The rise of contactless payments drives digital transformation in Peru.

In the current context of digital transformation and evolution of payment methods, consumers and businesses in Peru are increasingly adopting contactless payments, gradually displacing traditional forms of payment with physical bank cards. According to an interview with Jimena Navarro, Chief Commercial Officer of Premium Clients at Niubiz, it has been observed that approximately 70% of payments made in businesses are carried out through contactless methods. These include the use of physical or digital cards that are tapped on the point of sale (POS), as well as scanning QR codes through mobile devices. On the other hand, only 30% corresponds to traditional payments that require the insertion or swiping of the card in the card reader. The pandemic has been a catalyst in the expansion of contactless payments, promoting the adoption of digital wallets and mobile applications as secure and convenient payment methods, especially for low-value transactions. This shift towards more agile and practical methods has driven the growth of digital wallet payments, which currently represent 11% of total payments in businesses and are expected to continue increasing. According to Navarro, it is projected that the share of digital wallets in payments will exceed 20% by the end of this year, reaching even 30% in some regions. This increase reflects the growing acceptance and trust of users in these platforms as an alternative to cash or traditional cards transactions. Despite this trend, cash remains the most used payment method in various sectors, although there is a preference for digital wallets in lower-value purchases, mainly in convenience stores, pharmacies, and retail. Navarro highlights the importance of immediate person-to-person payments in Peru, positioning the country at the forefront of Real Time Payments in the region. Competition in the digital payments market is intense, with the entry of multiple players seeking to promote financial inclusion and the digitization of transactions, driving the economic and technological development of the country. In this context of change and adaptation to new payment methods, the growing importance of innovation and convenience in commercial transactions is evident.