The financial system landscape in Colombia has consolidated in its agenda the implementation of electronic payment transactions as a way to \u2018digitise\u2019 and promote connectivity between the sector's agents and consumers. However, in Colombia, most transactions are made with cash.<\/p>\n
According to the Banco de la Rep\u00fablica, in its survey of perception on the use of payment instruments in Colombia 2020, cash led with 88.1% as the most used means and by 2022, the same entity reported that the use of cash was reduced to 78.4%, a percentage that was mainly replaced by payment with electronic transfers with 15%, and debit cards with 8%.<\/p>\n
While indicators from past years show a strong acceleration in the transition to digital means of payment, especially motivated by the Covid-19 pandemic and the need to seek contactless payment options, 2024 has slowed down the trend that had been occurring.<\/p>\n
The Banco de la Rep\u00fablica revealed that by 2024 cash continues to lead as the most used payment instrument in daily consumption with 77.8%, and although this figure is lower than that presented in the 2022 report, the trend in the decline in the use of cash has slowed markedly in recent times.<\/p>\n
Among the main challenges for the expansion of digital means of payment in Colombia is the lack of access and technological familiarity in some sectors of the population. Connectivity problems in rural areas and low financial literacy prevent many citizens from adopting these alternatives more frequently.<\/p>\n
In addition, distrust of digital systems and fear of fraud remain common concerns among users.<\/p>\n
According to the Banco de la Rep\u00fablica, it is estimated that approximately 32.5% of the population in Colombia does not have access to any financial product, highlighting the existing gap, particularly in cities such as Cartagena and Valledupar, where almost 50% of the population lacks these services.<\/p>\n
According to the results of the perception survey on the use of instruments for regular payments in Colombia 2024, 87.5% of people with incomes below one minimum wage prefer cash for their daily transactions, as it facilitates the handling of small amounts without the need for bank intermediaries.<\/p>\n
Also, the use of cash remains essential for minor transactions and everyday purchases, where the ease and speed of use outweigh the perceived benefits of electronic payments.<\/p>\n
\u2018A hybrid model that combines the use of cash with digital transactions not only responds to the current needs of the Colombian market, but also fosters financial inclusion. It is essential that means of payment evolve without leaving aside those who depend and rely on cash for their daily transactions, thus ensuring a gradual and efficient transition to a more digital system\u2019, said Andr\u00e9s Daza, CEO of Prosegur Cash.<\/p>\n