Global Compliance

Colombia Payment Landscape: Navigating a Digital Economy on the Rise

Waffo Team

Colombia is emerging as a dynamic digital economy in Latin America.

  • Data Center Growth: The data center market is projected to reach $653 million by 2027, with a CAGR of 9.44%.

  • Top Payment Method: Credit cards were the most popular online payment method in 2023.

  • Internet Usage: Users spend an average of 10.05 hours daily online.

  • Digital Infrastructure: Colombia is the second-largest recipient of digital infrastructure investment in Latin America.

  • Currency: The Peso (COP) is freely convertible with USD and EUR, but not directly with RMB.

Infographic showing Colombia's map, total population of 52.16 million (Ranking No.3 in LatAm), and ethnic composition.
Infographic showing Colombia's map, total population of 52.16 million (Ranking No.3 in LatAm), and ethnic composition.

01. Overview: The Gateway to South America

Economic Vitality

Colombia is the 5th largest economy in Latin America, known for its stability and growth.

  • Resources: Rich in oil, coal, emeralds (world's largest producer), and agricultural products like coffee and flowers.

  • Market Access: A flexible exchange rate and minimal government intervention make it attractive for foreign investment.

2023 Colombia Economic Overview: GDP $363.6 Billion, Growth Rate +1.3% forecast, Inflation Rate 9.28%.
2023 Colombia Economic Overview: GDP $363.6 Billion, Growth Rate +1.3% forecast, Inflation Rate 9.28%.

Chinese Investment

Chinese enterprises are increasingly investing in Colombia's energy, infrastructure, and telecommunications sectors, supporting local development.

2023 Colombia Foreign Trade Overview: Foreign Direct Investment (FDI) reached $17.446 Billion (up 2.3%), with Export/Import values.
2023 Colombia Foreign Trade Overview: Foreign Direct Investment (FDI) reached $17.446 Billion (up 2.3%), with Export/Import values.

02. The Digital Economy & Data Centers

Colombia ranks second in Latin America for digital infrastructure investment.

  • Cloud Adoption: Rapid growth in cloud service usage by government and companies.

  • Government Support: Policies encourage digital transformation, including tax incentives and digitized government services.

  • AI Hub: Established the country's first Artificial Intelligence Center in July 2023.

Colombia Digital Infrastructure stats: 39.51 million internet users, 91.6% mobile internet users, and 10h 3min average daily online time.
Colombia Digital Infrastructure stats: 39.51 million internet users, 91.6% mobile internet users, and 10h 3min average daily online time.

03. The Payment Battlefield: Cash vs. Digital

Pie chart of Colombia payment methods: Credit/Debit Cards (54%), Bank Transfer (17%), E-wallets (14%), Cash (10%).
Pie chart of Colombia payment methods: Credit/Debit Cards (54%), Bank Transfer (17%), E-wallets (14%), Cash (10%).

Payment Habits

The official currency is the Colombian Peso (COP). While cash remains significant, digital payments are rapidly gaining ground.

1. Credit & Debit Cards

  • Dominance: The top choice for online shopping in 2023.

  • Brands: Visa, MasterCard, and UnionPay are widely accepted.

2. Bank Transfers (PSE)

  • PSE (Pagos Seguros en Línea): A secure online payment system supported by 19 banks.

  • Features: Real-time settlement, no chargebacks, and high security.

  • Popularity: Matches local preference for bank transfers.

3. Cash Payments (Via Baloto & Efecty)

  • Via Baloto: Allows online purchases to be paid in cash at over 13,500 stores.

  • Efecty: A trusted network with 8,800 points for bill payments and remittances.

4. Digital Wallets (Nequi)

  • Nequi: The leading digital bank with 16.7 million users.

  • Features: Free transfers, bill payments, QR payments, and international remittances.

  • Growth: Driven by zero customer acquisition costs and free basic services.

Conclusion: Seizing the Opportunity

Colombia offers a stable growth environment in Latin America. Success requires understanding local payment habits.

Waffo empowers your expansion

by providing a comprehensive payment solution that covers PSE, cards, cash options like Efecty, and digital wallets like Nequi, ensuring you can serve every Colombian customer seamlessly.