Digital Payment Trends in Peru: Tokenization, Two-Factor Authentication, and the Future of Secure Transactions

Peru’s payment landscape is undergoing a significant transformation as new security measures for credit card transactions take effect, requiring tokenization and two-factor authentication for all digital payments.

The changes, driven by regulations from Peru’s banking supervisor SBS (Superintendencia de Banca, Seguros y AFP), aim to reduce fraud in an increasingly digital economy where cash still dominates point-of-sale transactions but digital methods are rapidly gaining ground.

New Security Standards for Card Payments

Starting with the implementation of SBS regulations, Peruvian consumers will no longer be able to complete credit card transactions using only the card number, expiration date, and CVV code. Instead, all digital payments must now incorporate tokenization—replacing sensitive card data with unique, dynamic tokens—and two-factor authentication, which requires users to verify their identity through a second method such as a one-time code sent to their mobile device or biometric verification.

Context: Peru’s Evolving Payment Ecosystem

These changes come amid broader shifts in how Peruvians pay for goods and services. While cash represented 35% of point-of-sale payments in 2023, digital payment methods are growing rapidly, driven by the popularity of mobile wallets like Yape and PLIN, which enable peer-to-peer transfers and QR code payments without requiring a traditional bank account.

Industry Response and Adoption

Impact on Consumers and Merchants

Broader Trends in Digital Payments