Digital payments have experienced a true boom across Latin America. While significant differences persist among countries in the region, these solutions are already delivering a tangible impact on financial inclusion, serving as a gateway to the formal financial system for millions of people who previously lacked access. At the same time, they are becoming a key driver of the region’s digital transformation.

According to a recent survey by Mastercard, 72% of users say digital financial services help them save time, 59% report improved financial planning, and 53% say they have gained access to more credit options. Although63% of respondents still use cash for daily or weekly transactions, access to digital services has led 75% of users to reduce their reliance on cash.

Another study by the same company highlights the positive impact of digital payments on small and medium-sized businesses. Seventy percent of SMEs in Latin America that accept digital payments say they could not survive without them, while 85% report that these solutions help increase sales, scale operations, and improve security. In addition, 88% cite significant time and cost savings, and 86% report improvements in customer experience. At the same time, 78% of these companies use digital solutions to pay suppliers.

The smartphone: A key enabler of digital payments

In Latin America, a significant portion of the population still lacks access to traditional banking. However, smartphone adoption is widespread. According to GSMA, smartphones accounted for 81% of total mobile connections in the region in2024, a figure expected to rise to 93% by 2030. In practice, these devices have become the primary access point for digital payments.

From a technology standpoint, the systems enabling these transactions are more robust than ever. However, security still largely depends on two critical factors: users’ ability to avoid social engineering attacks, and companies’ ability to implement continuous monitoring mechanisms to detect anomalous behavior in real time.

Greater Security and aBetter User Experience

In this context, identity protection solutions based on mobile ID APIs can make a decisive difference. These tools directly address challenges related to social engineering and fraud by reducing reliance on vulnerable credentials and leveraging native mobile network signals. As a result, part of the security responsibility shifts from the end user to the network infrastructure, enabling stronger and more automated controls.

 Digital identity APIs also make it possible to deploy continuous monitoring schemes that strengthen early fraud detection without adding unnecessary friction for users. The outcome is a critical combination for the digital payments’ ecosystem: enhanced security alongside a simpler, more trustworthy user experience.

 Key benefits include:

• Mitigation of social engineering attacks
• Proactive fraud detection through continuous monitoring
• Identification of SIM swap attempts (fraudulent SIM duplication)
• Real-time phone number validation
• KYC data verification
• Improved user experience without compromising security

At Plusmo, we work to bring these identity protection capabilities to the entire mobile ecosystem. Our comprehensive suite of APIs enables companies and platforms to ensure trust in commercial transactions, delivering a robust solution for identity authentication and fraud prevention—critical to securely scaling digital payments across the region.