EconomyDisruption, the future of digitizing payment methods

Disruption, the future of digitizing payment methods

Digital financial services platforms received a huge boost in the last two years. The pandemic forced people to break their consumption paradigms, putting aside their reluctance for digital transactions and the use of applications.

According to Mastercard’s New Payments Index 2022, the boost digital payments received during the pandemic is evidence of a profound transformation that goes beyond opening up to new payment methods, since it is actually a change in the concept that people have regarding the use of cash.

Indeed, nowadays money has broken the physical and limiting barrier of banknotes and coins. Transactions are made through transfers with applications, digital wallets, payments with cryptocurrencies, with QR codes, among other digital methods that often use biometric solutions to make payments.

In fact, the New Payments Index study also highlights that in Latin America 86% of consumers have used at least one emerging payment method during 2021 and 95% of those surveyed said they are willing to continue with these digital options. .

Fintech lead the financial disruption

In the current context, digital media have found in Fintech the boost they needed to consolidate. For this reason, Mastercard is a strategic partner of more than 100 Fintech companies throughout Latin America, being part of the wide range of solutions available to consumers, governments and companies in the region.

Fintech companies have found fertile ground in Mexico, since they have already issued the equivalent of 14% of all credit cards in the market. In such a way that the country has become one of the 8 economies globally with greater acceptance by consumers. Currently, 72% of the digitally active population has adopted some technological solution provided by the Fintech sector.

In addition, in Mexican territory, 54% of fintech companies register transactions and changes of more than 10 million pesos, while 16% reach transactions and changes of more than 300 million pesos per year.

For Mastercard, the sights are set on new use cases in payment technologies, which is why it encourages the incorporation of new players that add to the competitiveness of the market and, above all, help promote new products and services in benefits of the consumers.

Fintech is clearly an important part of Mastercard’s innovation strategy, enabling it to develop new payment products, provide innovative value propositions, and drive personalization and relevance to the ecosystem in order to deliver an outstanding user experience.

To better understand the new context, Mastercard is preparing another edition of the Digital Payments Summit, which will bring together experts, collaborators and key players to discuss trends and challenges in the payment industry in Mexico and Latin America.

The fifth edition of Mastercard’s interactive event will have as its central theme the interaction of digital assets as an essential element for a new global economy with digital resources, highlighting Mastercard’s contribution around the use of technology and collaboration with its business partners to help them become more agile in the disruption phase, creating new digitally enabled business models.

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