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Fast payments and financial inclusion in Latin America and the Caribbean

Author

Listed:
  • Jose Aurazo
  • Cecilia Franco
  • Jon Frost
  • Jamere McIntosh

Abstract

Most countries in Latin America and the Caribbean are implementing fast payment systems (FPS), often with the goal of enhancing access to and use of affordable financial services. FPS offer immediate transfer of funds on a 24x7 basis between end users. This paper assesses how FPS can promote financial inclusion. We find that FPS go hand-in-hand with greater access to loans and savings in the financial system. The paper also discusses the current experience of countries across the region in FPS and related payment innovations, including central bank digital currencies (CBDCs). Finally, we discuss the key challenges in practice associated to cybersecurity risks and fraud, interoperability, end user and participant fees and universal access.

Suggested Citation

  • Jose Aurazo & Cecilia Franco & Jon Frost & Jamere McIntosh, 2025. "Fast payments and financial inclusion in Latin America and the Caribbean," BIS Papers, Bank for International Settlements, number 153.
    • Handle: RePEc:bis:bisbps:153
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    References listed on IDEAS

    as
    1. Aurazo, José & Franco, Cecilia & Frost, Jon & Koo Wilkens, Priscilla & Kosse, Anneke & Shreeti, Vatsala & Velásquez, Carolina, 2024. "The design and adoption of fast payments," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 18(4), pages 366-380, December.
    2. Raphael Auer & Giulio Cornelli & Jon Frost, 2022. "The pandemic, cash and retail payment behaviour: insights from the future of payments database," BIS Working Papers 1055, Bank for International Settlements.
    3. Jon Frost & Priscilla Koo Wilkens & Anneke Kosse & Vatsala Shreeti & Carolina Velásquez, 2024. "Fast payments: design and adoption," BIS Quarterly Review, Bank for International Settlements, March.
    4. Douglas Kiarelly Godoy de Araujo & Carlos Cantú & Allan Chinchilla & Cecilia Franco & Jon Frost & Andrea Oconitrillo, 2024. "Fast payments and banking: Costa Rica's SINPE Móvil," BIS Papers chapters, in: Bank for International Settlements (ed.), Faster digital payments: global and regional perspectives, volume 127, pages 45-60, Bank for International Settlements.
    5. Lobo, Breno & Brandt, Carlos Eduardo, 2021. "Pix: The Brazilian fast payments scheme," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 15(4), pages 367-375, December.
    6. Aurazo, Jose & Vega, Milton, 2021. "Why people use digital payments: Evidence from micro data in Peru," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 2(4).
    Full references (including those not matched with items on IDEAS)

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