Panama and Latin America Lead the Electronic Payment Industry

Latin America is consolidating its position as the main growth engine for the global payments industry, with unique dynamics driven by accelerated digitalization and a unique economic context.  Global payments revenue will reach $2.4 trillion by 2029, although global growth will moderate to 4% annually during that period, according to a Boston Consulting Group (BCG) study.  This is happening at a time when the global payment industry is undergoing a fundamental reconfiguration as agentic AI, digital currencies, and fintech business models begin to shape the next wave of growth.  At the regional level, Latin America will lead the way with projected annual growth of 7.9% between 2024 and 2029, almost double the global average expected over the same period. 

These findings are part of the conclusions of BCG’s 23rd annual Global Payments Report, titled “The Future Is (Anything but) Stable,” released today.  The report is based on BCG’s Global Payments Model and includes projections and market dynamics for more than 60 economies representing more than 90% of global GDP.  Gonzalo Troncoso, Managing Director & Partner at Boston Consulting Group, said: “This is an inflection point for the industry. Traditional growth drivers are losing steam, but new ones, including agentic systems, programmable money, and fintech innovation, are rapidly gaining prominence.

Players that align with these changes now will lead the next decade.” The rise of instant account-to-account (A2A) payment systems, such as Pix in Brazil, is notable, redefining the ecosystem and offering new solutions beyond cash and cards.  On the other hand, the persistence of inflation in the region ensures that non-transactional income (derived from interest) will maintain robust growth, as interest rates are expected to decline gradually.  Globally, the report identifies five structural forces that are reshaping the payments landscape: the rise of agentic AI, digital currencies such as stablecoins, fintech disruption, real-time account-to-account (A2A) payment systems, and profound cost transformation.