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Payment in Chile Analysis of Key Trends

The Chilean payment industry value chain is undergoing a dynamic transformation characterized by several interconnected trends. These trends are reshaping how payments are initiated, processed, and accepted, driven by regulatory shifts, technological innovation, and evolving consumer and merchant expectations.

  1. Regulatory Evolution Driving Openness and Competition:

    • Full Implementation of the Fintech Law and Open Finance: A pivotal trend is the phased implementation of the Fintech Law (Law No. 21,521) and its core component, the Open Finance System (OFS). This framework mandates API access for secure data sharing and payment initiation with customer consent, aiming to boost competition and innovation. The CMF is actively issuing secondary regulations, with full OFS operationalization expected by 2026-2027. This directly fosters the growth of Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs).
    • Interchange Fee Caps Impacting Card Economics: The introduction of caps on credit (0.8%) and debit (0.35%) card interchange fees in October 2024 is a significant regulatory change. This aims to reduce merchant costs but also impacts issuer revenue, potentially influencing investment in card portfolios and reward programs.
    • Evolving Cross-Border Acquiring Rules: Regulations are adapting to allow authorized PSPs to conduct cross-border acquiring, enabling foreign merchants to more easily sell to Chilean consumers with local currency processing. This opens new avenues for specialized fintechs and increases international e-commerce flows.

  2. Intensified Competition in Merchant Acquiring:

    • The historical dominance of Transbank is being challenged by new entrants like Getnet (Santander), EVO Payments/Bci, and non-bank acquirers such as Kushki and Klap. This increased competition is leading to pressure on Merchant Discount Rates (MDRs), fostering innovation in merchant services, and driving a shift towards more transparent pricing models like Interchange++.

  3. Accelerated Adoption of Digital and Alternative Payments:

    • Digital Wallets Gaining Prominence: Digital wallets (e.g., Mercado Pago, MACH, Tenpo) are experiencing rapid consumer adoption, becoming key tools for online and, increasingly, in-store payments. They offer convenience and often integrate multiple financial services.
    • Rise of Buy Now, Pay Later (BNPL): BNPL services are a high-growth alternative payment method, appealing to consumers seeking flexible installment options, particularly in e-commerce. The Chilean BNPL market is projected for significant expansion (USD 651.2M in 2024 to USD 2.52B by 2030e).
    • Growth of Account-to-Account (A2A) Payments: Facilitated by Open Finance initiatives and the potential for lower transaction costs, A2A payments are gaining traction. Fintechs like Khipu are enabling direct bank transfers for online purchases, offering an alternative to card rails.

  4. Technological Advancements Enhancing Capabilities and Security:

    • Artificial Intelligence (AI) and Machine Learning (ML) for Fraud Prevention: AI/ML are becoming integral for advanced fraud detection and prevention, analyzing transaction patterns in real-time to combat increasingly sophisticated cyber threats. These technologies also offer potential for operational efficiencies and personalized customer experiences.
    • Real-Time Payments (RTP) Infrastructure Development: While Chile's instant payment system development is linked to Open Finance, the global trend towards RTP is influencing expectations for faster settlement and A2A transfer capabilities.
    • Blockchain and DLT Exploration: The Fintech Law acknowledges crypto-assets, particularly stablecoins, as payment means. While not mainstream for retail, blockchain/DLT holds potential for cross-border payments and settlement in the longer term.

  5. Continued Focus on Financial Inclusion and User Experience:

    • Digitalization for Underserved Segments: Efforts persist to bring digitally excluded populations (e.g., older adults, rural communities) into the formal financial system through accessible digital payment solutions and improved digital literacy.
    • Enhanced User Experience (UX): Competition and consumer expectations are driving a focus on simpler, faster, and more intuitive payment flows across all digital channels, especially mobile.

These trends indicate a shift towards a more open, competitive, and digitally-driven payment ecosystem in Chile, where innovation in payment methods, business models, and regulatory frameworks will continue to shape the value chain.

Key Findings

Trend Key Finding Impacted Value Chain Steps Key Players Involved
Regulatory Evolution & Open Finance Fintech Law (2023) mandates Open Finance System (OFS) via APIs by 2026-2027, fostering PISPs/AISPs. Interchange fee caps (Oct 2024) reduce merchant costs and issuer revenue. All steps, especially Initiation, Authentication, Processing, Acceptance, Infrastructure, Regulation. CMF, Banco Central de Chile, Banks, Fintechs (PISPs, AISPs), Card Networks.
Intensified Competition in Merchant Acquiring New acquirers (Getnet, EVO/Bci, Kushki, Klap) challenge Transbank, driving down MDRs and promoting innovative merchant services. Acceptance & Wallets, Processing. Transbank, Getnet (Santander), EVO Payments/Bci, Kushki, Klap, Merchants.
Accelerated Adoption of Digital & Alternative Payments Rapid growth of digital wallets (Mercado Pago, MACH, Tenpo). BNPL market projected at USD 2.52B by 2030. A2A payments (Khipu) gaining traction. Payment Initiation, Acceptance & Wallets. Mercado Pago, MACH, Tenpo, Wibond, Khipu, Consumers, Merchants.
Technological Advancements AI/ML crucial for fraud prevention. RTP/A2A capabilities expanding with Open Finance. Blockchain/DLT potential for cross-border/settlement recognized. Authentication & Authorization, Processing, Clearing & Settlement, Infrastructure. Technology providers, Fraud prevention firms, Banks, Fintechs.
Focus on Financial Inclusion & UX Continued efforts to digitalize underserved segments. Demand for simpler, faster, mobile-first payment experiences. Payment Initiation, Acceptance & Wallets. Government bodies, Banks, Fintechs, Consumers.

References

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  • Banco Central de Chile. Payment systems. https://www.bcentral.cl/web/bch/areas-de-accion/mercado-financiero/sistemas-de-pago
  • Box III.1 – Setting Final Limits to Card’s Interchange Fees. Banco Central de Chile. https://www.bcentral.cl/.../IEF_II_2023_BOX_III_1.pdf (Note: Full URL truncated in source)
  • CMF Chile. Regulations on Financial Services Providers in the Fintech Act. https://www.cmfchile.cl/.../w3-article-85488.html (Note: Full URL truncated in source)
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  • VIXIO Regulatory Intelligence. Chile Gives Green Light to Cross-Border Card Acquiring. https://vixio.com/news/payments/chile-gives-green-light-to-cross-border-card-acquiring/
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  • Klap Launches Visa and Mastercard Acquiring Services in Chile | The Fintech Times. (2025, April 18). https://fintechtimes.com/2025/04/18/klap-launches-visa-and-mastercard-acquiring-services-in-chile/ (From Future Trends & Inspiring Startups)
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  • Chile's New Fintech Law Can Drive Innovation - VIXIO Regulatory Intelligence. (2023, January 13). https://vixio.com/news/fintech/chile-fintech-law-can-drive-innovation/ (From Regulatory Changes & Emerging Technologies)
  • Kushki. Non-bank acquirer | Payment solutions for large companies in LATAM. https://www.kushki.com/en/non-bank-acquiring/ (From Inspiring Startups)