Traditional banking gives way to new banks while digital wallets grow 16%

Colombia is increasing its commitment to new banks and moving towards a culture of digital payments. This was identified by Minsait Payments, a payments affiliate subsidiary of Minsait, in its 11th Report on Trends in Payments, in collaboration with International Financial Analysts (AFI). The study includes the insights of 225 managers and experts in the sector, as well as 4,800 interviews with residents banking From Latin America, Spain, Italy, Portugal and the United Kingdom.

Interviewed experts confirm the trend towards the simultaneous use of several means of payment, while looking to 2030, one in three points for a technical connection between cards and payments from the account; For its part, cash ranks third in the ranking, and only one in seven of those interviewed see it as the most used means of payment in 2030.

Cash remains the main means of payment in Colombia

During 2021, cards and other digital media have become more important in Latin America and criticism has reduced their participation. However, in the case of Colombia, the dynamics were different, where cash remained the main means of payment (28%).

followed by Card, which is considered by 23% of bank users as the main payment method. Although, six out of 10 announced that they had made payments with her in the past month.

In other words, the use of alternative digital payment methods has increased, especially transactions through wallets or aggregators, showing an increase of 15% compared to last year.

Similarly, 5% said they had used PPP payment apps in the past month, placing Colombia in third place in Latin America with the most users resorting to this payment method.

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The use of cash is still common in small payments and in small businesses, which are likely not to accept alternative means of payment. In this sense, 68% of Colombians say they are forced to use cash for public transportation, followed by small and medium businesses (66%), professional services for the home (44%), bars and restaurants (32%), and medical services. Utilities, highways (31%), utility bills (26%) and others such as supermarkets, entertainment, public administrations, hotels, and airline tickets.

new banks

Conventional banks are beginning to make way for new companies involved in finance and payments, in particular new banks. In this sense, although the Bank continues to be the entity with which most operations are carried out in most of the countries studied, other types of entities are increasing their presence in Latin America, especially in Colombia and Brazil, where 61% and 64% of the population Bank operators are already working with this new type of entity, at the same time assuming the role of the main operator for 26% of the population in both countries.

The foregoing is explained not only by the large presence of this type of entity, but also by age, since in both Brazil and Colombia it is the younger groups that work with the new banks to a greater extent and consider them their main financial allies. .

Smartphone Payments

Smartphone usage for sending money, payments in physical stores and online purchases is on the rise in all countries. The fact that the user is increasingly mobile indicates that this device continues to evolve into the wallet, payment tool, and channel through which future purchases will be made.

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In the case of Colombia, the use of IPP payment applications from mobile phones continues to increase, which is already used by 55% of the population of banks, especially to send money to friends, family or acquaintances, and they are the preferred payment of 16% of the population.

The use of a smartphone to make purchases in e-commerce also continues to grow in Colombia, where 74% of Colombians say they use it. Added to this is the increased frequency of online purchases, which are made at least once every three months by 23% of Colombians.

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