Mastercard's new report highlights the key role of fintechs in driving financial inclusion in Latin America and the Caribbean

• Since 2017, Latin America has seen a 340% increase in fintech players in the financial ecosystem
• 75% of survey respondents claim fintechs have helped reduce their reliance on cash, making financial management more efficient

Today, Mastercard released the whitepaper “The New Era of Financial Inclusion in Latin America” that highlights how fintechs have been a key driver of financial inclusion within the region. The report draws insights from interviews with fintech companies and consumer surveys to spotlight fintechs’ latest impact on the region’s financial inclusion journey, from access to continued usage ¹.

With more 3,000 fintechs operating across 26 countries, the Latin America and the Caribbean region has seen a 340% increase in the number of fintechs since 2017². Beyond being a key instrument to increase account ownership, today digital financial services offer substantial advantages, with 72% of users reporting time savings, 59% experiencing better financial planning, and 53% gaining improved access to credit – all important elements on the journey to reach new levels of economic prosperity.

As digital payments continue to expand, cash usage remains dominant in the region with 40% of low-income respondents reporting that they pay more than half of their monthly expenses in cash, compared to 25% of high-income individuals. To tackle this, a majority of fintechs (80% to 90%) promote greater financial equality through digitally accessible solutions. Today, digital banks empower underserved populations, as low-income account owners (35%) are more likely to have accounts in digital banks when compared to high-income respondents (28%). In addition, more than half of respondents in Brazil (58%), Colombia (52%), and Peru (55%), say fintechs provided access to financial products previously unavailable to them.

Government support, greater internet and mobile penetration, and the rise of user-friendly financial solutions have all enabled fintechs to play a significant role in the expansion of financial inclusion in the region. Fintechs also have made significant advancements on consumer-facing educational initiatives as part of their efforts to build trust and address security concerns, which remains one of the largest barriers to adoption. As a result, fintechs have empowered low-income and young individuals with the knowledge to confidently engage with financial services.

The report highlights several key findings about current financial inclusion levels in Latin America, including:

• Popular financial tools. Debit cards and financial accounts are the most owned financial products, with over 80% of respondents having them. Credit cards (63%) and lines of credit (34%) follow in popularity.
• Improved quality of life. Respondents report that debit cards (50%) and credit cards (39%) have had the most positive impact on their financial quality of life.
• Reliance on cash. Four in 10 low-income respondents still pay more than half of their monthly expenses in cash.
• Rise of digital payments. While 63% of respondents continue to rely on cash for daily or weekly transactions, the use of digital payment methods is rising: 61% use debit cards, and 45% use credit cards for daily or weekly payments. This shift highlights a significant opportunity to further digitize payments across all income levels.
• Fintech accessibility. Nearly half of respondents said fintechs gave them access to financial products that were previously unavailable. In Brazil (58%), Peru (55%), and Colombia (52%), these rates are even higher. Over 28% accessed their first savings or deposit account through a fintech.
• Efficiency through innovation. Access to digital financial services helped 75% of respondents use less cash, 72% save time on transactions, and 59% plan their finances better.
• Crypto interest. Cryptocurrency adoption, while still emerging, has reached 12% of respondents, showing growing interest in alternative financial solutions.

"Digital financial platforms are not only accelerating financial inclusion in Latin America and the Caribbean, but they are also shaping the future of finance by providing innovative, sustainable solutions to a growing consumer base,” said Diego Szteinhendler, Fintechs, Digital Partners, Enablers and Commerce, Mastercard, Latin America and the Caribbean. "Moving forward, it’s essential that we continue to foster a competitive environment where these players thrive, bringing tangible benefits to consumers and businesses alike.”

The full whitepaper, The New Era of Financial Inclusion in Latin America, is available to download here.

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[1] Data collection occurred in September 2024 and involved online surveys with consumers in six countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. In total, 1,848 people answered the questionnaire. Companies interviewed for the study: Albo, Galileo, Gilgamesh Ventures, Inter, Ualá

[2] https://publications.iadb.org/es/publications/spanish/viewer/ Fintech-en-America-Latina-y-el-Caribe-un-ecosistema-consolidado-con-potencial-para-aportar-a-la-inclusion-fianciera-regional.pdf, accessed October 2024.

Scope and methodology of the research

Mastercard partnered with Payments and Commerce Market Intelligence (PCMI) to explore the role of fintechs in driving financial inclusion across Latin America. The study, conducted in September 2024, focused on six key markets: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The research involved collecting data through online surveys with 1,848 consumers from diverse demographic and socioeconomic backgrounds. This effort was complemented by five in-depth interviews with key players in the fintech ecosystem and thorough documentary research.