Digital wallets in Peru: Still an extra or a barrier to entry?

Digital wallets have destroyed payment friction in Peru. Earlier this year, we had a conversation with our country manager Luis Pardo about how the shift from 40-second card swipes to 15-second QR scans is boosting conversion rates and why Yape and Plin are now essential for any global merchant entering the market. Check out his thoughts!

Luis: “The boom of digital wallets has significantly transformed the payment behavior of Peruvian consumers. We are seeing a projected growth of nearly sevenfold in the average number of payments per person annually, soaring from 90 in 2021 to 625 by 2025, driven by the ease and simplicity of the checkout experience. The primary impacts derived from this trend include: Checkout Optimization: A reduction in cart abandonment and failed transactions thanks to a faster, simpler, and more secure payment flow. Market Expansion: An increase in the critical mass of potential customers, as the surging number of digital wallet users opens the door to new buyer segments. Boost in Impulse Buys: Higher sales volume stimulated by the speed of QR code payments, which maximizes conversion opportunities. Enhanced Transaction Security: Increased sales security because digital wallet payments require buyer authentication, significantly lowering fraud risk. Operational Cost Efficiency: Lower transaction costs, incentivizing merchants to improve their offerings and accelerate the adoption of digital payments.”

Smart: We’ve seen the “Big Bang” of Peruvian payments since the Central Reserve Bank of Peru mandated interoperability between Yape and Plin. For a global merchant looking at Peru today, is offering these wallets still an extra or has it become the “barrier to entry” for capturing the 95% of smartphone-equipped households?

Luis: “The interoperability achieved between Yape and Plin, driven by Peru’s Central Bank, has transformed the payments ecosystem, elevating these digital wallets to a market standard. For a global merchant, acceptance of these platforms has ceased to be a differentiating or added value and has become an essential requirement for entering the Peruvian market. Given their penetration, close to 95% of households with smartphones, Yape and Plin are deeply ingrained in national payment habits. Therefore, not offering them directly limits customer acquisition. The true competitive advantage no longer lies simply in accepting these wallets, but in the efficiency of their integration. The goal should be to reduce friction and optimize the payment experience, which translates directly into greater consumer trust.”

Smart: Now, with the growing demand for iGaming this year in Peru and the FIFA world cup approaching, trust is everything. How are digital wallets acting as the ultimate “trust-bridge” for users who were previously afraid to put their credit card details into a betting or streaming platform?

Luis: “The exponential growth of the online gaming and betting industry, along with high-impact events like the upcoming FIFA World Cup, has positioned trust as a crucial element for the industry’s development.

In this context, digital wallets are emerging as a fundamental pillar of trust because, in addition to eliminating the need to share sensitive data in each transaction and reducing the perception of risk or fraud, they significantly increase the user’s sense of control when making a payment. The widespread adoption of digital wallet payments in daily life helps transfer that credibility to the digital environment (e-commerce), even in highly sensitive sectors like betting and streaming. As a result, digital wallet payments not only facilitate transaction conversion but also expand the potential customer base by attracting new users from segments that previously avoided these platforms due to mistrust.”

Keep following us to stay informed about the payments ecosystem in Peru and across Latin America!