IDB Launches “IDB Pay” to Expand Digital Payments and Financial Inclusion

The initiative was announced at the FinnLAC 2025 Forum, a major regional event organized by the IDB Group to explore innovations shaping the future of the financial industry in LAC.

The Inter-American Development Bank Group (IDB Group) has launched IDB Pay, a flagship initiative aimed at transforming the digital payments landscape in Latin America and the Caribbean (LAC) by expanding access to real-time, low-cost, and inclusive payment systems. The program’s central mission is to ensure that by 2030, every individual in the region—including the 30% who remain unbanked—has access to affordable, interoperable, and secure digital financial services.

The initiative was announced at the FinnLAC 2025 Forum, a major regional event organized by the IDB Group to explore innovations shaping the future of the financial industry in LAC.

“IDB Pay is designed to accelerate the inclusion of those who have been historically unserved by the financial system,” said Anderson Caputo Silva, Chief of the IDB’s Connectivity, Markets and Finance Division. “By integrating them into modern payment systems, we empower individuals, strengthen communities, and uphold the fundamental right to economic participation.”

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Bridging the Digital Divide Through Payment Infrastructure

Across Latin America and the Caribbean, more than 200 million adults remain outside the formal financial system—a challenge that limits economic participation, weakens productivity, and reinforces inequality. Despite the rapid rise of digital wallets, QR-based payments, and instant transfers, access to reliable and low-cost payment systems remains fragmented and uneven across countries.

IDB Pay seeks to close this gap by supporting national authorities and financial ecosystems to build and expand Fast Retail Payment Systems (FRPS) and other Digital Public Financial Infrastructures (DPFI). These infrastructures enable instant payments between individuals, businesses, and governments—facilitating social transfers, remittances, small-business transactions, and public service payments in real time.

The IDB emphasized that financial inclusion and interoperability will be at the heart of this digital transformation.

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Core Objectives of IDB Pay

The IDB Group outlined four strategic pillars that define the IDB Pay initiative:

1. Interoperability

Interoperability forms the foundation of an inclusive digital payments ecosystem. IDB Pay will support countries in designing technical and regulatory frameworks that allow different payment systems—banks, fintech platforms, and mobile wallets—to connect and communicate seamlessly.

This includes setting standards for open APIs, shared QR codes, and real-time data exchange to ensure that users can send and receive payments across platforms regardless of provider.

By improving interoperability, IDB Pay seeks to reduce costs, boost innovation, and prevent market concentration among dominant payment players.

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2. Enabling Regulation

A well-designed legal environment is essential to ensure security and inclusiveness in digital finance. IDB Pay will work closely with financial regulators, central banks, and ministries of finance to co-develop regulatory roadmaps, draft enabling regulations, and offer policy-based loans to support reform implementation.

The initiative also encourages peer learning and regional cooperation, helping authorities align on data protection, consumer protection, and anti-money laundering standards, while promoting innovation-friendly frameworks that enable fintech growth.

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3. Market Incentives and Private Sector Engagement

To sustain long-term digital transformation, IDB Pay will foster private-sector participation through public-private partnerships, innovation pilots, and blended finance models.

The initiative will help governments and regulators design incentive structures that encourage investment in digital payment solutions and enhance collaboration between banks, fintechs, telecom operators, and government agencies.

By leveraging existing private infrastructure, such as payment switches and digital wallets, IDB Pay aims to accelerate progress without duplicating costs—thereby building sustainable, scalable payment ecosystems.

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4. Governance and Institutional Strengthening

Strong governance and oversight are key to ensuring public trust and system resilience. IDB Pay will help countries establish institutional coordination mechanisms, define clear accountability structures, and ensure transparent management of digital payment systems.

The program will also assist governments in developing national strategies for digital financial inclusion, integrating them with broader efforts in digital transformation, cybersecurity, and data governance.

“Without effective governance, even the best-designed systems risk fragmentation and inefficiency,” said Caputo Silva. “Our goal is to help countries build resilient, transparent, and sustainable digital payment infrastructures.”

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Building on Regional Success and Global Partnerships

IDB Pay builds on the Bank’s long-standing experience in advancing digital finance infrastructure in Latin America. Previous IDB-supported initiatives have successfully modernized payment ecosystems in Chile, Colombia, Ecuador, and Central America, where national authorities have introduced instant payment systems, regulatory sandboxes, and fintech innovation hubs.

The initiative also complements the IDB’s collaboration with the Bank for International Settlements (BIS) to develop open-source technology for central banks, supporting the implementation of real-time payment and settlement systems across the region.

By leveraging this knowledge base, IDB Pay will provide technical assistance, flexible financing instruments, and policy innovation tailored to each country’s specific needs and development stage.

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Driving Inclusion Through Digital Public Infrastructure

IDB Pay aligns with the growing global emphasis on Digital Public Infrastructure (DPI)—the integrated digital systems that support secure identity verification, interoperable payments, and data sharing.

Such systems, already in place in countries like India (via UPI) and Brazil (via PIX), have proven instrumental in expanding access to financial services, enabling small businesses, and facilitating government-to-person transfers.

IDB Pay aims to adapt these global lessons to the regional context, ensuring that Latin American and Caribbean countries can develop sovereign, inclusive, and resilient payment systems that serve all citizens, especially those historically excluded from banking and finance.

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Catalyst for Financial Inclusion and Economic Growth

The launch of IDB Pay marks a significant step toward achieving financial inclusion as a development priority. By integrating millions of unbanked individuals into formal financial systems, the initiative will enhance economic resilience, support small and medium enterprises (SMEs), and promote inclusive growth across the region.

Digital payments can also help reduce poverty, improve fiscal transparency, and stimulate innovation in financial services—creating a multiplier effect for development outcomes in education, health, and entrepreneurship.

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A Vision for 2030: Inclusive, Digital, and Connected Economies

With IDB Pay, the Inter-American Development Bank Group is reaffirming its commitment to closing the financial inclusion gap and driving regional integration through technology.

By 2030, the IDB envisions a region where all citizens—regardless of geography or income—can participate in the digital economy, send and receive payments instantly, and access financial products that support personal and business growth.

As the initiative takes root, IDB Pay is poised to become a cornerstone of Latin America’s digital transformation, empowering individuals and economies to thrive in an increasingly connected world.