A look at the challenges and problems of the future of digital payments in Chile

Chile has been a pioneer in the digitalization of payments, but that leadership is at risk. While countries such as Brazil, with its PIX system, Colombia with Bre-B or Peru, with UPI, the system that revolutionized payments in India, in addition to national digital wallets such as Yape or Plin, modernize their payment ecosystems, our market faces the challenge of updating its infrastructure in order not to be left behind. Although electronic transfers and digital payments have grown exponentially in recent years, the lack of progress in interoperability and regulation could slow the dynamism of trade and financial inclusion.

In March 2024, 66% of household consumption in Chile was made with cards, according to the Central Bank, and each person makes an average of 315 digital payments per year. However, despite this massive adoption, technological and regulatory barriers could make the Chilean payment ecosystem less competitive than its regional peers.

The growth of electronic funds transfers (EFT) is a clear reflection of this transition: in March 2024, these operations increased by 23% in value compared to the previous year, reaching 268,953 million dollars, equivalent to 82% of the country's GDP. At the time, Chile was a pioneer in the region by allowing immediate interbank transfers, which represented a great advance and positioned us as a benchmark in digital payments. However, they are instantaneous for the user, but are later cleared in a vault.

However, the current challenge lies not only in the ability to make these payments, but in the technology that supports them, in the way banks communicate with each other and the greater or lesser friction for those who use the services. The infrastructure that was once innovative today faces barriers in speed, interoperability and security that must be addressed. If these systems are not modernized, we run the risk of falling behind countries that have optimized their platforms more quickly and have adopted more advanced global standards.

Chile has the opportunity to consolidate its leadership in digital payments, but it must accelerate its adaptation to new global trends. The implementation of immediate payments, the integration of open finance and the strengthening of fintech infrastructure will be decisive in keeping us at the forefront. Today we recognize that the regulator has been collecting opinions and reviewing experiences from other countries to gain certainty and ensure a modern and well-done implementation, and we must continue working on these challenges so that Chile maintains its leadership in this area.

Being able to make a payment by validating it with your email, phone number or unique number, on a new road, which provides instant liquidity and at a low cost, is an improvement for end consumers that cannot take any longer to be regulated in our country.