Report: 90% of Latam Millennials Have Access to Digital Payments

Banks and merchants trying to capture the hearts and wallets of digital-first generations in Latin American countries are finding that younger consumers have come to expect fast, flexible multi-function mobile apps that offer a customizable user experience. 

While the majority of Latin American millennial and Gen Z consumers are generally relying on traditional banks for financial services, the numbers vary by country and is subject to change, as younger people increasingly experiment with apps and new methods of payments. 

PYMNTS’ Digitizing Payments In Latin America Playbook, done in collaboration with Kushki, shows that almost 90% of millennials in Latin America have access to digital payment methods. Overall, millennials and Gen Z are also more likely to reach for their phones for financial transactions than other demographic groups. 

Younger generations in Brazil are particularly on board with digital processes when it comes to their financial lives. The report shows that over 50% of Brazilian millennials and Gen Z consumers use a neobank as their primary financial institution, and 46% pay for goods using a digital wallet. When it comes to using contactless payment methods for making purchases, almost 50% of millennials in the country go that route.

Latin American banks and retailers that want to stay competitive and relevant over the long term have to keep pace with the shifting payment and banking needs of millennial and Gen Z populations. Younger generations’ adoption of digital banking and payment solutions can also be a driver for wider use across the region.

More Latin Americans are trying new methods of payments like QR codes and mobile wallets. One recent study showed that 94% of consumers in Peru can tap payment methods other than cash, and 40% have used contactless means of paying.

To learn more about the latest digital payments developments in Latin America, download the Digitizing Payments In Latin America Playbook.