Lindsay Lehr, Managing Director at Payments and Commerce Market Intelligence (PCMI), discusses the diversity of Latin America’s payments ecosystem, focusing on the rise of APMs in ecommerce.
A2A payments in Latin America are often seen as a model for successful adoption. What challenges remain, and how are they being addressed?
Pix is successful in Brazil due to a unique mix of specific factors, including an existing efficient RTGS system, an innovative central bank with strong leadership, mandatory interoperability, participation by financial institutions, and free P2P transactions, as well as sufficient economics built into the system to incentivise banks and fintechs to embrace it, among many others. These factors are present, to a varying degree, in other markets in Latin America. Colombia has followed the Brazilian model very closely and is likely to follow a similar path to Brazil. A2A adoption is comparatively lower in Mexico, Chile, Ecuador, and other markets, where the pain points are diverse. The main challenge – and essential ingredient – is a fully empowered central bank and buy-in from the main commercial banks in the market. In the meantime, multiple private and wallet-based A2A solutions are proliferating, but they will not reach the same level of penetration and impact as a fully centralised solution like Pix has.
How should ecommerce businesses navigate the region’s fragmented wallet landscape?
The region’s wallet landscape is fragmented with respect to P2P payments and other basic transactions, but so much more when it comes to ecommerce. Very few wallets have built out integrations with ecommerce merchants, and if they have, they tend to be used for niche solutions like gaming or other digital goods. Ecommerce merchants should do their due diligence to find the one or two digital wallets in each market that have a large representation for ecommerce purchases in their vertical (not just digital transactions). It is also recommended to identify the top wallets in each market from a user adoption perspective and to monitor how those wallets are planning an entrance into ecommerce, for eventual strategic partnerships.
Are smartphone-enabled payment methods replacing or complementing traditional POS card payments in the region?
To an extent, yes, depending on the market, although I would say that the adoption of mobile payments has cannibalised cash more than physical card payments. QR-enabled Pix is certainly replacing some of the physical POS volume in Brazil, although the impact is mostly felt in ecommerce and on cash volumes. Colombia has a high adoption of QR codes, and this will be accelerated with the advance of Bre-B, the newly launched fast payment system. Argentina has also seen high adoption of QR codes and mobile transfer solutions, which have rapidly cannibalised cash and some physical card transactions. In Peru, Yape and PLIN have made huge advancements in converting cash transactions to digital. However, we won’t see major impacts on traditional POS transactions until these wallets and A2A solutions become enabled at major retailers (big box supermarkets and the like) through integrations with their ERP and other internal systems.
QR code payments are projected to see significant growth in Latin America. What is fuelling this trend?
Increasing and often mandated interoperability, 80%+ smartphone penetration, and growing merchant adoption are all fuelling the growth of QR codes. Small merchants are increasingly preferring QR solutions because they are attached to wallet or RTP rails that are low-cost or free, and offer instant liquidity, both of which are major advantages over card acceptance. Increasing consumer adoption is also leading small merchants to accept these methods more consistently. However, many markets are behind this trend, specifically Mexico, Chile, Central America, and the Caribbean, where interoperability is lagging.
What criteria should global ecommerce companies consider when choosing which payment methods to offer in LATAM?
The share of total ecommerce expenditure is the best proxy for determining which payment methods merchants should accept currently, while adoption penetration is the best proxy for understanding which payment methods will become relevant for ecommerce in the future.
This editorial piece was first published in The Paypers' Global Ecommerce Report 2026, which provides a complete overview of key trends and strategies to help businesses worldwide succeed. Download your free copy today to explore in-depth insights on global ecommerce trends, the latest innovations in payment solutions, and strategies to stay ahead in a competitive market.
About Lindsay Lehr
Lindsay Lehr is the Managing Director of Payments and Commerce Market Intelligence (PCMI), a strategy consultancy specialising in the global payments industry. Since 2012, Lindsay has managed over 400 client engagements in the payments industry, growing her team of one to over 50 consultants based across the US, Latin America, Europe, Asia, and South Africa. Lindsay is a renowned thought leader in the payments space, advising the world’s most exciting companies, including card networks, global marketplaces, and payment platforms.
About Payments and Commerce Market Intelligence (PCMI)
PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to corporations, executing more than 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. Visit www.paymentscmi.com to learn more.
