51% of consumers in the region have already made a transaction with cryptocurrencies and more than a third say they have made a payment for a daily purchase with stablecoin, reveals Mastercard’s 2022 New Payments Index, a survey conducted between March and April this year among more of 35,000 people worldwide.
The New Payments Index annually assesses consumer behavior with respect to emerging payment methods. In its second edition, the study shows that financial innovation – cryptocurrencies, DeFI solutions, blockchain, NFTs – is a major activity in the region, with consumers eager to learn more about this ecosystem.
In Latin America, 54% of Latino consumers are optimistic about the return on digital assets as an investment. Meanwhile, two-thirds of Latinos want more flexibility to use cryptographic and traditional payment methods interchangeably in their day-to-day operations.
“More and more Latin Americans are interested in cryptocurrencies and want solutions that facilitate access to the world of cryptocurrencies. At Mastercard we are designing these solutions to expand digital inclusion and strengthen alliances that ensure operability and support,” he said. Walter PimentaExecutive Vice President, Products and Engineering, Mastercard Latin America and the Caribbean.
The survey shows that consumers in Latin America and the Caribbean it would feel safer to invest (69%) and make / receive payments (67%) in cryptocurrencies if they were issued or backed by a trusted organization. Another 82% acknowledge that they would like to have cryptocurrency-related features available directly from their current financial institution.
Digital payments, convenience and flexibility
Mastercard’s 2022 New Payments Index reveals that 86% of Latino consumers have used at least one emerging payment method in the last year. While 77% of Americans and 74% of Europeans prefer traditional payment methods to younger ones, Latinos are willing to use emerging methods such as biometrics, digital currencies, and QR code in addition to contactless payments.
“The future of payments is already here. Latin Americans are increasingly using technology to make their financial transactions, and this trend is expected to continue to grow, with an overwhelming 95% planning to use a digital payment method next year and 29%. acknowledging that he has used less money in the last year “, added Pimenta.
Consumers in the region are familiar with fintechs and open banking, which allows them to conveniently manage their personal finances. Almost 50% of Latin American consumers already use digital channels for financial activities and 78% of them are interested in flexible payment solutions that allow them, for example, to change the date of payment of their bills, especially those with irregular income and millennials.
Biometric payments: security and convenience
When deciding which payment method to use, Latinos prioritize security (54%), but also look for the speed that financial technology offers. Biometrics is emerging as an option to find that balance between convenience and security. Three out of four Latinos say “using biometric technologies for identity and payments is more secure than a PIN, password, or other form of identification,” but concerns remain about which entities have access to their data.
People under the age of 40 and millennials are more likely to perceive emerging digital solutions as secure. Although they still use them, people who grew up in traditional banking are more cautious, which is, for all actors in the payment chain, an opportunity to build trust.
For more information on this year’s New Payment Index, click here to access the Mastercard Writing.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and drive an inclusive digital economy that benefits everyone, everywhere, by making transactions secure, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses reach their full potential. Our decency ratio, or DQ, drives our culture and everything we do inside and outside our company. With connections in more than 210 countries and territories, we are building a sustainable world that will unlock invaluable opportunities for all.
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SOURCE Mastercard Latin America & the Caribbean