Value Chain Definition on the Payment in Chile.¶

The payment industry value chain in Chile is a complex ecosystem involving multiple steps and participants that facilitate the transfer of funds between individuals and entities. It encompasses the entire process, from the initiation of a payment to its final settlement. This value chain has been evolving rapidly, driven by technological advancements, regulatory changes, and shifting consumer preferences towards digital payment methods.

Value Chain outline¶

The payment industry value chain in Chile can be broken down into the following comprehensive steps:

Payment Initiation: The process where a payer begins a payment instruction.
Payment Authentication and Authorization: Verification of the payer's identity and confirmation that sufficient funds or credit are available for the transaction.
Payment Processing: The technical clearing and routing of payment information between the involved parties.
Payment Clearing and Settlement: The process of reconciling transactions between financial institutions and the actual transfer of funds.
Payment Acceptance and Wallets: The infrastructure and services enabling merchants to accept various payment methods and consumers to store payment credentials and initiate payments.
Payment Infrastructure and Networks: The underlying technical and operational frameworks that support the entire payment ecosystem.
Regulation and Oversight: The legal and supervisory framework governing payment activities.

Identification and description of each step in the value chain.¶

Payment Initiation

This step involves the actions taken by an individual or business to start a payment.

Identification and description of segments for each step of the value chain.
- Point-of-Sale (POS) Initiation: Payments made physically at a merchant location.
- Online/E-commerce Initiation: Payments made through websites or mobile applications.
- Mobile Peer-to-Peer (P2P) Initiation: Direct transfers between individuals using mobile devices.
- Bill Payment Initiation: Payments made for services or utilities, often through specific platforms or channels.
- Account-to-Account (A2A) Initiation: Direct transfers between bank accounts.
List of types of players in each segment
- POS Initiation: Consumers, Merchants, POS terminal providers.
- Online/E-commerce Initiation: Consumers, Merchants, E-commerce platforms, Payment gateways.
- Mobile P2P Initiation: Individuals, Mobile payment apps, Banks, Fintech companies.
- Bill Payment Initiation: Consumers, Billers (utility companies, service providers), Payment platforms (e.g., Servipag).
- A2A Initiation: Individuals, Businesses, Banks, Payment initiation service providers (PISPs).
Detailed description of the main activities within each segment.
- POS Initiation: Swiping, inserting, or tapping a card on a POS terminal; entering a PIN or signing; using mobile wallets for contactless payments.
- Online/E-commerce Initiation: Entering card details on a website; selecting a digital wallet or alternative payment method at checkout; authenticating the transaction online.
- Mobile P2P Initiation: Initiating transfers via mobile banking apps or dedicated payment apps using phone numbers, QR codes, or contact lists.,
- Bill Payment Initiation: Presenting a physical bill for payment; entering bill details on an online platform; selecting a payment method (cash, card, bank transfer).
- A2A Initiation: Directly initiating a payment from one bank account to another, often facilitated by online banking platforms or third-party providers.

Payment Authentication and Authorization

This step focuses on verifying the legitimacy of the payment request and the availability of funds.

Identification and description of segments for each step of the value chain.
- Card Authentication: Verifying cardholder identity and card validity.
- Account Holder Authentication: Verifying the identity of the bank account holder.
- Fraud Detection and Prevention: Identifying and preventing fraudulent transactions.
List of types of players in each segment
- Card Authentication: Issuing banks, Payment networks (Visa, Mastercard, Redcompra), Merchants, Payment gateways, Fraud prevention service providers.
- Account Holder Authentication: Originating banks, Receiving banks, Authentication service providers.
- Fraud Detection and Prevention: Banks, Payment networks, Payment gateways, Specialized fraud prevention companies.
Detailed description of the main activities within each segment.
- Card Authentication: Checking card number, expiry date, CVV; using PINs or signatures; implementing Strong Customer Authentication (SCA) methods like 3D Secure.
- Account Holder Authentication: Using online banking login credentials; employing multi-factor authentication; utilizing digital certificates.
- Fraud Detection and Prevention: Analyzing transaction patterns; using machine learning algorithms to identify suspicious activities; implementing rules-based systems; collaborating on fraud intelligence.

Payment Processing

This step involves the technical handling and routing of payment information.

Identification and description of segments for each step of the value chain.
- Transaction Routing: Directing transaction data to the appropriate networks and institutions.
- Data Formatting and Translation: Converting transaction data into standardized formats for different systems.
- Network Interconnection: Connecting various participants in the payment ecosystem.
List of types of players in each segment
- Transaction Routing: Payment gateways, Payment processors, Payment networks.
- Data Formatting and Translation: Payment processors, Technology providers.
- Network Interconnection: Payment networks, Telecommunication providers.,
Detailed description of the main activities within each segment.
- Transaction Routing: Receiving transaction requests from merchants or payment initiators and sending them to the relevant payment network or bank.
- Data Formatting and Translation: Ensuring that transaction data is in a format that can be understood and processed by all parties involved.
- Network Interconnection: Maintaining the technical links and protocols that allow different systems and institutions to communicate and exchange payment information.

Payment Clearing and Settlement

This step involves the reconciliation of transactions and the final transfer of funds between financial institutions.

Identification and description of segments for each step of the value chain.
- Clearing: The process of exchanging transaction information between payment participants and calculating the net obligations of each participant.
- Settlement: The actual transfer of funds between the accounts of the participating financial institutions to discharge the obligations determined during clearing.
- Dispute Resolution: Handling chargebacks, refunds, and other transaction disputes.
List of types of players in each segment
- Clearing: Clearing houses (e.g., ComBanc for large value payments), Payment networks.
- Settlement: Central Bank (for high-value settlements), Commercial banks.
- Dispute Resolution: Issuing banks, Acquiring banks, Payment networks.
Detailed description of the main activities within each segment.
- Clearing: Aggregating and netting payment instructions to determine the amount owed or due by each participant.
- Settlement: Transferring the actual funds between bank accounts, typically through accounts held at the central bank (for large-value systems like LBTR) or through commercial bank arrangements.
- Dispute Resolution: Investigating disputed transactions, processing chargebacks and refunds according to network rules and regulations.

Payment Acceptance and Wallets

This step focuses on the tools and services that allow businesses to receive payments and consumers to make them conveniently.

Identification and description of segments for each step of the value chain.
- Merchant Acquiring: Enabling merchants to accept electronic payments.
- Payment Gateways: Providing the technical infrastructure for online payment processing.
- Digital Wallets: Storing payment information and facilitating mobile and online payments.
- Alternative Payment Methods (APMs) Acceptance: Enabling merchants to accept payments beyond traditional cards.
List of types of players in each segment
- Merchant Acquiring: Acquiring banks (e.g., Transbank, Getnet by Santander, EVO Payments in partnership with Bci),, Payment processors.
- Payment Gateways: Local providers (e.g., Webpay Plus, Khipu, Pago Fácil, Flow.cl, Payku),, International providers (e.g., Mercado Pago, PayPal, Stripe, EBANX, Worldline, APEXX Global, 2Checkout).,,
- Digital Wallets: Banks (e.g., Banco de Chile with FAN), Fintech companies (e.g., Mercado Pago, MACH Pay, Fpay, Tenpo, OnePay),,, Global tech companies (e.g., Apple Pay, Google Pay, Samsung Pay).,,
- APMs Acceptance: Payment gateways, Specialized payment providers (e.g., Servipag for cash payments, Wibond for BNPL, Transfi for crypto).,,
Detailed description of the main activities within each segment.
- Merchant Acquiring: Providing POS terminals, online payment solutions, and processing services to merchants; managing merchant accounts and settlements.,
- Payment Gateways: Encrypting and securely transmitting payment data; connecting merchant websites to payment processors and networks; offering APIs and plugins for integration.,
- Digital Wallets: Allowing users to link credit/debit cards and bank accounts; facilitating in-app, online, and contactless payments; offering P2P transfers and bill payments.,
- APMs Acceptance: Integrating various payment methods like bank transfers, cash payments through networks, Buy Now, Pay Later (BNPL) options, and potentially cryptocurrency payments into merchant checkout flows.,,

Payment Infrastructure and Networks

This step comprises the foundational systems and networks that enable payment transactions.

Identification and description of segments for each step of the value chain.
- Card Networks: Operating the rules and infrastructure for card-based payments.
- Interbank Networks: Facilitating transfers and communication between banks.
- Real-Time Gross Settlement (RTGS) Systems: Processing high-value payments individually and in real-time.
- Automated Clearing Houses (ACH): Processing batch payments for direct debits and credits.
- Mobile Network Operators (MNOs): Providing the connectivity for mobile payments.
List of types of players in each segment
- Card Networks: Visa, Mastercard, American Express, Diners Club, Magna, Redcompra (local debit network).,
- Interbank Networks: Banks, potentially a central interbank entity.
- RTGS Systems: Central Bank of Chile (Sistema LBTR).
- ACH: ComBanc (Large Value Payments Clearing House).
- MNOs: Entel, Movistar, Claro, WOM.
Detailed description of the main activities within each segment.
- Card Networks: Setting transaction standards, managing interchange fees, providing authorization and clearing services for card payments.
- Interbank Networks: Enabling secure and efficient communication and transfer of funds between different banks.
- RTGS Systems: Settling large-value interbank payments individually and immediately to reduce settlement risk.
- ACH: Processing bulk payment instructions (like payroll or bill payments) in batches for clearing and settlement.
- MNOs: Providing reliable mobile connectivity essential for mobile banking and digital wallet transactions.

Regulation and Oversight

This step involves the governmental and regulatory bodies that establish the rules and ensure the stability and integrity of the payment system.

Identification and description of segments for each step of the value chain.
- Central Bank Regulation: Setting monetary policy and overseeing the payment system.
- Financial Market Commission (CMF) Regulation: Supervising financial institutions and fintech companies.
- Consumer Protection: Establishing rules and mechanisms to protect consumers in payment transactions.
- Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Compliance: Implementing regulations to prevent illicit financial activities.
List of types of players in each segment
- Central Bank Regulation: Banco Central de Chile.
- Financial Market Commission (CMF) Regulation: Comisión para el Mercado Financiero (CMF).,
- Consumer Protection: Regulatory bodies, Consumer protection agencies.
- AML/CFT Compliance: Financial intelligence units, Regulatory bodies, Financial institutions, Fintech companies.
Detailed description of the main activities within each segment.
- Central Bank Regulation: Operating the RTGS system, establishing payment system policies, ensuring financial stability related to payments.
- CMF Regulation: Licensing and supervising banks, fintechs, and other payment service providers; enforcing compliance with financial regulations, including the new Fintech Law.
- Consumer Protection: Implementing regulations regarding transparency, dispute resolution, and data security for consumers using payment services.
- AML/CFT Compliance: Developing and enforcing regulations to prevent the use of the payment system for illegal activities; requiring financial institutions to implement Know Your Customer (KYC) procedures and report suspicious transactions.

Show estimates of volumes and sizes of each step in the value chain.¶

Providing exact, up-to-date volume and size estimates for each granular step of the value chain based solely on the provided search results is challenging, as the data available focuses on specific payment methods or market segments rather than a full value chain breakdown. However, we can infer and present the available data points relevant to the size and volume of payment activities in Chile.

Overall Retail Payments Volume: Chile has the second-highest volume of retail payments as a share of GDP in South America, behind only Brazil. The number of retail transactions per capita in Chile increased from 117 in 2018 to 279 in 2022.
Card Transactions Volume and Value: The annual value of card transactions in Chile is estimated to be $132.56 billion in 2024 and is expected to grow at a CAGR of more than 7% during 2024-2028. In 2024, cards dominate the payment instrument market in terms of transaction volume. Payment cards account for more than 47% of transaction volume in the Chile cards and payments market in 2024. Debit cards are the leading payment method for in-person payments, accounting for 37% of the financial volume at the point-of-sale (POS). Credit cards are the most used method for e-commerce purchases (60%), followed by debit cards (20%) and bank transfers (9%) as of 2024 estimates.,
E-commerce Payment Volume: Chilean digital commerce reached US$34 billion in 2023 and is projected to grow to US$42.7 billion in 2026.,
Digital Wallets: While not having a specific volume for the entire segment, Mercado Pago has nearly 5 million customers in Chile. Digital wallet transactions account for less than 10% of retail purchases.
Bank Transfers: Webpay and Khipu are leading players in bank transfer services for e-commerce, with 74% and 16% market share respectively.,
Buy Now, Pay Later (BNPL): The BNPL market in Chile was valued at USD 651.2 million in 2024 and is expected to grow to US$871.7 million in 2025, with a projected CAGR of 23.7% during 2025-2030, reaching approximately USD 2.52 billion by the end of 2030.
Cash Payments: Cash transactions account for only 3% of all payments in Chile, the lowest share among the Top Six Markets in Latin America. Servipag handles approximately 9 million transactions monthly, offering offline payment options.
Fintech Sector: As of 2024, there were 348 active fintech startups in Chile. Payments and remittances is a significant segment within the Chilean fintech ecosystem., 42.9% of payment and remittance fintechs in Chile exceeded US$100 million in transaction volume in 2024, expected to rise to 60.7% by 2025.

Due to the nature of the available data, it is not possible to provide a precise monetary value or transaction volume for each specific step of the value chain (Initiation, Authentication, Processing, Clearing/Settlement) as these are often interconnected and reported in aggregate by payment method or market type. The volumes and sizes mentioned above represent the overall activity within certain payment categories that span across several value chain steps.

Value Chain Summary Table¶

Value Chain Step	Key Activities	Segments	Types of Players	Examples of Main Players	Estimated Volumes/Sizes (Based on Available Data)
Payment Initiation	Starting a payment instruction via various channels.	POS, Online/E-commerce, Mobile P2P, Bill Payment, A2A.	Consumers, Merchants, E-commerce platforms, Mobile payment apps, Billers, Banks, PISPs, POS terminal providers, Payment gateways.	Webpay, Servipag, Khipu, Mobile banking apps (various banks), Digital wallets (Mercado Pago, MACH, Fpay).,,,	Retail payments per capita: 279 in 2022. E-commerce volume: ~$34 billion (2023), ~$42.7 billion (2026 proj.)., Servipag: ~9M monthly transactions.
Payment Authentication & Authorization	Verifying payer identity and fund availability.	Card Authentication, Account Holder Authentication, Fraud Detection and Prevention.	Issuing banks, Payment networks (Visa, Mastercard, Redcompra), Merchants, Payment gateways, Fraud prevention service providers, Originating/Receiving banks.	Visa, Mastercard, Redcompra,, Chilean Banks (Banco de Chile, Santander, BancoEstado),, Payment Gateways (Webpay, Mercado Pago).,	Covered within overall transaction volumes.
Payment Processing	Technical handling and routing of payment information.	Transaction Routing, Data Formatting and Translation, Network Interconnection.	Payment gateways, Payment processors, Payment networks, Technology providers, Telecommunication providers.	Webpay Plus (Transbank), Mercado Pago, Stripe, EBANX, Worldline, APEXX Global.,	Covered within overall transaction volumes.
Payment Clearing and Settlement	Reconciling transactions and transferring funds between institutions.	Clearing, Settlement, Dispute Resolution.	Clearing houses (ComBanc), Central Bank (Banco Central de Chile), Commercial banks, Payment networks.	Banco Central de Chile (Sistema LBTR), ComBanc, Chilean Banks (Banco de Chile, Santander, BancoEstado, etc.).,	Covered within overall transaction volumes. LBTR handles large value payments.
Payment Acceptance and Wallets	Enabling businesses to receive payments and consumers to make payments conveniently.	Merchant Acquiring, Payment Gateways, Digital Wallets, APMs Acceptance.	Acquiring banks (Transbank, Getnet, EVO/Bci),, Payment gateways (see above), Digital wallet providers (Mercado Pago, MACH, Fpay),, APM providers (Servipag, Wibond, Transfi).,,	Transbank, Getnet (Santander), EVO Payments (with Bci), Webpay Plus, Mercado Pago, Servipag, MACH, Wibond.	Card transaction value: ~$132.56 billion (2024). BNPL market: ~$651.2 million (2024), ~$871.7 million (2025). Cash share: 3%.
Payment Infrastructure and Networks	Underlying systems and networks supporting payments.	Card Networks, Interbank Networks, RTGS Systems, ACH, Mobile Network Operators.	Visa, Mastercard, American Express, Diners Club, Magna, Redcompra,, Chilean Banks,, Banco Central de Chile, ComBanc, Entel, Movistar, Claro, WOM.	Visa, Mastercard, Redcompra,, Banco Central de Chile (Sistema LBTR), ComBanc, Entel, Movistar.	Covered within overall transaction volumes. Mobile internet users: 22.8M (Sept 2024).
Regulation and Oversight	Establishing rules and ensuring system stability and integrity.	Central Bank Regulation, CMF Regulation, Consumer Protection, AML/CFT Compliance.	Banco Central de Chile, Comisión para el Mercado Financiero (CMF), Consumer protection agencies, Financial intelligence units.	Banco Central de Chile, CMF.	Regulatory landscape influencing market development and player behavior. Fintech Law effective Feb 2023.

Examples of Main Players¶

Transbank: Transbank is a major player in the Chilean payment industry, historically holding a dominant position in merchant acquiring and payment processing for card transactions. While the market is opening up to more competition, Transbank's Webpay Plus remains one of the most widely used online payment gateways in the country, facilitating payments with various methods, including credit and debit cards., They provide APIs, SDKs, and plugins for integration with e-commerce platforms.

Mercado Pago: Mercado Pago, part of Mercado Libre, is a prominent Latin American payment platform with a significant presence in Chile., It operates as a widely used digital wallet and payment gateway, integrating with various online stores and offering payments through credit/debit cards, bank transfers, and its own wallet balance., Mercado Pago is also a leading challenger in the digital wallet segment in Chile.

Servipag: Servipag is a Chilean payment portal that offers a crucial service for individuals who prefer or need to make payments offline or through alternative methods. It allows customers to pay bills online or in physical locations, handling a substantial volume of monthly transactions (approximately 9 million). Servipag is a key player in the cash-based and alternative payment segment.,

Chilean Banks (e.g., Banco de Chile, BancoEstado, Santander, Bci, Banco Falabella): Major Chilean banks play a central role across the payment value chain. They are key issuers of credit and debit cards, participate in interbank networks, and are involved in clearing and settlement., Banks like BancoEstado are significant issuers of debit cards, while CMR Falabella has a notable share in credit card issuance. Banks are also developing their own digital solutions and partnering with fintechs. Banco de Chile's FAN account and Banco Falabella's integration of Fpay into its banking app are examples of their digital initiatives. Santander has launched Getnet, an acquiring network, to compete in the merchant acquiring space. Bci has partnered with EVO Payments to enter the acquiring market.

Khipu: Khipu is a local Chilean player specializing in facilitating bank transfers for online payments., It enables customers to make direct bank transfers without manually entering banking information, providing a fast and widely accepted payment option in Chilean e-commerce. Khipu holds a significant market share in bank transfer services for online payments.,

Volumes and Sizes¶

The Chilean payment market is experiencing steady growth, particularly in digital payments.

The annual value of card transactions is estimated at $132.56 billion in 2024, with a projected CAGR of over 7% from 2024 to 2028.
The e-commerce market volume reached US$34 billion in 2023 and is expected to grow to US$42.7 billion in 2026.,
In terms of transaction volume, cards are the leading payment instrument in 2024, accounting for over 47%. Debit cards are dominant for in-person payments (37% of POS financial volume), while credit cards lead in e-commerce (60%).,,
The Buy Now, Pay Later (BNPL) market is a high-growth segment, valued at USD 651.2 million in 2024 and forecast to reach USD 2.52 billion by 2030.
Cash transactions represent a small portion of payments, accounting for only 3% of the total.
The fintech sector in Chile is growing, with 348 active startups in 2024. The payments and remittances segment within fintech is significant, with a substantial percentage of these companies exceeding $100 million in transaction volume in 2024.
Servipag handles approximately 9 million transactions monthly.

Market shares for specific segments include:

Card Schemes (POS): Redcompra leads with 44%, followed by Mastercard (29%), Visa (27%), and Amex (1%).
Bank Transfer Services (E-commerce): Webpay has a 74% market share, and Khipu has 16%.,
Mobile Internet Lines: Entel leads with 35.1%, followed by WOM (25.4%), Movistar (19.6%), and Claro (17.4%).

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