By Dalton Fowles
The rapid evolution of technology is reshaping the global payments landscape. As of 2021, about two-thirds of adults worldwide engaged in digital payments, with this trend accelerating in developing economies from 35% in 2014 to 47% in 2021, according to the World Bank.
While the shift from cash is most evident in Northern Europe and East Asia, the Caribbean is also experiencing a transformation in how people pay and get paid. Global financial innovator Mastercard is at the forefront of this change, leveraging its expertise to advance digital payments across the region.
Mastercard’s role as a trusted leader in financial technology offers a unique opportunity to redefine the payments landscape in the Caribbean. Our mission is to enhance financial inclusion for individuals, businesses, and communities by expanding access to fast, secure, and seamless digital payment methods. Our goal is to reach 1 billion people and 50 million micro and small businesses globally by 2025.
Digital payments—transactions made through online or digital methods instead of cash—are becoming increasingly prevalent. Whether you’re shopping online or using a card or digital wallet at a local store, you’re participating in this digital transformation.
Our recent survey across 14 Latin American and Caribbean countries reveals that 77% of respondents have embraced digital payment methods, with credit and debit cards being the most popular. Many noted that these methods have reduced their reliance on cash.
For consumers, digital payments offer convenience, speed, and security. The growth of e-commerce and the increasing comfort of young adults with new technologies are key drivers of this trend in the Caribbean. For merchants, digital payments streamline operations, cut costs, and can lead to a 10-15% increase in average transaction amounts. They also provide valuable data for enhancing customer experiences and building loyalty.
Despite these advances, financial exclusion remains a challenge in the Caribbean, especially in the tourism sector, where secure and efficient payment methods can significantly boost economic activity. Mastercard is committed to expanding payment acceptance technologies at hotels, restaurants, shops, and tourist spots, and supporting small businesses to drive economic growth.
Looking ahead, the future of digital payments in the Caribbean is bright. Mastercard is dedicated to expanding payment options and delivering innovative solutions to create a secure, inclusive digital economy where cash is no longer king.
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