In recent years, Latin America and the Caribbean (LAC) have witnessed a transformative shift in financial access, powered by the rapid adoption of fast payment systems (FPS). These instant, 24/7 digital payment infrastructures are proving to be a critical tool in bridging the region's longstanding gaps in financial inclusion. The results were highlighted in the BIS Paper "Fast payments and financial inclusion in Latin America and the CaribbeanFast payments and financial inclusion in Latin America and the CaribbeanFast payments and financial inclusion in Latin America and the Caribbean", by José Aurazo, Cecilia Franco, Jon Frost and Jamere McIntosh of the Monetary Department of the Bank for International Settlements.
Traditionally, barriers such as high fees, lack of trust in financial institutions, and insufficient documentation have kept many adults from using formal financial services. According to the World Bank’s Global Findex data, high costs and limited income are among the main obstacles in opening bank accounts in the region. For many, geographical distance to banks and cultural scepticism have compounded the issue, leaving a sizeable portion of the population reliant on cash and informal methods.
The rise of FPS across the region—exemplified by Brazil's Pix system and others—has begun to change this landscape. By offering immediate, interoperable, and low-cost transaction options, FPS provide an attractive alternative that meets the needs of diverse users. PIX, for instance, allows peer-to-peer payments free of charge, while charging low fees to merchants accepting consumer payments, striking a balance between affordability and business incentives.
Benefits of these systems extend beyond simple convenience. Studies show that the introduction of FPS is associated with a notable increase in the number of people borrowing from financial institutions—rising by nearly 4 percentage points—and maintaining formal savings accounts, which grew by around 3 percentage points. These shifts signal that FPS not only enhance payment efficiency but also foster greater engagement with the financial sector as a whole.
From payments to data
Moreover, the digital nature of these payments creates a "data trail," enabling informal sector enterprises to transition into the formal economy. This formalization opens doors to credit access and tailored financial products, which can stimulate growth and development. Countries with widespread digital payment uptake also report a reduction in informal employment and positive impacts on GDP growth, reinforcing the broader socio-economic benefits.
The rapid increase in fast payment volumes in key markets such as Brazil, Mexico, and others coincides with a reduction in cash use, underlining a regional trend toward digital finance. For example, Brazil processes about 27 fast payment transactions per person per month, reflecting strong user acceptance.
Yet, challenges remain. High transaction fees can still pose barriers, especially where interoperability between different payment systems is limited. Infrastructure gaps—like unreliable internet coverage—and cultural factors also affect participation. Central banks and payment providers continue to work on initiatives to tailor services to the unique needs of excluded populations, aiming to leave no one behind.
