According to the recent Mastercard and Americas Market Intelligence (AMI) report, "The State of Financial Inclusion Post-COVID-19 in Latin America and the Caribbean: New Opportunities for the Payments Ecosystem", the region has made impressive progress since 2020. It is worth noting, for example, that more than 100 million Latin Americans (around 25%) accessed digital financial services for the first time, and of these, 72 million began testing digital transactions for various use cases.

The study also revealed that, prior to COVID-19, 56% of respondents stated that they used cash for half or more of their expenses, a percentage that has now dropped to 43%.

Financial institutions, Fintechs and governments have played a leading role in this process, as in recent years they have innovated with new products and solutions, increasingly focused and personalized, to ensure that all Latin Americans have access to financial services.

This is especially important for low-income and minority sectors, which have traditionally faced the greatest obstacles to accessing the formal financial system. Bankarization gives them the opportunity to have greater control over their finances, more security when traveling, make more efficient use of their time, send money to family members abroad without worry, and make the most of their income, among many others.

Aware of this, Mastercard has entered into strategic and close alliances with the main institutions of the financial ecosystem operating in the three northern Central American countries (Guatemala, Honduras and El Salvador). These agreements are aimed at promoting the democratization of money and enabling more people to benefit from digital financial services.

At Mastercard, we recognize the importance of bringing together the best minds, resources and efforts to achieve a shared goal: to build an inclusive economy in the region that can change the rules of the game for many people.

Some of the efforts we have focused on are:

• Empowering MSMEs and entrepreneurs: we recognize that micro, small and medium-sized enterprises (MSMEs) are central drivers of inclusive economic growth in the region. Therefore, we are working hand in hand with financial institutions, Fintechs, governments and platforms such as Entre Jaguares, to promote the development and implementation of personalized financial solutions and educational platforms that allow them to access the resources, knowledge and tools they need to grow their businesses and connect to the digital economy.

• Driving equitable access: In collaboration with our financial partners, we offer a suite of solutions and programs designed to help women entrepreneurs in the region overcome the particular challenges they face. These include La Odisea del Emprendedor, MicroMentor, and TodasConectadas, which help them acquire the skills and knowledge needed to design, launch, manage and grow a resilient business enterprise.

• Encourage the use of digital payment methods: we have designed and implemented smarter and more efficient payment technologies, such as Contactless, Tap on Phone, Click to Pay and QR, which offer a safer, more reliable, faster and more convenient alternative to cash.

• Making it easier to send and receive remittances: Through virtual cards and other solutions, Mastercard is providing millions of people who rely on the funds of family members living abroad with secure, simple and instant access to their money.

• Digitizing government services: We are working hand-in-hand with public institutions to promote the digitization of public service payments, including in public transportation, to enable citizens to enjoy more convenient, faster and safer experiences, backed by Mastercard technology.

• Promote commitment to the environment: in alliance with multiple financial institutions and other partners, Mastercard is helping to protect and restore the habitats of endangered species and reforest 100 million trees worldwide. Passion Cards, for example, offer Mastercard cardholders a simple, fast and frictionless way to contribute to the environmental causes they are most passionate about.

As a leading technology company in the global payments industry, Mastercard believes in the power of technology to build a more inclusive, sustainable and prosperous future.

We will continue to build partnerships and work with all players in the ecosystem (financial institutions, Fintechs, governments and merchants) to offer affordable services that allow Central Americans to pay wherever, whenever, and however they prefer. A cashless future, where everyone can enjoy the benefits of the digital economy, is the goal.

Translated by: A.M