A year in review: the key fintech developments that shaped 2024
A year in review: the key fintech developments that shaped 2024
Every fintech landscape is dynamic and different from one another, yet 2024 was a transformative year for them all. Specifically, Latin America (LatAm), Spain and Portugal all saw significant advancements that will shape the future of financial services in each region.
As we begin 2025, it’s important to reflect on last year’s key developments, so players in each region are prepared for the impact these trends will have on the year ahead.
The rise of alternative payment methods
In 2024, many regions saw a surge in the adoption of alternative payment methods (APMs). This adoption has been spurred on by shifts in consumer preferences and demands. Not only are APMs often more efficient and convenient, but they are also helping drive financial inclusion. By leveraging APMs, previously underbanked populations are able to save money, transfer funds and build credit histories, effectively bringing them into the wider financial system.
Mobile payments
The first example of an APM that experienced continued growth in 2024 is mobile banking. In Brazil, 63% of consumers actively engaged in mobile banking on a weekly basis, while in Chile mobile purchases accounted for 59% of ecommerce volume. What’s more, in Argentina, 70% of online purchase were made via mobile devices – a huge move for a country that traditionally favours cash.
In Spain, mobile banking also grew in popularity, with mobile payments at point-of-sale (POS) reaching 25% adoption in the second quarter of 2024, compared to just 12% in 2018. It’s clear that mobile is becoming a front runner in terms of popular payment methods, so merchants in these regions should ensure that their mobile offerings are perfected in 2025.
Instant payments
The digital revolution in LatAm was further exemplified in 2024 by the increased success of instant payment systems. For instance, PIX, Brazil's popular solution, hit 153 million users - around 75% of the country's population. Although Mexico has seen a slightly slower uptake of its own real-time digital payment platform, Cobra Digital (CoDi), the solution is still gaining popularity and there are around 18,441,000 validated accounts as of 2024. In 2023, the Mexican government also introduced DiMo (Mobile Money), which gained 7 million registered accounts in 2024.
Regulatory developments in 2024 also established more comprehensive frameworks for Open Banking account-to-account payments. For example, the National Monetary Council in Brazil announced definitive governance structure for Open Finance. This announcement focused on two main objectives: establishing the regulatory framework for the Open Finance definitive structure and increasing user adoption in the region.
Open banking is also rapidly growing in Europe, bringing major changes to the financial sector and transforming how businesses and consumers access and share financial data. A 2023 Mastercard report, highlighted Spain as an emerging player in this space, with 60% of Spanish consumers showing interest in the solution.
Buy Now, Pay Later
Another alternative payment method that saw a rise in usage in 2024 is Buy Now, Pay Later (BNPL). Across LatAm, BNPL usage grew by 31% annually. 61% of Latin American consumers also said their main motivation for using BNPL is because it makes it easier to budget.
The payment method is less popular in Spain than in other European countries, however, the country is still seeing steady growth in the number of BNPL transactions. In fact, market modelling estimated that BNPL transactions in Spain would be 15% higher in 2024 than in 2023.
In 2025, it’s crucial that merchants look at their payment strategies and ensure they are offering both traditional methods and more innovative solutions. By keeping track of the top payment trends in each region they serve, merchants will be best positioned to capture new market segments and customers.
Breaking down international barriers
Our world is becoming increasingly globalised. Therefore, having integrated, seamless cross-border payments are more essential than ever before. Traditionally, international payments across all regions have been costly, lengthy and complex. However, cross-border developments in 2024 signify a fundamental shift away from this, to simpler, more accessible transactions.
In LatAm, the cross-border payment landscape experienced around 24% growth in 2024. This growth was fueled by fintech innovations and strategic partnerships.
Last year also saw countries, such as Costa Rica, implement robust infrastructure and instant transfer routes. In Chile, the Central Bank proposed new regulations for cross-border card acquiring - enabling cardholders to make payments to businesses abroad with their payment cards issued in the country. The Central Bank of Argentina also announced that small and medium-sized businesses will pay for most imported goods within 30 days, consistent with the government’s efforts to enable a better flow of imports and great efficiency of payments to overseas suppliers. Furthermore, in Brazil, the launch of two new solutions that expand the reach of Pix beyond national boarders now enable Brazilian tourists to use the solution abroad.
In 2024, Spain became the first European market fully connected to the European Payments Councils One-Leg Out (OCT Inst) instant payments in November. This allows Spanish banks to process instant international transfers to and from countries outside the eurozone in seconds (24 hours a day and seven days a week, regardless of international time zones). Portugal also made significant developments, introducing anti-fraud measures with new requirements for payment service providers. This will help to combat VAT fraud and ensure that cross-border payments are safer and more seamless.
As we look toward 2025, the cross-border payment ecosystem is poised for even further innovation. Continued development will fundamentally reshape the nature of international trade. Merchants in LatAm, Spain, Portugal and beyond need to embrace more seamless, efficient cross-border payment methods so they can expand their customer base and remain competitive in an increasingly global marketplace.
In LatAm, the cross-border payment landscape experienced around 24% growth in 2024
Key takeaways: Preparing for 2025
2024 marked a pivotal year for fintech across LatAm, Spain, and Portugal. The widespread adoption of APMs, from mobile banking to BNPL solutions, demonstrated consumers growing appetite for digital financial services. The transformation of cross-border payments has also started to break down international barriers, creating opportunities for businesses of all sizes to participate in the global economy.
The foundations laid in these regions in 2024 are not just a temporary shift, but a transformation in how consumers and businesses will engage with financial services in future. As we move into 2025, the merchants who stay on top of these trends - embracing APMs and improving cross-border payment solutions - will be best positioned to thrive in an increasingly connected and digital-first world.