Beyond Cash: The Digital Payments Revolution in Latin America and the Caribbean

This report explores the rapid and transformative shift from cash-based to digital payment systems across Latin America and the Caribbean. It documents diverse national experiences, highlighting that there is no one-size-fits-all model for success. Instead, progress hinges on solving key market failures such as lack of interoperability, coordination problems, and barriers to entry while fostering trust and inclusion. The report emphasizes the importance of aligning technology, regulation, and incentives to build robust and inclusive payment ecosystems. It also emphasizes remaining challenges, such as leveraging modern payment systems to further expand access to other financial services like credit and ensuring that well-intentioned policies do not generate unintended effects in a region with high informality. The analysis lays out a promising research and policy agenda for Latin America and the Caribbean.