The CPG market could digitalize payments by over US$155 billion

The CPG market could digitalize payments by more than US$155 billion. A Mastercard report reveals how digitalization is transforming the payment industry in the region.

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The packaged consumer goods (CPG) industry is

undergoing a fundamental shift, driven by the growing adoption of digital payments, which promises to transform the operations of small merchants and suppliers in traditional commerce.
A recent report commissioned by Mastercard highlights a digital payment opportunity valued at US$448.4 billion in 11 countries in Latin America and the Caribbean (LAC) and the United States.
This report delves into the evolution of the CPG sector in the region, identifying key trends, barriers to overcome, and strategic recommendations to foster market growth.

Digital Payment Opportunity

The CPG industry plays a crucial role in advancing financial inclusion in Latin America. According to the report Transforming Payments: Digital Solutions for Traditional Commerce in the CPG Industry, there are nearly 12 million traditional businesses in the studied countries, ranging from convenience stores to small independent businesses.

These businesses generate US$362 billion in B2C sales, but 43% of transactions are still conducted in cash, representing a US$155 billion opportunity for payment digitalization.

On the other hand, the report also highlights that B2B transactions between small businesses and suppliers are still mostly conducted through traditional methods like cash, checks, or bank transfers.
90% of B2B payments, totaling US$293.4 billion, still do not use digital solutions. Taken together, the total opportunity of US$448.4 billion for digital payment adoption underscores the potential to modernize this sector.

Emerging Trends in Digital Payments

Although payment digitalization in the CPG sector is still in its early stages, the report highlights five key trends driving this transformation. The trends include:

1. B2B E-Commerce Platforms: Digital ordering systems have enabled small merchants to place orders online, optimizing inventory management and reducing dependence on cash.
2. Conversational Commerce: Merchants can now place orders and receive support through instant messaging platforms.
3. B2B Marketplaces: New platforms are helping CPG companies showcase products and manage billing, improving supply chain efficiency.
4. Integrated Credit Solutions: Partnerships with fintechs are providing microloans to small businesses, enabling them to grow without relying on informal financing.
5. Instant Digital Payments: CPG companies are incorporating instant, contactless payment capabilities into their supply chain processes.

At this point, Walter Pimenta, Executive Vice President of Commercial Products and New Payment Flows at Mastercard Latin America, states:

“The digitalization of payments in a traditionally cash-based sector represents one of the most significant untapped opportunities in the CPG industry today. For professionals in the CPG and banking industries, this report serves as a roadmap for action. At Mastercard, we are committed to building partnerships and offering the technology needed to accelerate this transformation and create lasting value for retailers, suppliers, and consumers.”

Strategic Recommendations for the Future

The report also proposes five strategic actions for CPG and financial sector companies to accelerate the digital transition. These include:

1. Building Scalable Digital Infrastructure: It is essential to invest in cost-effective mobile platforms that support small merchants.
2. Promoting Financial Inclusion: Personalized financial solutions that facilitate access to credit are key to the sustainable growth of small businesses.
3. Supporting Training and Digital Adoption: It is important to develop easy-to-use applications and offer educational programs to help businesses adopt digital tools.
4. Creating Customized Retailer Alliances: Using artificial intelligence to offer promotions and products tailored to the needs of businesses.
5. Fostering Strategic Collaborations: Partnerships with fintechs, payment networks, and CPG brands are essential to building a sustainable digital payments ecosystem.

In summary, the modernization of payment infrastructure in traditional commerce not only benefits businesses but also opens up new opportunities for financial inclusion and business resilience in Latin America and the Caribbean.

Methodology and Scope

Mastercard partnered with Payments and Commerce Market Intelligence (PCMI) to assess the state of digital transformation among small CPG merchants in the Americas.
The research, conducted between October 2024 and January 2025, included 12 interviews with CPG companies and technology providers. The studied markets were Argentina, Brazil, Chile, Colombia, the Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Peru, and the United States.