News

Study examines e-payments outlook in South America

May 29, 2014

In 2013, approximately 170 million un- or underbanked adults lived in South America, providing ample incentive for banks there to support financial inclusion and the growth of electronic payments, according to Mercator Advisory Group.

But increasing the number of consumer bank accounts is not feasible overnight, so private and public sector organizations are working to accelerate the adoption of e-payments as a means to tap into a demographic that holds the potential for long-term growth across payment industry segments.

A new report from Mercator, “Unbanked and Underbanked Consumers in South America: A Market for E-Payments,” sheds light on the true extent of un- and underbanked populations country by country, and describes how local organizations are attempting to increase financial inclusion and boost electronic payment use. 

In the release, Tristan Hugo-Webb, associate director of the international advisory service at Mercator and the primary author of the report, described forces shaping the e-payments sector in South America:

As the global payment industry has grown, firms have begun seeking new international markets where the potential for robust electronic payment growth is emerging. Countries in South America are becoming more attractive as local economies mature and consumers begin the transition from traditional payment instruments to e-payment methods.

One of 13 exhibits in the 26-page report: