28°C
Digital Payments Must Reach Small Businesses to Deepen Financial Growth in the Dominican Republic
Expanding digital payment adoption among small businesses remains one of the biggest challenges for the Dominican Republic's financial transformation, according to Cardnet executives, who say wider electronic payment use could strengthen economic growth and financial inclusion.
Digital payments have become a key driver of financial modernization in the Dominican Republic, but extending their use to small businesses remains a major challenge, according to Luis Bencosme, chairman of the Cardnet Board.
Speaking during a panel on the future of banking in Latin America at the 29th International Congress of Finance and Auditing (CIFA) and the 24th Latin American Seminar for Accountants and Auditors (Selatca), Bencosme said the country’s financial system has made significant progress in digitalization. However, a large share of consumer spending still takes place outside electronic payment channels.
He argued that greater adoption of electronic payment methods has broader economic implications beyond convenience. According to Bencosme, increased use of digital payments is directly associated with stronger economic activity and contributes to the growth of the country’s gross domestic product.
Informal Economy Limits Financial Inclusion
Bencosme explained that the informal economy reduces the traceability of commercial transactions, making it more difficult for many small businesses to establish financial records that could improve their access to banking services and financing.
Without a digital transaction history, many merchants face greater obstacles when seeking credit or other financial products, limiting opportunities for business expansion and integration into the formal financial system.
New Technologies Are Reshaping the Payments Ecosystem
The Cardnet executive also pointed to the growing role of financial technology companies and new payment service providers in transforming the Dominican financial landscape.
“We are moving from a payment system that was more monolithic to one that is opening up to new players,” Bencosme said, describing an ecosystem that is becoming more competitive and innovative.
Among the developments expected to shape the sector are instant payments, open banking, digital wallets, and other technology-driven financial services designed to offer consumers and businesses more payment options and greater flexibility.
As these technologies continue to expand, broader digital payment adoption among small merchants could play a central role in strengthening financial inclusion while supporting the Dominican Republic’s ongoing economic modernization.
