FLORIDA, United States — Despite an uptick in digital payment solutions, global technology company Mastercard has said that the use of cards for purchases continue to rise among customers in Latin America and Caribbean (LAC).

Referencing the findings from a recent study, the entity said cards continue to be the most widely used digital payment method with approximately 80 per cent of consumers using them for either online or in-store purchases. Additionally, the global payments solutions giant said that of the 77 per cent of customers utilising electronic payments, the majority were found to be using either debit or credit cards as the preferred choice of payment.

The study, which assesses payment behaviour and methods of choice among LAC consumers, was done recently across some 14 countries in the region.

“People in Latin America and the Caribbean continue to demonstrate their openness to testing new payment methods and their adoption of electronic payment methods. In this regard, cards continue to be the preferred medium, as the use of alternative digital methods increase exponentially while the use of cash decreases,” the company said in notes accompanying the findings.

“New payment methods have become tools that facilitate payments and transfers, which is why Mastercard has partnered with several digital wallets in various markets in Latin America and the Caribbean with the aim of providing the best payment experience to all consumer,” added executive vice-president of products and engineering for Mastercard LAC, Walter Pimenta.

The study, which further pointed to a growth in the use of mobile devices at 44 per cent as mediums from which transactions were done, shows countries such as Brazil leading in the area at 86 per cent while others such as Jamaica lag behind at a scant 13 per cent.

Customers, in citing privacy as an area of top priority amid heightened fraud and cybersecurity concerns, however, expressed confidence in the use of cards, particularly debit cards, viewing them as more secure forms of payment.

“When it comes to thinking about secure payment methods, debit cards take the top spot. According to respondents, debit cards are the payment method they fully trust [36 per cent], followed by bank transfer [34 per cent] and credit cards [27 per cent],” data from the study revealed.

Mastercard, which has been ramping up its security efforts with the help of artificial intelligence (AI) to monitor global fraud, said that work remains ongoing in the area, especially as it strives to build new systems to counter large scale attacks, at least three of which its executive vice-president of security and cyber innovation Johan Gerber said happens across the network per day.

“We do a lot around cybersecurity, the world is becoming hyper-connected with an explosion in digital connections between devices. Therefore, every time we get better at fraud we actually also get better at improving the consumer experience. Our ultimate goal is to have as many of our consumers have a great experience when they use Mastercard on digital platforms, so we want to be effective at identifying those fraud transactions.

“Over the last couple of years we have invested and acquired a few companies which have provided us with a broad set of AI capabilities which we have been using across multiple channels to build up our security,” he said during a media round-table session at the just-concluded Mastercard LAC Innovation Forum 2023 held in Miami, Florida.

The cybersecurity executive, in also responding to questions about the level of investment in the area, also told the Jamaica Observer that the company within the last five years has expended some US$7 billion to beef up its security posture across the network.

“It’s a material investment that we’ve put in — providing security while [shouldering] risks for both consumers and financial institutions. Consumers trust in us a brand and we will continue to take our efforts in the area very seriously,” he stated.

“We know that cyberattacks are a growing concern in the Latin American region for all consumers. People deserve the ability to make payments conveniently, quickly and easily without compromising their security. That’s why Mastercard is continuously taking the necessary actions to strengthen the protection of our consumers through a holistic cybersecurity strategy. To ensure a secure digital ecosystem, we use data analytics and AI to identify vulnerabilities in advance and activate automatic protection shields for all our consumers,” Pimenta also said.