Over the past few years, Peru’s payments industry has experienced significant growth, driven by the increasing adoption of digital payment methods and ongoing technological innovation. While cash continues to dominate transactions – representing 35% of point-of-sale (POS) payments in 2023 and 9% of ecommerce payments through cash-based post-pay methods like PagoEfectivo – the landscape is evolving. By 2027, digital wallets and account-to-account (A2A) payments are projected to become the leading methods for POS and ecommerce transactions, capturing 28% and 31% of the market share, respectively.
The adoption of QR codes is fuelling this shift, along with the widespread use of apps like Yape and PLIN and government initiatives to boost financial inclusion. As the following sections reveal, the payments ecosystem in Peru is undergoing profound changes across multiple fronts.
In Peru, as in the rest of Latin America, cash was king for decades, by and large. However, the emergence of new paytech options and a mandate from the country’s central bank have significantly weakened its power – especially as these options gained momentum following the pandemic.
Yape and PLIN popularity: Yape, introduced by Banco de Crédito del Perú (BCP) in 2016 as a peer-to-peer (P2P) payment solution, marked a turning point for digital wallets in Peru. Designed to promote financial inclusion and reduce reliance on cash, Yape enabled users to transfer money easily using mobile numbers, even without a bank account. This innovation set the stage for the rapid growth of digital payments. Over time, Yape’s QR code payment functionality has significantly streamlined retail and small-business transactions. In response, BBVA, Interbank, and Scotiabank introduced PLIN, providing customers with immediate, bank-integrated transfers. Currently, Yape and PLIN each boast around 14 million users, but Yape dominates in terms of transaction volume, processing six times more transactions than PLIN.
Peru’s central bank-mandated payment interoperability: Interoperability has been crucial to the success of payment apps like Yape and PLIN. Recognising the need for seamless transactions across different platforms, Peru’s Central Reserve Bank (BCRP) mandated payment interoperability, with the first phase launched in April 2023. This enabled Yape and PLIN, the country’s two largest bank-owned A2A payment apps, to work together. By July, the second phase was live, ensuring A2A payment connectivity for all Peruvians. The impact was immediate: daily transactions between the two apps surged, with over a million transfers from PLIN to Yape alone and 1.6 million overall transactions recorded daily. This integration has significantly boosted P2P transactions, making digital payments more accessible and efficient for users country-wide.
These trends have resulted in a surge in digital payments, with more consumers choosing card and digital payment methods over cash. As a result, Peruvians now have access to a variety of innovative payment options, both for ecommerce and physical retail:
QR codes: before the central bank's interoperability mandate, QR codes at physical payment points were already gaining popularity, particularly those offered by providers like Izipay and Niubiz. Their widespread use – which we at PCMI estimate reached around 45% penetration in 20221 – extended beyond physical POS. Peruvians also began using QR codes for ecommerce transactions, thanks to payment service providers (PSPs) like Culqi, effectively diversifying both POS and ecommerce checkout options.
POS digitalisation: across Latin America, the digitalisation of POS has occurred rapidly and in a transformative manner. According to data from Visa, in 2023, 80% of face-to-face card payments at a global level were being made using contactless technology. This exponential growth highlights the rising popularity of contactless payments. Further underscoring this trend is the approximately 12,000 ‘Tap to Phone’ payment points within a market that includes 2 million businesses.
The rapid growth of alternative payment methods in Latin America has given rise to key players like Pix, CoDi, Nequi, and Yape, enabling real-time P2P and P2M transfers in both POS and ecommerce settings.
While Yape – Peru’s leading real-time payments (RTP) platform – lacks the scale Pix has achieved in Brazil, it still reaches 50% of Peru’s population and continues to expand. With a 50% adoption rate by 2023, Yape was estimated to have processed approximately USD 18 billion in transactions, with an average ticket size of USD 23. In early 2024, Yape expanded into Bolivia, where it now reaches 2.5 million users, including 500 businesses. Its main strategy is to evolve into a super app. To achieve this, Yape introduced new features such as commission-free remittance services to 37 countries, launched a marketplace, and entered the B2B segment with its ‘Yape Empresas’ functionality, aimed to enhance the experience for businesses that use the app.
In Peru’s evolving digital payments landscape, various solutions play a key role in reshaping the market, facilitating both P2P payments and transactions between businesses and consumers. The table below highlights some of the leading payment apps and platforms, showcasing their features, the type of services they offer, and their impact on the local market.
The increasing adoption of digital payment methods, particularly Yape, PLIN, and Niubiz, has paved the way for a broader range of payment options for consumers and merchants alike, as we’ll see in the following section.
Building on the growing influence of the key players discussed earlier, the payment methods landscape in Peru is shifting rapidly toward digital alternatives, although cash remains an important aspect of consumer behaviour:
Digital wallets and A2A payments: digital wallets, led by Yape and PLIN, are projected to double their share of in-store payments to 28% by 2027, at a 24% compound annual growth rate (CAGR). Similarly, A2A payment systems are set to become the leading method for ecommerce transactions, with a projected 31% share by 2027.
Cash’s enduring presence: despite the digital transformation, cash remains a significant payment method for the time being, particularly for POS transactions, as it was used in 35% of all in-store payments in 2023. Even in ecommerce, cash-based methods like PagoEfectivo accounted for 9% of total spend. As digital solutions gain further traction cash’s role is expected to diminish. Worldpay forecasts that by 2027, cash will account for 28% of POS transactions in Peru, a 7% drop, while digital wallets will account for 28%, a big leap from the 14% they accounted for in 2023, as the graphic above shows.
As digital payment adoption grows, particularly in ecommerce, it’s important to understand how shopper behaviour is evolving in Peru’s rapidly expanding ecommerce sector.
Peru’s ecommerce market has been experiencing rapid growth, with a total market size of USD 25.5 billion in 2023. With a 60% penetration rate and a projected CAGR of 35% from 2023 to 2026, Peru is emerging as one of Latin America’s top growth markets.
Credit and debit cards account for 31% and 20% of total ecommerce purchases in Peru, and as such, they are the primary payment methods for online purchases. However, it’s important to note that in 2023, A2A payments were significant, accounting for 20% of ecommerce transactions.
Digital wallets are gaining traction, particularly for mobile commerce. In 2023, wallets stood out with 11%, and are soon expected to make up 17% of total ecommerce transactions (see graphic above). Popular digital wallets include Yape, PLIN, PagoEfectivo, and BIM.
As we look ahead, in just a few years (in fact, by 2027), we will see A2A gain the most ground in Peruvian ecommerce, rising to 31% of transactions, as projected by Worldpay. This is due to their low transaction costs, and ability to provide instant, secure transfers without relying on card networks. A2A payments appeal particularly to businesses and consumers looking for faster and more efficient payment methods.
Meanwhile, debit cards are projected to decline between 2023 and 2027, as more consumers shift to digital wallets – which offer greater convenience, enhanced user experiences, and often integrate seamlessly with A2A systems. The rise of wallets is driven by their ability to store multiple payment methods, including bank accounts and credit cards, and by their growing acceptance across ecommerce and brick-and-mortar settings. This shift aligns with the increasing demand for flexible, mobile-first payment solutions that streamline transactions and reduce reliance on physical cards
Preferred devices:
81% of the total population in Peru uses the internet;
Mobile phones are the most popular devices for online shopping, accounting for over 64% of ecommerce transactions.
Favourite products:
By 2023, the retail channel occupied approximately 53% of the value of ecommerce sales; within this vertical, we find popular products such as:
Electronics: 30.4% of ecommerce sales;
Food and personal care: 25.2 % of ecommerce sales;
Furniture and household appliances: 18.3% of ecommerce sales;
Toys, hobbies, and home repair: 15.3 % of ecommerce sales;
Clothing: 10.7 % of ecommerce sales.
Shopper habits:
Spending: the Peruvian ecommerce consumer spends USD 741 annually.
Frequency: 64% of online consumers in Peru are considered ‘sporadic’, meaning they make up to four monthly digital transactions.
Age range: the typical online buyer in Peru belongs to the age group of 25-34 years old.
Several key players dominate Peru's ecommerce market, each contributing significantly to the overall landscape:
*Sodimac’s revenue was estimated according to Sodimac Peru’s number of stores over the total Sodimac stores.
Falabella, Sodimac, and Ripley dominate the Peruvian ecommerce landscape because they are deeply entrenched in the local retail market, with strong brand recognition and a long-standing physical presence across the country. These platforms have leveraged their extensive networks and customer bases to expand into ecommerce, offering convenient payment options, instalment plans, and robust logistics tailored to the local market. Their ability to provide a seamless omnichannel experience – blending in-store shopping with online services – has resonated well with Peruvian consumers.
In contrast, Mercado Libre and Amazon, while globally successful, face specific challenges in Peru. Despite being popular in other Latin American countries, Mercado Libre encounters competition from the established local giants. On the other hand, Amazon lacks a significant localised presence and faces logistical barriers, including higher shipping costs and longer delivery times. Peruvian consumers often prefer local platforms with faster, more reliable delivery and local payment options such as instalment plans, which international platforms have not fully embraced. These factors contribute to the dominance of domestic platforms in the Peruvian market.
As Peru’s ecommerce industry grows, the role of cross-border payments is also becoming more significant, adding another layer of complexity to the payment landscape.
Cross-border payments are a burgeoning segment of the Peruvian ecommerce landscape. Currently, 44%2 of ecommerce transactions involve cross-border purchases, primarily from the US and China:
Use of international payment processors: PayPal, PayU, EBANX, dLocal, and Rebill are the main cross-border payment processors in the country.
Rising demand for foreign products: electronics and fashion items are the most purchased goods via cross-border ecommerce.
Growth trends: cross-border transactions are expected to grow by a 21% CAGR from 2023-2027, as more Peruvians shop for international brands online. However, growth has been slower due to high shipping costs, long delivery times, and concerns that international marketplaces may sell second-hand items or be involved in scams. As we look toward the future, government-led regulatory initiatives will further influence the trajectory of Peru’s payment landscape.3
The Peruvian government is actively working to shape the future of payments through a series of regulatory reforms aimed at promoting innovation and financial inclusion:
Open Banking framework: expected to launch in 2025, this framework will enable greater integration between banks and fintech, promoting competition and innovation.
Digital payments law: aimed at encouraging the adoption of digital payments, this law will incentivise businesses to accept electronic payments and consumers to use them.
These regulatory changes will likely accelerate Peru’s digital transformation, fostering a more inclusive, secure, and innovative payments ecosystem.
1PCMI analysis 2PCMI E-Commerce Data Library, 2024 3PCMI, analysis 2024
Valentina is a political scientist based in Medellín, Colombia, with extensive experience managing over 30 projects across industries such as payments, mining, energy, logistics, beauty, and healthcare since 2019. Specialising in public policy analysis, socio-political risk, corporate social responsibility, and business development in different sectors, she is known for her dynamic approach, leadership, and adaptability. Valentina excels in comprehensive market intelligence, strategic social management, and collaborative work with communities, strengthening decision-making processes in emerging markets. Passionate about ancient history, peace, and conflict studies in Colombia.
PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to global corporations, having executed over 500 client engagements in the payments industry since 1991. PCMI performs custom strategic engagements, including market sizing, opportunity benchmarking, market-entry, customer insights, and more, covering over 50 global markets in the Americas, EMEA, and APAC regions.
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