Digital Wallets Surge, Credit Cards Overflow
- Transactions made via digital wallets are experiencing exponential growth, considerably exceeding the rate of conventional credit and debit card transactions, according to Izipay CEO Felipe Venturo.
- “Transactions originated in digital wallets grow 100%, while those made with credit cards or debit cards do so at an annual rate of 10%,” Venturo stated.
- The rise of digital payments is notably beneficial for small businesses, fostering formalization and providing financial institutions with valuable data for evaluating credit applications.
Digital Wallet Transactions Surge, Outpacing Credit Card Growth
Transactions made via digital wallets are experiencing exponential growth, considerably exceeding the rate of conventional credit and debit card transactions, according to Izipay CEO Felipe Venturo. Venturo highlighted this trend during the 2025 Perspective event, noting the increasing importance of digital payment methods.
“Transactions originated in digital wallets grow 100%, while those made with credit cards or debit cards do so at an annual rate of 10%,” Venturo stated.
Digitization Benefits Small Businesses
The rise of digital payments is notably beneficial for small businesses, fostering formalization and providing financial institutions with valuable data for evaluating credit applications. This access to details streamlines the lending process and supports the growth of smaller enterprises.
Venturo emphasized the crucial role of payment methods in a country’s overall advancement. He also noted ongoing investments by both the government and private sector in infrastructure, such as fiber optics, to broaden the reach of electronic payment systems.
Expansion of POS Terminals
Venturo pointed out the increasing availability of point-of-sale (POS) terminals in commercial establishments nationwide.This expansion facilitates broader acceptance of electronic payments.
the increased use of POS systems is meaningful because cash transactions incur higher operational costs and pose greater security risks, according to Venturo.
Looking ahead to upcoming presidential elections, Venturo urged the next government to maintain regulatory stability and avoid excessive regulation, arguing that the payment media sector is capable of self-regulation.
Surge in Electronic Wallet Transfers
Data from the Central Reserve Bank (BCRP) indicates a considerable increase in low-value transfers made through digital wallets. Transfers, both within and between banks, jumped by 98.6% in 2024 compared to the previous year.
During the same period, the average transaction value decreased to S/ 44 for intrabank transfers via Yape and S/ 71 for PLIN transactions, continuing a downward trend.
The BCRP also highlighted that there were 442 digital payments made per adult last year,averaging more than one payment per day.
“To consolidate this growth, there are still challenges to address, such as improving the quality and availability of the services offered,” the BCRP stated.
Future Projections
NTT Data projects that by 2027, digital wallets will account for 28% of the value of transactions at physical sales points, equaling the share of cash transactions.
Digital Wallets: Your Questions Answered
Digital wallets are quickly becoming a dominant force in the world of payments. This article answers your top questions about this growing trend, drawing facts directly from a recent report.
What’s driving the growth of digital wallets?
Digital wallets are experiencing exponential growth. According to Izipay CEO Felipe Venturo,transactions via digital wallets are growing at a rate far exceeding traditional payment methods.
- Digital Wallets: Growing at 100% annually.
- Credit/Debit Cards: Growing at 10% annually.
How are digital wallets benefiting small businesses?
Digital payments assist small businesses in several ways:
- Formalization: Digital transactions help to formalize business operations.
- Data for Credit Applications: They provide financial institutions with valuable data, streamlining the lending process.
- Business Growth: Help in supporting the growth of smaller enterprises.
How does expanding POS terminals support digital payments?
The increasing availability of Point-of-Sale (POS) terminals is crucial. This expansion directly facilitates broader acceptance of electronic payments. It’s a move away from cash transactions, which have higher operational costs and security risks.
What does the Central Reserve Bank (BCRP) data reveal about digital wallet transfers?
The BCRP data reveals a significant increase in low-value transfers made through digital wallets. In 2024, these transfers increased by 98.6% compared to the previous year. There was an average of 442 digital payments made per adult last year,averaging more then one payment per day.
Average Transaction Values:
- Intrabank (Yape): S/ 44
- PLIN: S/ 71
What are the challenges facing digital wallet adoption?
The BCRP states that to maintain the growth of digital wallets, it’s critically important to address existing challenges. Key areas for betterment include enhancing the quality and availability of services offered.
What are the future projections for digital wallets?
NTT Data projects that digital wallets will account for a significant portion of transactions at physical sales points by 2027.
- Digital Wallets (2027 Projection): 28% of transactions at physical sales points.
- Cash Transactions (2027 Projection): 28% of transactions at physical sales points. (Equaling digital wallet transactions)
Digital wallets adoption is growing fast and will be a major factor in the economy in the near future.