Venezuela’s banking sector is undergoing a significant shift, accelerating the adoption of contactless payment technology and simultaneously reducing its reliance on traditional infrastructure like ATMs and physical branches. While the move aims to modernize financial services and improve efficiency, it also reflects the challenging economic conditions that have reshaped the country’s financial landscape.
BBVA Provincial has taken a leading role in this transformation, recently completing the modernization of its entire network of ATMs with contactless technology. , the bank announced it had become the first in Venezuela to offer a fully contactless self-service experience, integrating the technology into its ATMs alongside its debit cards and point-of-sale network. The new ATMs feature chip and contactless readers, touchscreen interfaces, and functionalities such as cash withdrawals, balance inquiries, transfers, and PIN changes.
This move by BBVA Provincial is part of a broader trend. According to Pedro Pacheco Rodríguez, president of the Venezuelan Banking Association (Asobanca), approximately 60% of Venezuelan banks have already adopted contactless technology as of . Pacheco highlighted that the integration of these new technologies is proceeding successfully and allows banks to provide a more modern service. Asobanca has prioritized technological growth, particularly in areas like artificial intelligence and blockchain, for the current year.
The benefits of contactless payments are clear: they simplify transactions and speed up the payment process. Pacheco emphasized the goal is to provide “access to a faster dynamic” for customers. The technology utilizes Near Field Communication (NFC), enabling wireless transactions within a range of less than 4 centimeters. Security measures are in place for larger transactions, requiring a PIN for validation.
However, the push for digital payments is occurring alongside a contraction in traditional banking infrastructure. Data from the Central Bank of Venezuela (BCV) and Sudeban indicate a continuing reduction in ATMs and bank branches across the country. Between and , 598 bank branches closed in Venezuela. This decline is linked to an eight-year economic recession, increased legal reserve requirements, emigration of bank workers, the COVID-19 pandemic, cash shortages, and the government’s promotion of a “digital economy.”
The shift in transactional channels is stark. In , point-of-sale (POS) systems accounted for 52% of all transactions, mobile payments for 27.2%, and bank web platforms for 15%. These three channels combined represented 94% of all transactions, a significant change from a decade prior when POS systems accounted for 46%, ATMs for 23%, and bank offices for 20%. The number of POS terminals has increased substantially over the past ten years.
The modernization of BBVA Provincial extends beyond ATMs. The bank is also leveraging contactless technology for its debit cards and is exploring further digital solutions. The bank’s investment in contactless ATMs is intended to enhance customer experience, offering a more agile, accessible, and digital banking experience. The move underscores a commitment to practical and secure technological solutions.
While the adoption of contactless technology is gaining momentum – already representing 30% of operations at points of sale as of – the reduction in physical banking infrastructure raises questions about access to financial services for those without smartphones or reliable internet connectivity. The long-term impact of this digital transformation on financial inclusion remains to be seen. Projections suggest that 100% of Venezuelan banks will offer contactless payments by the end of , further solidifying the trend towards a cashless society.
The Garanti BBVA Mobile app also supports contactless onboarding technology, allowing customers to open accounts without visiting a branch, utilizing their existing internet banking password. This further demonstrates the broader push towards digital financial services within the BBVA group and the Venezuelan market.
