While digital wallets grow by 16%, traditional banking leaves its place to neobanks

Colombia is increasing its commitment to neobanks and moving towards a digital payment culture. This was determined in the XI Report on Trends in Payment Instruments by Minsait Payments, Minsait’s payment instrument subsidiary, in collaboration with International Financial Analysts (AFI). The study includes the vision of 225 executives and experts in the industry, as well as 4,800 interviews with the population. with bank From Latin America, Spain, Italy, Portugal and the United Kingdom.

The interviewed experts confirm the trend towards simultaneous use of several payment instruments, while looking to 2030, showing that there is a technical link between cards and payments from one account; Cash ranks third in the ranking, with only one in seven interviewees seeing it as the most widely used means of payment in 2030.

Cash is still the main means of payment in Colombia

During 2021, cards and other digital media became more relevant in Latin America and reduced cash engagement. However, in the Colombian case, the dynamics were different as cash remained the main payment method (28%).

followed by cardis seen as the main payment instrument by 23% of bank users. 6 out of 10 people declare that they have paid in the last month.

In other words, the use of alternative digital payment instruments, especially transactions made through wallets or aggregators, increased by 15% compared to last year.

Likewise, 5% declare to have used payment apps among individuals in the last month, making Colombia the third most popular payment method in Latin America.

The use of cash is still common in micropayments and small businesses that are more likely to accept alternative payment methods. In this sense, 68% of Colombians say they are forced to use cash on public transport, followed by small and medium businesses (66%), professional services for the home (44%), bars and restaurants (32%), and medical services. services and highways (31%), electricity bills (26%) and others such as supermarkets, entertainment, public administrations, hotels and airline tickets.

new banks

Traditional banks are starting to include new companies, especially in finance and payments. neobanks. In this sense, although for most of the countries surveyed the bank remains the institution with which most transactions are carried out, other types of institutions are increasing their presence in Latin America, particularly in Colombia and Brazil, where 61% and 64% are banks. 26% of the population in the bank is already operating with this new type of establishment, while also acting as the main operator for 26% of the population in both countries.

The above is explained not only by the large presence of such an institution, but also by age, as both Brazil and Colombia are younger groups that operate more with neobanks and identify them as their main financial allies. .

Payments via smartphone

The use of smartphones to send money, pay in physical stores and make online purchases is growing rapidly in all countries. The increasingly mobile user continues to evolve as this device continues to evolve into a wallet, a means of payment, and a channel for future purchases.

In the case of Colombia, the use of payment apps among individuals from mobile phones, used by 55% of the bank population especially to send money to friends, family or acquaintances, continues to increase, and these apps are people’s favorite form of payment. 16% of the population.

The use of smartphones for e-commerce shopping also continues to increase in Colombia, where 74% of Colombians report using a smartphone. Added to this is the increase in the frequency of online purchases made at least quarterly by 23% of Colombians.

Source: Lare Publica

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