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Payment in Chile Ongoing Changes Signals Analysis

This report identifies signals of ongoing changes within the Chilean payment industry's value chain, based on recent market analyses and future trend perceptions. It further correlates these signals with identified future opportunities, providing insights into the dynamic evolution of the sector.

Signals of Ongoing Changes

The Chilean payment landscape is actively being reshaped by several key developments, indicating a transition towards a more open, digital, and competitive environment.

  1. Regulatory Overhaul and Open Finance Implementation: A primary signal is the comprehensive regulatory evolution, headlined by the Fintech Law (2023) and the phased introduction of the Open Finance System (OFS). This framework mandates secure API access for Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs), aiming to dismantle information silos and foster innovation. The ongoing issuance of secondary regulations by the Comisión para el Mercado Financiero (CMF) and the Central Bank of Chile underscores a deliberate move towards a more transparent and interconnected payment ecosystem, with full OFS functionality anticipated by 2027. This signals a fundamental shift in market structure and data accessibility.

  2. Intensified Competition in Merchant Acquiring: The dismantling of Transbank's long-standing monopoly in the merchant acquiring segment is a clear signal of structural change. The market now sees active participation from new entrants like Getnet (Santander), EVO Payments/Bci, and non-bank acquirers such as Kushki. This influx of competition is palpably driving down Merchant Discount Rates (MDRs), with new players often pricing below 2%, and encouraging innovation in merchant services and technology offerings.

  3. Rapid Adoption and Growth of Digital Payment Alternatives: There's a strong market signal in the shifting consumer preferences towards digital payment methods. Digital wallets (e.g., Mercado Pago, MACH, Tenpo) are experiencing the fastest growth in adoption, while Account-to-Account (A2A) transfers and Buy-Now-Pay-Later (BNPL) schemes are rapidly gaining share. The BNPL market, for instance, shows a projected CAGR of 23.7% (2025-2030). This signals a decreased reliance on traditional card payments and cash, and an increasing demand for convenience and varied payment options.

  4. Altered Card Economics due to Interchange Fee Caps: The regulatory imposition of caps on interchange fees (effective October 2024) for credit and debit card transactions is a direct intervention signaling a change in the economic model for card issuers. While aimed at reducing costs for merchants, this will compress issuer revenues and may influence future investments in card portfolios, loyalty programs, and innovation within the card segment.

  5. Emergence and Adoption of New Business Models: The market is signaling a move beyond traditional payment business models. The rise of "Interchange++" transparent pricing by new acquirers offers merchants greater clarity on cost components. Furthermore, the anticipated "Open-Finance Payment Initiation" model, where PISPs could offer low-cost A2A payments (e.g., 30-50 bps per transaction) directly from bank accounts, signals a potential disruption to card-based revenue streams and new value propositions for merchants.

  6. Increasing Significance of Cross-Border Payments and Specialized PSPs: The growing activity of international Payment Service Providers (PSPs) like Worldline and EBANX, which are optimizing payment routing for cross-border transactions, and the regulatory green light for new cross-border acquiring frameworks, signal an increasing focus on facilitating international e-commerce. This indicates a market adapting to global commerce trends and the need for efficient international payment processing.

  7. Heightened Focus on Advanced Fraud Prevention and Cybersecurity: With the surge in digital transaction volumes, there's a corresponding and perceptible increase in the emphasis on robust fraud detection and cybersecurity measures. The adoption of Artificial Intelligence (AI) and Machine Learning (ML) by issuers and gateways for real-time fraud analytics is a clear signal of the industry responding to evolving security threats.

  8. Persistent Interoperability and Standardization Challenges: Ongoing difficulties with fragmented QR code payment schemes and the varied levels of API readiness among financial institutions (particularly smaller banks) signal a persistent challenge. This highlights an area where ongoing change and development are crucial for achieving seamless, universal payment acceptance and fully realizing the benefits of Open Finance.

  9. Mounting Pressure on Operational Costs and Margins: Payment providers, especially fintechs and smaller PSPs, face signals of increasing operational pressures. Escalating costs related to cloud infrastructure, cybersecurity, and the intensive compliance requirements of new regulations are squeezing margins, signaling a need for greater efficiency and potentially market consolidation.

  10. Sustained Drive for Broader Financial Inclusion: Despite Chile's relatively high digital payment penetration, the continued focus on initiatives to integrate underserved populations (such as rural communities and the elderly) into the digital economy is a signal of ongoing social and economic objectives influencing market development. This involves efforts to improve digital literacy and ensure the accessibility of new payment solutions.

Correlation Between Signals and Future Opportunities

The identified signals of ongoing changes are directly linked to several future opportunities within the Chilean payment industry.

Signal of Ongoing Change Correlated Future Opportunity(ies)
1. Regulatory Overhaul and Open Finance Implementation Open Finance Ecosystem; Market Liberalization and Innovation; Growth in Digital Payments & E-commerce (especially A2A transfers)
2. Intensified Competition in Acquiring Market Liberalization and Innovation; Growth in Digital Payments & E-commerce; Expansion of Value-Added Services
3. Rapid Adoption and Growth of Digital Payment Alternatives Growth in Digital Payments & E-commerce; Open Finance Ecosystem (supporting A2A growth); Expansion of Value-Added Services (e.g., integrated wallet services, BNPL management)
4. Altered Card Economics due to Interchange Fee Caps Market Liberalization and Innovation (driving players to adapt/diversify revenue models); Open Finance Ecosystem (as non-card payment rails become relatively more attractive)
5. Emergence and Adoption of New Business Models Open Finance Ecosystem (PISP models); Market Liberalization and Innovation (Interchange++ and other competitive pricing)
6. Increasing Significance of Cross-Border Payments & PSPs Market Liberalization and Innovation (new cross-border frameworks); Growth in Digital Payments & E-commerce (facilitating international sales)
7. Heightened Focus on Advanced Fraud Prevention & Cybersecurity Technological Advancement and Adoption (leveraging AI/ML for security)
8. Persistent Interoperability and Standardization Challenges Open Finance Ecosystem (standardized APIs as a solution); Technological Advancement and Adoption (development of interoperable technologies and platforms)
9. Mounting Pressure on Operational Costs and Margins Technological Advancement and Adoption (for operational efficiency); Strategic Partnerships and Collaborations (to share costs, achieve scale); Market Liberalization and Innovation (spurring development of more cost-effective models)
10. Sustained Drive for Broader Financial Inclusion Growth in Digital Payments & E-commerce (by expanding the addressable market); Expansion of Value-Added Services (creating tailored solutions for newly included segments); Technological Advancement and Adoption (developing accessible and user-friendly interfaces)

References

This report is a synthesis based on the provided "Value Chain Analysis" and "Payment in Chile Current Opportunities Analysis" documents. Key information supporting the identified signals and opportunities can be traced to analyses and data points mentioned within these documents, which themselves cite numerous primary sources. Representative original sources underpinning these findings include:

  • Banco Central de Chile. Payment systems. https://www.bcentral.cl/web/bch/areas-de-accion/mercado-financiero/sistemas-de-pago
  • Banco Central de Chile. BOX III.1 - Setting Final Limits to card's Interexchange fees. https://www.bcentral.cl/web/bch/estandares-de-publicacion-de-informes/informes-de-estabilidad-financiera/2023/segundo-semestre/IEF_II_2023_BOX_III_1.pdf
  • CMF Chile. Regulations on Financial Services Providers in the Fintech Act. https://www.cmfchile.cl/portal/principal/605/w3-article-85488.html
  • Dock. Ley Fintech in Chile: A promising scenario for the industry and growth towards financial inclusion. https://www.dock.tech/blog/ley-fintech-chile/
  • Eguiguren.cl. Fintech Law: CMF Approves Regulation Governing Open Finance System. https://www.eguiguren.cl/en/fintech-law-cmf-approves-regulation-governing-open-finance-system/
  • Finnovista. What You Need to Know About Chile's Fast-Maturing Fintech Market. https://www.finnovista.com/fintech-ecosystems/fintech-chile-2024/
  • GlobalData. Chile Cards and Payments – Opportunities and Risks to 2028. https://www.globaldata.com/store/report/chile-cards-and-payments-market-analysis/
  • GlobeNewswire. Chile Buy Now Pay Later Business Databook 2025: A $651 Million Market in 2024. https://www.globenewswire.com/news-release/2024/11/20/2783535/0/en/Chile-Buy-Now-Pay-Later-Business-Databook-2025-A-651-Million-Market-in-2024-Projected-to-Reach-2-5-Billion-by-2030-at-a-CAGR-of-23-7.html
  • Khipu – Open Finance APIs. https://khipu.com/en/
  • 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
  • VIXIO Regulatory Intelligence. Chile's New Fintech Law Can Drive Innovation. https://vixio.com/news/fintech/chile-fintech-law-can-drive-innovation/