The APMs in Costa Rica: Alternative Payment Methods in a Growing Digital Economy

Introduction

Costa Rica has emerged as a leading digital payments market in Central America, combining high bank penetration, widespread mobile adoption, and a supportive regulatory environment. Historically, cash and card payments dominated transactions, particularly outside urban areas. However, the last decade has seen the rise of alternative payment methods (APMs), including mobile wallets, QR payments, instant transfers, and BNPL platforms.

Government-backed initiatives, led by the Superintendencia General de Entidades Financieras (SUGEF), alongside fintech innovations, have promoted mobile wallets, QR code interoperability, and digital financial services, improving financial inclusion and urban cashless adoption.

This article provides a comprehensive analysis of Costa Rica’s APM landscape, covering market statistics, consumer behaviour, regulatory frameworks, key players, challenges, and Costa Rica’s growing influence in the regional fintech ecosystem.

1. Costa Rica’s Digital Payments Landscape: Market Foundations

Economic and Digital Infrastructure Context

• Population: ~5.3 million
• Internet penetration: ~83–85%
• Smartphone penetration: ~78%
• Bank account ownership: ~85% of adults
• Urbanisation: ~80%

Costa Rica’s urban population, high banked rate, and digital literacy provide a strong foundation for digital payment adoption, with most financial services accessible via banking apps, fintech wallets, and e-commerce platforms.

Payment Market Size and Growth

• Annual digital payments transaction value is estimated at USD 12–15 billion
• Cash remains prevalent, especially in rural micro-transactions
• Mobile wallets, QR payments, and instant transfers account for 25–30% of non-cash transactions, with adoption concentrated in urban centers like San José, Heredia, and Alajuela
• Key drivers include:
  • Fintech wallet adoption and BNPL services
  • Government-backed initiatives promoting QR interoperability
  • Urban SME digitisation
  • Growth in e-commerce

Costa Rica’s APM ecosystem is a mature, urban-focused model, balancing bank-led infrastructure with fintech innovation.

2. Understanding Alternative Payment Methods (APMs) in Costa Rica

APMs in Costa Rica include:

• Mobile wallets and super-app payments
• QR code-based payments
• Account-to-account (A2A) transfers
• Prepaid and stored-value solutions
• BNPL / installment platforms
• Government-backed digital payment initiatives

A defining feature of Costa Rica’s APM ecosystem is the strong collaboration between banks, fintechs, and government agencies, ensuring both trust and convenience.

3. APM Adoption Trends and Consumer Behaviour

E-commerce Payments

• APMs account for 25–30% of online transactions, including wallets, QR payments, and BNPL
• Cards remain dominant for high-value and international transactions
• BNPL adoption is emerging among urban Millennials and Gen Z, particularly for lifestyle, fashion, and electronics purchases

Offline & Retail Payments

• QR payments are widely accepted in supermarkets, convenience stores, pharmacies, and restaurants
• Mobile wallets are increasingly used for P2P, micro-payments, and bill payments
• Cash remains relevant in rural areas, though government incentives and fintech adoption are driving digital usage

Demographic Insights

• Urban Millennials & Gen Z: Mobile wallets, QR, BNPL
• Middle-aged urban users: Cards + bank-linked wallets
• Rural population: Predominantly cash-dependent, slow adoption
• SMEs: Digital adoption enhances transaction efficiency, accounting, and access to urban consumers

4. Key APM Categories and Leading Players in Costa Rica

1) Mobile Wallets & Fintech Payments

• BAC Credomatic Wallet – Bank-led wallet supporting P2P, retail, and bill payments
• Tigo Money Costa Rica – Telecom-backed mobile wallet for urban P2P and retail
• Kolbi Wallet – National telecom-linked wallet, focused on urban adoption
• Mercado Pago Costa Rica – Integrated with e-commerce and urban retail

2) QR Code Payment Systems

• BAC QR – Bank-backed QR solution widely accepted in urban retail
• Tigo Money QR – Fintech QR solution for micro-retail and SMEs
• Mercado Pago QR – Popular in e-commerce and small retail stores

QR adoption is strongest in urban retail, restaurants, convenience stores, and service providers, bridging cash and digital payments.

3) Account-to-Account (A2A) Transfers

• Banks offer instant P2P and merchant transfers
• Common for bills, salaries, and urban retail payments
• Fintech wallets increasingly integrate real-time settlements

4) Prepaid & Stored-Value Solutions

• Prepaid cards target students, underbanked populations, and micro-transactions
• Often linked to wallets and QR systems for offline and online usage

5) Buy Now, Pay Later (BNPL)

• Providers: Kueski Pay, Mercado Crédito, Tunki cuotas
• BNPL adoption is growing for urban e-commerce, lifestyle, and electronics purchases
• Popular among Millennials and Gen Z due to flexible installment options

5. Regulatory and Policy Framework

• Superintendencia General de Entidades Financieras (SUGEF) regulates wallets, QR systems, and e-money
• Licensing required for wallets and e-money providers
• AML/KYC compliance is strictly enforced
• Government initiatives include promotion of QR interoperability, financial inclusion, and digital banking adoption
• Open banking initiatives are in early stages, enabling fintech-bank collaboration

6. Drivers Behind APM Growth in Costa Rica

1. Government-backed infrastructure – QR interoperability and digital payment initiatives
2. Fintech innovation – Mobile wallets, BNPL, and QR solutions
3. Urban e-commerce growth – Drives wallet adoption
4. SME digitisation – Reduces cash handling and improves reporting
5. Consumer convenience – Mobile-first, instant, and cost-effective payments

Comprehensive List of Alternative Payment Methods (APMs) in Costa Rica

1️⃣ Bank-Led Wallets

• BAC Credomatic Wallet
• Banco Nacional Wallet

2️⃣ Non-Bank Wallets / Fintech Payments

• Tigo Money Costa Rica
• Kolbi Wallet
• Mercado Pago Costa Rica

3️⃣ QR Payment Systems

• BAC QR
• Tigo Money QR
• Mercado Pago QR

4️⃣ Account-to-Account Payments

• Bank instant transfers via apps and wallets

5️⃣ BNPL & Installments

• Kueski Pay
• Mercado Crédito
• Tunki cuotas

APM Comparison Table

7. Challenges and Constraints

• Cash remains prevalent in rural areas
• Fragmentation of wallets and QR systems requires merchants to adopt multiple solutions
• BNPL adoption requires robust credit assessment and consumer education
• Competition between banks and fintechs drives rapid innovation but increases market complexity
• Financial literacy and consumer trust continue to be important challenges

8. Costa Rica’s Impact on Regional Fintech and Payments

• BAC Credomatic and Tigo Money QR initiatives provide benchmarks for Central American digital payments
• Fintech wallets demonstrate urban financial inclusion and convenience
• BNPL adoption informs regional e-commerce financing strategies
• Costa Rica’s regulatory framework serves as a model for other Central American countries seeking digital payment adoption

9. Future Outlook and Projections

Over the next 3–5 years:

• Mobile wallets, QR payments, and instant transfers expected to exceed 45–50% of urban non-cash transactions
• BNPL adoption will expand in urban e-commerce and lifestyle retail
• Government-backed initiatives will further improve financial inclusion, payment transparency, and cashless adoption
• Costa Rica is poised to remain a fintech leader in Central America, balancing regulation and innovation

Conclusion

Costa Rica’s APM ecosystem demonstrates how a highly banked population, regulatory support, and fintech innovation can create a robust digital payments environment. Mobile wallets, QR codes, account-to-account transfers, and BNPL solutions are reshaping urban retail, e-commerce, and SME payments, positioning Costa Rica as a leading digital payments market in Central America.

The combination of government initiatives, fintech innovation, and mobile adoption makes Costa Rica a model for sustainable cashless growth in the region.