As we delve into the transformative journey of digital payments in rising markets, a powerful wave of innovation and inclusion is reshaping how people and businesses engage in these economies. While the global payments landscape often features broad themes of digitisation, some regions are experiencing accelerated, distinct evolutions within this movement.
Latin America, Africa, and India each present unique narratives in the shift toward digital commerce, with local payment methods like Pix, UPI, PSE, and mobile money making seismic impacts.
In this exploration, I’ll touch on key innovations that we at EBANX, a global technology company specialising in payment services for rising markets, see as vital to the growth and development of these regions.
Localised payment innovation: more than just alternatives
As new payment technologies evolve, the need to adapt to specific markets has become non-negotiable for global businesses. The one-size-fits-all model no longer holds for payment systems. Each region — indeed, each country – has unique user habits, regulatory environments, and cultural preferences that demand tailored solutions.
In Latin America, Pix in Brazil and PSE in Colombia demonstrate how tailored digital payments can make digital commerce more accessible and inclusive. Pix, introduced by Brazil’s Central Bank in 2020, has expanded dramatically, growing to nearly half of Brazil’s digital payment transactions in just a few years and being part of the daily lives of 90 per cent of the adults in the country.
According to Payments and Commerce Market Intelligence (PCMI) data analysed by EBANX, Pix is set to surpass credit cards as the most widely used payment method in Brazilian digital commerce by next year. The projection for 2025 estimates that Pix will account for 44 per cent of all value transacted in online purchases in Brazil, an increase of four percentage points, while cards will have a 41 per cent share.
Additionally, data from the Brazilian Central Bank indicates Pix has integrated 71.5 million users into the financial system in the first two years of operation. This is a potent example of how a payment method can drive financial inclusion and consumer convenience through seamless, quick, and free transfers.
Similarly, in Colombia, PSE (Pagos Seguros en Línea) is a preferred gateway for many people, especially those new to digital commerce. We see its wide use in retail as well as by new consumers venturing into e-commerce. This is not merely about introducing a different payment option; it’s about creating a payment experience that meets people where they are, encourages trust, and simplifies their journey into digital engagement.
Internal data from EBANX show that companies accepting Pix in digital commerce experience a 16 per cent increase in revenue and a 25 per cent growth in the number of clients. In Colombia, PSE brought in more than half of the new customers for two of EBANX’s online retail merchants over a three-year period. These figures highlight the importance of global companies having tailored payment strategies for each region.
With expertise in those local solutions, our operation includes over 200 payment methods, having connected more than 150 million consumers to global brands. Within the Pix system alone, we currently process payments for over 33 million users, 20 per cent of all Pix users in the country.
How “digitised cash” is driving digital and financial inclusion globally
In regions like Africa, mobile money has become a cornerstone of digital finance, leapfrogging traditional banking infrastructure and providing millions with instant access to digital commerce. According to the last EBANX annual study, Beyond Borders 2024, since 2007, Kenya has been at the forefront of mobile money innovation.
This platform allowed people, for the first time, to transfer funds using a basic mobile phone without requiring a bank account or internet access, thanks to SIM card-based technology. Today, more than 90 per cent of Kenyan adults have a mobile money account, according to a GSMA consumer survey, underscoring this technology’s widespread adoption and impact over the past 15 years.
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With nearly half of digital commerce in Kenya relying on mobile money, the implications for increased access are profound. This shift has provided an economic lifeline for those previously excluded from financial services, especially in rural areas where banking infrastructure is limited or nonexistent.
In Egypt, cash remains the dominant transaction method, accounting for a large portion of the digital commerce volume: 73 per cent of Egyptians are unbanked, and only 22 per cent have a credit or debit card, making the country heavily reliant upon cash transactions, based on Beyond Borders 2024.
However, innovative solutions like QR code-based payments and cash vouchers are paving the way for more inclusive digital finance. The hybrid approach, digitising cash transactions and ensuring that consumers can participate in digital commerce even without bank accounts, is a significant step toward financial inclusion. The continued push to blend cash-based solutions with digital technology signals a path forward for Egypt and other cash-reliant economies in Africa and beyond.
India’s digital payment evolution: from cash to UPI
India’s journey in digital payments has been equally transformative. Over the past decade, UPI (Unified Payments Interface) has shifted the nation’s payment culture from predominantly cash-based to digital-first. With UPI adoption growing exponentially since its introduction in 2016, India has emerged as a leader in real-time digital payments, outpacing traditional cards and attracting a wide range of businesses.
Currently, UPI represents 64 per cent of all digital payments in India, and the share is growing. From April 2022 to March 2023, payments in retail through UPI amounted to US$1.6 trillion, the Beyond Border 2024 report shows. In a market where nearly half of consumers lacked banking access just a few years ago, UPI now drives over 55 per cent of digital commerce, according to PCMI, transforming consumer habits and the business landscape.
An important factor is India’s successful integration of various payment methods within a single platform. UPI’s ability to merge credit cards, debit cards, and bank accounts into one payment system is a powerful example of hybrid payment solutions that adapt to the consumer’s needs.
As more consumers engage with digital transactions and become financially included, the future of UPI—and by extension, India’s digital economy—holds vast potential. We see the potential for similar solutions in other rising markets, where diverse payment methods are united under a single, consumer-centric platform.
Blending old and new: hybrid payment models and digital wallets
In many rising markets, particularly those transitioning from cash-based economies, hybrid payment models bridge the gap between traditional and digital payment systems. The integration of alternative payment methods (APMs) with credit and debit cards allows consumers to move between digital and physical transactions seamlessly.
In Latin America, credit cards still hold a strong place, especially in SaaS, streaming services, and other subscription-based industries. However, hybrid models—where cards and instant payments coexist—have found their sweet spot. For instance, in Tanzania, mobile money services like M-Pesa now integrate with Visa, providing a virtual card for digital commerce, while in India, UPI enables credit card payments within an instant payment framework.
For global companies entering these markets, such hybrid models present a compelling strategy to cater to a diverse range of consumer habits. Whether it’s enabling instalment payments, auto-renewals, or other flexible models, hybrid solutions create a pathway for people at varying stages of financial inclusion to participate in the digital economy. The flexibility to use a familiar method, like mobile wallets or credit cards, in combination with instant payment options, meets consumers where they are and builds trust.
The hybrid aspect is also evident in how cards and alternative payment methods adopt each other’s features. For example, Pix Automático is incorporating recurring payment capabilities, a feature initially associated with cards. Set to launch in June 2025, Pix Automático aims to bring recurring payment options to all users in Brazil, enabling them to use Pix for subscriptions to streaming services, SaaS products, and other subscription-based offerings.
Enabling global growth through local payment expertise
Emerging markets across Latin America, Africa, and India are not only rising but defining new standards in global commerce. These regions offer a vast, eager customer base for digital commerce—one that is often overlooked due to perceived complexities around local payments and regulatory hurdles.
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For example, the e-commerce market in Latin America is expected to grow 20 per cent in volume between 2023 and 2027, with a projected volume of more than US$1 trillion, according to PCMI data analysed by EBANX. Our experience in these markets tells us that while the pathways to growth are unique and sometimes intricate, the payoff is considerable. Businesses that invest in understanding local payment ecosystems and work with experienced partners can achieve lasting success in rising markets.
For global businesses, understanding these payment trends and customising their approaches is crucial for growth. Payment methods are no longer simply transactional tools; they have become strategic enablers of customer engagement and retention. Take Brazil, for example, where Pix is rapidly becoming the default choice for online purchases.
The simplicity and speed of Pix encourage more frequent purchases, and many merchants now offer discounts to consumers who pay with Pix, further incentivising its use. In India, the integration of UPI with various banking and credit systems facilitates broad, deep engagement with customers, boosting their loyalty and willingness to transact digitally.
At the heart of this payment evolution lies a powerful message: payment preferences matter. Local payment methods are not “alternative” —they are mainstream. And as businesses look to grow globally, an understanding of local payment trends is as essential as understanding local languages or cultural norms.
Toward an inclusive, connected digital economy
The rapid evolution of payment landscapes in Latin America, Africa, and India speaks to a broader, hopeful vision of digital financial inclusion. The varied ways that people pay—and the increasing ease with which they can do so—point toward a connected digital economy that embraces both the banked and unbanked, narrowing socio-economic gaps. Payments are no longer a passive component of commerce; they are now active agents in societal transformation.
In this new global landscape, businesses willing to adapt and innovate can drive more than just revenue growth—they can foster a more inclusive economy. The journey of rising markets is complex and, at times, unpredictable, but it’s also a story of resilience, opportunity, and the power of technology to bridge divides.
As we look to the future, the challenge remains for global companies to embrace this diversity in payments with agility and respect. The rewards—both financial and societal—are immense. The future of payments in Latin America, Africa, and India is not just a shift in numbers but a pathway to progress itself. And for those who are ready to engage thoughtfully, it offers a chance to be part of a profound, positive transformation that is redefining the world’s digital economy.
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