Having accessible, affordable, and efficient digital financial services is fundamental for promoting inclusive economic growth and generating employment. By enabling anyone with a transactional account to securely send, receive, and save money, digital payments have the potential to empower low-income populations, women, rural communities, and informal workers. For women, in particular, digital finance means greater autonomy and participation in the economy. For small businesses, it’s a pathway to formalization, financing, and growth. Digital payments don’t just move money; they build equity, expand opportunities, and create jobs.
Paraguay has made significant strides in building a more inclusive and dynamic digital payment ecosystem. A central pillar of this transformation has been the implementation of the Instant Payment System (SPI), the fast payment infrastructure operated by the Central Bank of Paraguay (BCP). Launched in 2022, the SPI enables secure, very low-cost, and real-time transfers between clients of banks and non-bank financial entities. The system has solidified its role as a key driver for digital financial inclusion in a context where digital wallets and QR code payments are fueling innovation.
In June 2025, Paraguay took another step forward in its digitalization of payments agenda with the promulgation of Law 7503 of the National Payment System (SNP). This reform represents another milestone within an ambitious agenda, establishing a solid legal and regulatory framework and ensuring effective supervision of the payment ecosystem.
Account ownership in Paraguay has shown consistent and positive progress since 2011, currently reaching 61% of the adult population, as revealed by the latest edition of Global Findex 2025. Mobile money has been a decisive factor in expanding financial inclusion, driving the opening of new accounts.
Electronic Payment Media Entities play a key role in this process. Until now, these companies have primarily focused on cash-in and cash-out operations, which indicates untapped potential for expanding the use of fully digital services. Addressing the cost of transfers between accounts and different providers will be crucial for continuing to advance user efficiency and convenience.
Meanwhile, QR code payments have emerged as a promising avenue for expanding digital payment acceptance, especially among micro, small, and medium-sized enterprises (MSMEs), many of which still lack access to traditional infrastructures like Point-of-Sale (POS) terminals. The strong growth in QR-initiated card transactions—surpassing 13.9 million in June 2025—reflects robust consumer demand and a willingness from merchants. Although current QR solutions are still mostly “closed,” adopting a standardized format provides a solid foundation for future improvements in interoperability. Optimizing QR payments will lead to greater efficiencies for both users and merchants, reducing costs and complexity while expanding the digital ecosystem.
Since its inception, the Instant Payment System (SPI) has experienced sustained and accelerated growth. In June 2025 alone, it processed nearly 28 million transactions, compared to just over 19 million in all of 2022. In terms of value, operations exceeded 82 trillion guaraníes in 2024 (USD 10.6 billion), representing a sixfold increase in just two years. This success is largely explained by the SPI’s ability to simplify person-to-person (P2P) transfers using friendly aliases such as phone numbers, email addresses, or national ID numbers.
The SPI also offers significant untapped potential in payments to merchants. Although it currently remains focused on P2P payments, the BCP is actively working to enable person-to-merchant (P2M) use cases through the SPI. This expansion could be transformative, especially if it integrates with QR payments, acceptance via aliases, and third-party payment initiation schemes, which help reduce costs and barriers to entry for micro and small businesses.
It grants the BCP clear powers to authorize and supervise entities operating within the SNP, as well as the authority to establish minimum requirements for operational matters, cybersecurity, and consumer protection. This equips the BCP with tools to manage emerging risks like fraud and scams. Furthermore, the law formally incorporates non-bank payment service providers (PSPs) and fintechs into the SNP, legally recognizing them on equal terms and allowing them access to the payment infrastructure. This opens up space for innovation and fosters competition under equitable conditions, while also reinforcing consumer protection and system security.
The law also establishes interoperability and competition as guiding principles of the SNP. Along these lines, the BCP can exercise its regulatory powers to define technical, governance, and access standards. As the BCP advances in this new stage, it will be crucial to incorporate international best practices and ensure a participatory and inclusive process with all sector stakeholders.
The Paraguayan experience demonstrates that technology alone is not enough; it must be supported by robust regulation and an open payment infrastructure. Looking ahead, five strategic priorities are emerging:
It’s equally important that the central bank’s supervisory function over payment systems adheres to the principles of proportionality and consistency in applying supervisory standards, ensuring transparency and competition in the market.
In a region where fragmentation often hinders progress, Paraguay’s drive for interoperability and inclusion sets a relevant model. By leveraging these tools, Paraguay has the opportunity to significantly expand access to digital payments where financial inclusion becomes most tangible: at the last mile.
Source: blogs.worldbank.org
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