
Introduction
Digital wallets have quickly evolved from consumer novelties to essential business tools. Across Latin America, mobile wallets and instant payment systems are overtaking banks in the race to digitize transactions. In Brazil, for example, the Pix platform launched by the central bank has become a dominant force, processing 64 billion transactions in 2024 alone and driving a 56% year-over-year increase in B2B payment volume, which exceeded 1 trillion reals (about $178 billion) in December 2024. Similar trends are unfolding in Argentina, Colombia, and Mexico, where platforms like Mercado Pago have become household names and business staples
As more companies seek faster, more secure, and cost-effective ways to conduct cross-border and domestic payments, digital wallets are emerging as a game-changing solution.
The Rise of Digital Wallets in Latin America
Latin America has become one of the most fertile grounds for digital wallet adoption in the world. Fuelled by economic shifts, technological innovation, and demographic trends, digital wallets have evolved from consumer-centric tools into essential components of modern commerce, including B2B transactions. According to a recent study by Statista, over 300 million people in Latin America will be using digital wallets by 2026.
While much of this growth has been consumer-focused, businesses are now catching on. SMEs and large enterprises alike are leveraging digital wallets to streamline operations, reduce dependency on traditional banking, and tap into new markets.
Explosive Growth in Adoption
Over the past five years, Latin America has experienced double-digit annual growth in digital wallet usage. According to data from EBANX and Statista, digital wallets accounted for approximately 20% of e-commerce transactions in 2023, and this figure is expected to grow to over 30% by 2026.
Key drivers include:
- The COVID-19 pandemic accelerated digital payment adoption across all sectors.
- Smartphone penetration reached over 80% in countries like Brazil, Chile, and Argentina, creating the infrastructure necessary for mobile-first solutions.
- Fintech investment in the region exceeded $8 billion in 2022 alone, with a strong focus on digital banking and wallet platforms.

1. Economic and Social Catalysts
Digital wallets are addressing longstanding financial challenges in the region:
- High unbanked populations: Over 40% of adults in Latin America do not have access to traditional banking services, especially in rural or informal economies. Digital wallets offer a fast, low-barrier alternative.
- Currency volatility and inflation in countries like Argentina and Venezuela have pushed individuals and businesses to adopt USD-linked wallets or stablecoin-compatible apps as safer stores of value.
- Rise of gig and informal economies: Freelancers, marketplace sellers, and micro-entrepreneurs increasingly rely on wallets to receive payments and manage finances outside the traditional banking system.
2. B2B Use Cases Are Emerging
Historically, digital wallets were designed for peer-to-peer (P2P) and consumer-to-business (C2B) transactions. However, their evolution into the B2B space is accelerating, driven by:
- Cross-border trade: Businesses in Latin America are looking for faster and cheaper alternatives to traditional international wire transfers. Wallets like Yogupay and Bitso offer FX-friendly payment tools for international trading.
- Supplier and vendor payments: SMEs are adopting wallets to manage payments to suppliers, contractors, and remote teams, especially when operating in multiple currencies.
- Integration with invoicing and ERP systems: Some wallet providers now offer APIs and plug-ins that integrate seamlessly into accounting platforms, enabling businesses to automate collections and disbursements.
Leading Wallet Platforms in the Region
Several innovative fintech companies are spearheading digital wallet adoption in Latin America, many of which are expanding into the B2B space:
- Mercado Pago (Argentina): Initially launched for e-commerce buyers and sellers on Mercado Libre, now widely used for both retail and business transactions.
- PicPay (Brazil): With over 60 million users, PicPay has launched business accounts with POS tools, analytics, and payment scheduling features.
- Nequi (Colombia): Operated by Bancolombia, Nequi is increasingly targeting small merchants and microbusinesses.
- Yogupay (Multi-country): Tailored for international traders, Yogupay enables seamless cross-border transactions with multi-currency support.
- Bitso (Mexico, Argentina, Brazil): A crypto-enabled wallet facilitating B2B remittances and USD-backed transactions in volatile economies.
3. Government-Backed Initiatives Driving Growth
In some countries, public sector innovation is also fueling digital wallet expansion:
- Brazil’s PIX system: Launched by the Central Bank in 2020, PIX allows instant, 24/7 bank transfers and is integrated into many digital wallets, transforming both consumer and business payment behaviour.
- CoDi (Mexico): Promoted by the Bank of Mexico to reduce cash dependence and promote digital payments across the informal sector

Why Digital Wallets Matter in B2B Transactions
1. Speed and Efficiency
Traditional B2B payments, especially cross-border, can take several days to process. Digital wallets drastically cut transaction times, enabling near-instant fund transfers, which improves cash flow and operational agility.
2. Lower Transaction Costs
By bypassing traditional banks and intermediaries, businesses can reduce fees associated with wire transfers, currency conversions, and account maintenance. This is especially valuable for Latin American exporters and importers who deal with multiple currencies.
3. Financial Inclusion for SMEs
A large percentage of small and medium enterprises in Latin America remain underserved by traditional financial institutions. Digital wallets provide them with access to essential financial services, including payments, savings, and credit, often through simple mobile apps.
4. Enhanced Security and Transparency
Digital wallets use encryption and tokenization to secure transactions. Many also offer real-time tracking and reporting, which helps businesses maintain transparency and comply with local regulations.
Key Players Driving Innovation
Several digital wallet providers are leading the B2B transformation in the region:
- Mercado Pago – Initially focused on consumers, it now supports business payments and merchant services across Latin America.
- Yogupay – Offers cross-border payment solutions tailored to international traders and e-commerce businesses in emerging markets.
- DLocal – Facilitates B2B and B2C payments for global merchants entering Latin American markets.
- Pix (Brazil) – The central bank’s real-time payment platform has transformed digital payments for both individuals and businesses.
The Numbers: A Cashless B2B Future
The scale of this transformation is staggering. In 2023, Latin America recorded 21.6 billion cashless B2B transactions, with forecasts projecting nearly 20 billion more by 2028, a compound annual growth rate of nearly 14%. Today, 92% of small businesses in the region accept digital payments, underscoring the mainstreaming of these solutions. As digital wallets and real-time payment systems become the norm, cash is rapidly losing ground: in-store cash transactions dropped from 67% in 2014 to just 25% in 2024, with similar declines in e-commerce.
Key Trends Shaping B2B Digital Payments
- Mobile-First Mindset: With high smartphone penetration, Latin American businesses are embracing mobile payments for on-the-go flexibility and convenience
- Embedded Finance: Companies are leveraging embedded payment solutions to offer seamless, integrated financial experiences within their platforms
- Cross-Border Innovation: As businesses expand regionally, digital wallets and new standards like ISO 20022 are making cross-border B2B payments faster and more reliable.
- Data-Driven Growth: Digital payment platforms provide rich transaction data, empowering businesses to make smarter decisions and optimize their operations.

What’s Next for B2B Payments in Latin America?
The momentum behind digital wallets and real-time payments shows no signs of slowing. By 2030, digital payments are expected to account for nearly half of all in-store transaction value and two-thirds of eCommerce in the region. For B2B enterprises, this means:
- Faster settlement cycles and improved cash flow
- Lower costs and reduced administrative burdens
- Greater access to new markets and customers
- Enhanced security and compliance
Challenges to Overcome
While digital wallets are transforming the way businesses transact in Latin America, several key challenges still hinder widespread B2B adoption:
1. Regulatory Complexity and Fragmentation
Each Latin American country has its own financial regulations, central bank policies, and compliance requirements. For B2B digital wallet providers operating across borders, this means navigating a patchwork of legal frameworks. For instance:
- In Brazil, digital wallet services must comply with strict regulations from the Central Bank under its PIX system.
- In Argentina, frequent policy changes related to currency exchange and capital controls can affect wallet functionality.
- In Mexico, fintechs must be licensed under the Fintech Law, which has stringent AML (anti-money laundering) compliance demands.
This regulatory fragmentation creates operational friction for wallet providers and businesses trying to scale across the region.
2. Limited Interoperability Between Wallets and Payment Systems
Interoperability remains a significant hurdle. Many digital wallets are siloed, built for specific user bases, banks, or countries, making it difficult for businesses to send or receive payments across platforms seamlessly.
For example, a business using a wallet integrated with a local bank in Peru may struggle to transact with a counterpart using a wallet tied to Brazil’s PIX system. This lack of standardization limits the scalability and efficiency of digital B2B transactions.
3. Digital Infrastructure and Internet Access Gaps
In rural and less developed areas, reliable internet connectivity and access to smartphones remain limited. While urban centers like São Paulo and Mexico City are rapidly adopting fintech, remote regions lag in:
- Broadband penetration
- Access to digital banking education
- Availability of support services in local languages
This digital divide can exclude a significant portion of small businesses from fully participating in the digital payment ecosystem.
4. Cybersecurity and Fraud Risk
The rise in digital transactions has attracted more cybercriminals. Phishing attacks, account takeovers, and transaction fraud are growing concerns for both wallet providers and business users. Unlike consumer wallets, B2B wallets often handle larger sums, making them more attractive targets.
Companies must invest in robust cybersecurity measures, such as:
- Two-factor authentication
- Biometric logins
- End-to-end encryption
- Real-time fraud monitoring
However, many SMEs lack the resources or knowledge to implement such protections on their own.
5. Low Financial Literacy Among SME Owners
A significant portion of Latin America’s SME sector is operated by individuals with limited experience in digital finance tools. Misunderstandings about how digital wallets work, fears of fraud, or confusion over compliance requirements can delay adoption.
Wallet providers and fintechs must engage in localized financial education initiatives, offer customer support in local languages, and simplify onboarding processes to bridge this gap.

Solutions and Opportunities
Despite the challenges facing digital wallet adoption in B2B transactions, the Latin American fintech ecosystem is demonstrating resilience and creativity. Here’s how businesses, regulators, and fintechs are turning these obstacles into opportunities:
1. Regulatory Innovation and Regional Collaboration
Several governments and central banks in Latin America are actively modernizing their regulatory frameworks to encourage digital payments:
- Brazil’s PIX system is a standout example of regulatory innovation, offering an instant payment system that is open to fintechs and traditional banks alike. It has become a blueprint for other countries.
- Mexico’s CoDi (Cobro Digital) is a government-backed platform promoting mobile payments and reducing dependency on cash.
- Regional regulatory harmonization efforts through alliances like Mercado Común del Sur (MERCOSUR) and Pacific Alliance are slowly laying the groundwork for cross-border financial interoperability.
Fintech associations are also engaging regulators to shape policies that support innovation while ensuring security and consumer protection.
2. Growing Focus on Interoperability Standards
Industry-led initiatives are beginning to push for greater interoperability between wallets, banks, and payment processors:
- Open Banking frameworks are gaining traction in countries like Brazil and Colombia, enabling secure API integrations between financial services.
- Partnerships between fintechs and traditional financial institutions are helping expand reach while maintaining compliance and security.
- Blockchain-based payment networks are being explored to facilitate seamless cross-border B2B transactions with greater transparency and lower costs.
These efforts are gradually breaking down silos, allowing businesses to interact across platforms and borders more efficiently.
3. Infrastructure Investments and Mobile Penetration
Governments and private companies are investing in digital infrastructure to bring connectivity to underserved regions:
- 5G rollouts and rural broadband programs are increasing internet access, which supports mobile wallet use even in remote areas.
- Affordable smartphones and digital literacy campaigns are helping rural SMEs join the digital economy.
This infrastructure growth represents a massive opportunity to bring millions of previously unbanked or underbanked businesses into the formal financial system.
4. Advanced Fraud Prevention Technologies
Wallet providers are increasingly integrating AI and machine learning into their fraud detection systems to monitor transactions in real-time and flag suspicious behavior.
Some innovations include:
- Behavioral biometrics that detect unusual user activity
- Geofencing and device fingerprinting to confirm transaction authenticity
- Tokenization and dynamic CVVs to secure card-on-file transactions
Additionally, many providers now offer fraud protection insurance for business clients, which boosts trust and adoption.
5. Localized Financial Education and Onboarding Support
Fintech companies are investing in user education, recognizing that adoption depends on trust and usability:
- Many platforms now offer multilingual support, especially in indigenous and local languages.
- Gamified training modules, video tutorials, and simplified onboarding processes are helping SME owners learn how to use wallets effectively.
- Some fintechs have partnered with NGOs and development agencies to provide in-person digital skills workshops for rural entrepreneurs and women-led businesses.
This educational push is essential for scaling digital payments inclusively and sustainably.

Conclusion
As digital transformation continues to reshape business processes, digital wallets are poised to play a central role in Latin America’s B2B ecosystem. Forward-thinking businesses that adopt these tools early stand to gain a competitive edge through faster transactions, lower costs, and greater access to underserved markets.
In a region defined by both challenges and opportunities, digital wallets are not just a trend, they are a revolution in how businesses operate and grow, and they’re a strategic opportunity for businesses in Latin America to leapfrog traditional banking limitations.
Businesses that embrace these innovations are not only streamlining their operations but also positioning themselves for growth in an increasingly digital, connected, and competitive marketplace. By addressing the current challenges through regulatory collaboration, technological advancement, and grassroots education, the region is well-positioned to build a more inclusive, efficient, and globally connected B2B payment ecosystem. The future of B2B payments in Latin America is fast, frictionless, and digital.