SANTO DOMINGO- Half of the multiple banks operating in the country already have a local electronic wallet as a channel to facilitate payments to their clients, which demonstrates the sector's commitment to digitalization and the financial inclusion that it entails, said the Association of Multiple Banks of the Dominican Republic (ABA).
The ABA also highlighted that 44% of multiple banks have the option of a global electronic wallet, according to data recently provided by the Superintendency of Banks in the 2024 Digitalization Ranking.
The Banking Association explained that digital wallets are solutions that allow users to access, manage, and use different payment instruments issued by one or more service providers through a mobile application or website.
"These tools enable quick payments from a smartphone or mobile device, eliminate the need to carry cash or physical cards, facilitate financial planning through detailed expense reports, allow for the secure storage of multiple payment credentials, and limit physical contact when making transactions," the ABA said in a press release.
He specified that, as of the end of August of this year, there were 180,047 physical points of sale and 14,373 virtual ones in the national territory with the capacity to accept contactless payments, the basic technology for operations with digital wallets, according to data from the Central Bank.
Digital wallets represent an innovative, agile, and secure option that promotes financial inclusion and has great growth potential in the Dominican Republic, the Banking Association stated.
The ABA foresees an increase in the use of electronic wallets in the country
According to data from the Superintendency of Banks' Digitalization Ranking, by the first half of 2024, 8% of users of the financial system used local electronic wallets and 7% used international wallets to make payments. The banking association believes that their use is expected to continue increasing in the coming years due to the demand from increasingly digital users and a more diverse banking offering.
The Banking Association indicated that the types of electronic wallets used in the country are those that digitize payment credentials, electronic payment accounts, mobile payment systems, and virtual prepaid cards, in accordance with the guidelines of the Central Bank.
He explained that these are extremely secure instruments, utilizing cutting-edge technologies such as onboarding and multi-factor authentication, including biometrics, strong passwords, digital tokens, or a combination of these options. He added that the data is encrypted and mechanisms are in place to prevent fraudulent transactions, using user behavior to detect potential unauthorized activity.
The ABA pointed out that digital wallets and the expansion of banking sub-agents' operations are part of the National Financial Inclusion Strategy led by the Central Bank and have been in effect in the Dominican Republic since before 2020.
In that order, he explained that the adoption of this solution was accelerated by the need for contactless payments generated by the pandemic and by the approval of the Payment System Regulation in 2021, which enabled new figures in the Dominican payments ecosystem, such as payment service providers.
