Americas: regional analysis of payments and ecommerce trends

In this article, Estera Sava, Senior Editor at The Paypers, contextualises global developments, zooming in on North and Latin America to help both merchants and solution providers better navigate the payments and ecommerce space.

In 2025, the global payments industry stepped away from volume and focused more on how value moves. McKinsey’s 2025 Global Payments Report showcases a slowed payments revenue growth (4% in 2024, down from the 7% average between 2019 and 2024), driven by high interest rates, the macroeconomic environment, a shift to lower-yield rails like account-to-account (A2A) payments and digital wallets, as well as ongoing fee pressures.

Global payment trends

Rail innovation, programmable money, and Embedded Finance are expected to make up the next phase in the global payment evolution. We see wallets scaling across regions, while real-time and account-based flows continue to gain share. Many developments are happening in this space, but some have been taking centre stage more than others, with direct applications already in circulation:

• Stablecoins and tokenization: although in their incipient stage in many markets, stablecoin issuance doubled in 2024, and regulated frameworks are beginning to form in regions like the US, the EU, and APAC.
• AI, decisioning, and orchestration: generative AI (GenAI) and advanced modelling are used to reduce fraud, optimise routing, and automate reconciliation.
• Real-time rails: consumers and businesses alike expect instant money movement, pushing for investment into real-time payment (RTP) and settlement systems.
• Interoperability, Open Banking, and Embedded Finance: the expansion of A2A payments, modular stacks, and API-first design is reshaping merchant expectations.

In this context, the Americas present both opportunities and challenges. Mature markets need to evolve to avoid being bypassed, while emerging markets must ensure advancement without putting themselves at risk.

The Americas’ place in the global matrix

Globally, consumer behaviour and expectations are driving demand for frictionless checkouts, multi-rail options, seamless transitions between in-store and online experiences, and embedded payments. In the Americas, cross-border commerce is on the rise, prompting an industry focus on settlements, FX, rail interoperability, and compliance.

In 2024, Latin America led in terms of payments revenue growth (11%), surpassing North America (5%). Of course, when we consider volume and technological maturity, the US and Canada lead the way. These two more mature markets are busy modernising systems, navigating regulatory pressures, and rolling out real-time rails – while Latin America remains a rapidly growing region, seeing a wave of payment innovations: Pix in Brazil, new RTP deployments, growing financial inclusion, and promising fintech hubs.

Below, we discuss the themes that stand out for the US, Canada, Brazil, Mexico, Colombia, Argentina, Chile, and Peru.

North America: ecommerce trends and payment innovation

The US – a glimpse at all things payments and the in-between

The US remains one of the leading forces in global ecommerce, with consumers expecting seamless, multi-channel experiences: mobile checkouts, one-click payments, saved credentials, and integrated loyalty. There’s a prevalence of subscription models and recurring billing, and Buy Now, Pay Later (BNPL) is a common alternative payment method, integrated into the checkout of multiple merchants.

Source: The Paypers, based on PCMI data

Merchants are also taking a new approach, no longer looking at payments as a cost centre, but as a differentiation lever. Along with PSPs, they are embedding orchestration layers to route transactions across acquirers, fallback rails, alternative rails (e.g., A2A), and wallets, based on cost, approval probability, latency, and user preference.

What was once novelty is now becoming a standard design pattern: open APIs, modular stacks, and data-rich flows.

Rail transformations: the implications of FedNow and the focus on reconfiguring back-office infrastructures

The launch of FedNow changed expectations on settlement, liquidity, and reconciliation. Legacy back-office systems (designed around batch, float, and delayed settlement) must be re-engineered to support real-time flows.

Following its inception in July 2023, FedNow’s adoption accelerated, yet the older RTP network operated by The Clearing House still dominates. However, RTP amounts for a fraction of US electronic payments, well behind Asia, Europe, and Latin America, and adoption remains selective and gradual.

High-volume merchants, marketplaces, and online platforms are expected to adopt RTP for disbursements, subscription flows, or merchant payins. On the consumer side, the flows will initially remain card-centric. In time, hybrid models are expected to dominate.

For merchants and PSPs, these trends mean preparing architectures that can handle hybrid flows, settlement fragmentation, and real-time reconciliation pressure.

Regulations, crypto, and Open Banking

Compared with other global initiatives, in the US, regulation and its implications remain among the hardest to forecast.

Looking at crypto, ‘The new crypto rulebook: how US regulation is taking shape’  article published on The Paypers outlines how evolving classification, reserve requirements, and oversight of stablecoins, token rails, and crypto custody are creating both risk and opportunity. Regulatory clarity has been much needed, especially with the rising adoption of stablecoins, prompting the industry to react accordingly.  The US is set on building a regulatory framework that matches the fast adoption of all things crypto, and initiatives like the GENIUS Act, the White House’s Digital Assets Report, and efforts from the SEC and CFTC are living proof of that.

Open Banking is also making waves. Disputes over bank data access, monetisation, and regulation have led to moves like Visa shuttering its US Open Banking arm. The Consumer Financial Protection Bureau is revising rules governing consumer data sharing, which could reshape how fintechs, PSPs, and banks interact.

Moreover, tariffs and trade policy add complexity to the ecommerce landscape. Merchant platforms must account for import duties, customs, cross-border payment friction, FX risk, and shifting trade relationships, especially those operating internationally.

Major challenges

Margin compression, regulatory uncertainty, elevated fraud risk, and architectural complexity all loom over the industry. For merchants and PSPs alike, the ability to pivot among rails, embed intelligence, and manage operational risk is becoming more of a competitive advantage.

You can read a deep dive into the US market as part of The Paypers’ country series articles.

Canada – skating to where the puck is going

Worldwide, tech is advancing payment choice, whether we talk about ecommerce or GenAI, and Canada is no exception – consumer purchasing behaviour and ecommerce preferences illustrate this clearly.

So, where is it all headed, and what is left behind in payments? We’ll take a quick look at this below.

Market insights and consumer behaviour

In 2024, Canada’s payments volume reached CAD 12.2 trillion, with credit cards accounting for roughly a third of all transactions. Ecommerce adoption continues to accelerate, and contactless and digital wallets are rising steadily.

Consumer behaviour mirrors many mature markets: omnichannel expectations, subscription models, cross-border purchases (especially with US-based vendors), and demand for frictionless checkouts. There is still, however, an urban–rural divide that constrains reach in parts of the country.

Source: The Paypers, based on Payments Canada data

Canada’s Real-Time Rail (RTR) – progress and implications

Canada is actively building a Real-Time Rail (RTR), with its infrastructure over 50% complete as of early 2025 and initial testing already commencing. Payments Canada plans to launch the service with capabilities for ISO 20022 messaging, always-on settlement, and a centralised fraud mitigation capability integrated from the onset.

Moreso, the organisation is preparing new potential member participants for the RTR. On the cusp of the amendments to the Canadian Payments Act (CP Act) and the regulation under the Retail Payments Activities Act (RPAA), which will open up membership eligibility and system participation to PSPs, credit union locals, and certain clearing houses, Payments Canada seeks to ensure these new entrants’ readiness for the RTR ahead of its launch. Part of their efforts includes establishing that potential member participants understand the steps to membership, the participation requirements, as well as the technical and operational ones needed to operate in a 24/7 payment environment, together with the benefits of the RTR.

For merchants and PSPs, the transition will translate into rearchitected liquidity, reconciliation, and error-handling systems. Hybrid models that combine legacy and real-time rails will coexist for the time being, whereas cross-border integration must be accounted for in architecture, settlement design, and FX.

Regulation, innovation, and positioning

Evolving regulations and industry policies are laying the ground for new ways to pay, transfer money, and compete both locally and internationally.

Apart from the changes to the CP Act under the RPAA, which underlines Payments Canada’s mandate, public policy objectives, and membership eligibility, an Open Banking debate (Consumer-Driven Banking Framework) is also underway. While the technology has been gaining traction in other regions of the world, in Canada, the discussions around it have not yet been finalised; however, fintechs are positioning for API-first and modular integration.

We are also seeing an increased usage of AI in fraud, routing, and customer intelligence. Only time will tell how Canada’s efforts will materialise into advanced payments and push for more competition.

You can read a deep dive into the Canadian market as part of The Paypers’ country series articles.

Latin America – trends, country close-ups, and cross-border prospects

In 2025, Latin America (LATAM) sits at the frontier of payments innovation. While deep, structural challenges remain, RTP rails like Pix (Brazil) and projects like Bre-B (Colombia) are catalysts for a transformation that other regions should closely watch.

So, what sets this fragmented landscape apart, and which developments have been the talk of the town in 2025? Below, we’ll try to illustrate some of the most relevant aspects of LATAM’s payments and ecommerce industries.

Looking at consumer behaviour, PCMI reports that 60% of consumer expenditure is electronic, with cash use falling to approximately 37%. Cash is clearly no longer king. Cards follow – credit and debit each comprise 12% –, instant A2A payments sit at around 15%, whereas traditional non-instant transfers make up 22% of the payment methods most in use. Moreso, Pix P2M is expected to surpass credit cards as new features are introduced.

Source: The Paypers, based on PCMI data

The region stands out due to its highly localised payment priority differences:

• Mexico’s SPEI growth and its usage, along with that of cards, are pushing for digitalisation.
• Colombia’s Bre-B launch will not only enhance competitiveness and efficiency in reducing card dependency but also increase financial inclusion.
• Argentina’s deregulation will most likely push for business growth, increase dollar-based transactions, and expand cross-border and debit card/digital wallet payments.
• Chile’s contactless and wallet strength is enabling self-service, one-click ecommerce, and software-based acceptance, pushing digital wallets to the top of payment method preferences.
• Costa Rica’s SINPE Móvil growth.

While each country in this space sets itself apart in different ways, there are, however, some similarities to be considered. The first one that emerges is the importance and increased reliance on A2A payments. Apart from the summary above, this is further illustrated by PCMI and EBANX’s Beyond Borders 2025 report, which projects that Brazil’s Pix Automático (Pix’s capability for recurring payments) could move over USD 30 billion in its first two years, capturing around 12% of all Pix volume by 2027. Colombia is also discussed, and its solution for account-based transfers, PSE, already makes up 34% of digital commerce and 31% of all online payments. The launch of the real-time rail, Bre-B, is thought to further contribute to expanding this share.

While LATAM is increasingly seen as an opportunity-rich market, some risks loom. The 2025 Latin America Payments Outlook (The Good, The Bad & The Ugly) series from PCMI lays bare structural challenges, such as a large informal economy, fraud and identity risks, and the constraints of uneven infrastructure and regulation.

Let’s look a bit closer at some countries that have been making the rounds in discussions centred on payment developments.

Brazil

Brazil remains the poster child of the evolution of LATAM payments.

Source: The Paypers, based on PCMI data

Pix’s growth has been meteoric, and its integration into ecommerce and daily life is deepening. Earlier projections expected the payment method to surpass credit cards in Brazil’s online payment value, hitting 44%. It has achieved deep consumer penetration, significant volume scale, and merchant adoption, disrupting cash, bank transfers, and card rails.

Pix’s next frontier lies in recurring payments and instalments (Pix Parcelado), which align with Brazilian consumer behaviour and threaten the dominance of traditional payments.

Still, Brazil is not immune to fraud vectors, identity vulnerabilities, and scaling challenges. Brazil’s ‘Pix hits a wall’ debate centres on regulatory containment and the US resistance to expansion. The Trump administration has opposed Pix's US footprint, complicating its cross-border ambitions.

The depth of fintech penetration, bank partnerships, and regulation will determine the next leg of growth in Brazil, yet all signs point to fertile grounds for innovation and advancement.

You can read a deep dive into the Brazilian market as part of The Paypers’ country series articles.

Source: The Paypers, based on PCMI data

Mexico

In Mexico, while digital rails are present, overall, the market is hybrid. SPEI serves as the backbone for interbank transfers. CoDi (QR-based overlay) is nascent, but growing incrementally, while wallets like Mercado Pago and cards still dominate the ecommerce payment mix. Although Mexico’s ecommerce growth is structural, inclusion, regulatory clarity, and cross-border competitiveness remain hurdles.

Cross-border trade and tariff regimes also intersect with payments, making logistics, FX, and payment structuring strategic levers.

You can read a deep dive into the Mexican market as part of The Paypers’ country series articles.

Source: The Paypers, based on PCMI data

Colombia, Argentina, Chile, and Peru

Colombia is preparing for Bre-B, its own real-time rail system, to deepen account-based transfers. Currently, PSE underpins many ecommerce flows, accounting for around 31% of online transaction volume, while A2A transfers as a whole account for 34%. The introduction of Bre-B is expected to further contribute to the expansion of this share.

Argentina is witnessing a widespread adoption of wallets and QR payment rails, often surpassing the use of cards. The country’s deregulation and dollar-based transaction initiatives may catalyse cross-border flows, while further pushing for debit card and digital wallet expenditure.

Meanwhile, Chile and Peru are leaning into contactless-, QR-, and software-based acceptance. Chile’s nearly full contactless penetration enables rapid digital adoption, whereas Peru’s wallet growth is backed by banking and fintech pushes. Discover more on The Paypers’ country series analysis for Chile and Peru.

Source: The Paypers, based on PCMI data

A look at LATAM’s approach to cross-border developments and financial inclusion

Fragmentation is a definitive trait of LATAM, one that also remains the primary challenge. Each market has different regulations, currency risks, banking laws, and identity architectures. Merchants rely heavily on correspondent banking, remittance networks, and foreign exchange bridges for cross-border payments, which is a challenge for smaller players who are strongly impacted by payment fees. A recent Mastercard and PCMI study highlights that SMEs in Latin America pay extremely high fees in cross-border payments; small payments ( e.g., USD 250) often incur 20–30% in costs, depending on the country of destination, and delays range between 4–10 days. With SME’s accounting for 98% of the region’s business fabric and 60% of employment, payment inefficiencies are highly poised to disrupt the supply chain and threaten key growth opportunities.

Moving on to our next topic, financial inclusion is a top priority for LATAM. Many consumers lack bank accounts or credit cards. Digital rails like Pix, real-time transfers, and wallet-based flows are expanding this access, while fintech hubs seek to disrupt the space. Identity, fraud, Embedded Finance, and payment rails are their canvas for innovation.  Startups are actively exploring cross-border rails, stablecoins, AI-enabled routing, and localised payment services.

AI, modular APIs, and identity resolution are vital supports. As RTP volumes increase, A2A fraud, money mule networks, synthetic identity, and account takeover risk intensify. Shared fraud utilities, identity graphs, and cross-merchant data models are emerging as industry infrastructure to address these complexities and ensure ongoing readiness for fraud prevention and management.

North America vs. Latin America – comparative analysis

When placing North America and Latin America side by side, several themes stand out:

• Pace of RTP rail adoption: LATAM is closer to the global frontier in RTP use; North America is trailing relative to Europe or Asia.
• Margin pressure: mature markets face compression, forcing differentiation through experience, services, and efficiency. Emerging markets, although high-growth, contend with FX, infrastructure, and risk complexities.
• Cross-border tension: the US–LATAM corridor is strategically valuable but operationally complex.
• Regulation and identity: digital assets, data access, KYC/AML regimes, and identity frameworks are shaping who can compete in this space.
• Architectural flexibility: the ability to support multiple rails, route optimally, reconcile in real time, and manage exceptions is becoming a baseline.

Merchants and PSPs must think in rail-agnostic terms: the best payment system is not a single rail, but a layered, adaptive stack that matches cost, speed, acceptance, and UX.

Final thoughts

The Americas present a dynamic tapestry of payments and ecommerce developments.

In the US and Canada, modernisation is incremental, yet urgent: legacy rails must support real-time overlays, regulatory pressure will intensify, and value must shift beyond mere transaction throughput. In Latin America, the emergence of rails like Pix, real-time transfers, fintech platforms, and wallet-first design is recasting payments from the ground up.

Keep an eye out for The Paypers’ Country Analysis Series to deep dive into the payments and ecommerce specifics of important markets worldwide.

About the author

Estera Sava is a Senior Editor at The Paypers, bringing her expertise in content creation and editorial processes to the Payments & Commerce team. With a focus on the ever-evolving ecommerce payments landscape, she is actively involved in various high-impact projects and industry reports. Through her proactive approach and dedication, Estera helps drive the success of The Paypers' initiatives.