Payment methods in Guatemala in 2025: trends and consumer habits

The evolution of payment methods reflects digital transformation and changes in consumer preferences. Adapting to local particularities has become an essential requirement to provide an efficient and secure payment experience.

In this article, we will analyze trends in payment methods in Guatemala, the most relevant local payment methods, and the most popular among consumers, so you can adapt your business strategy in this market.

The evolution of payment methods in Guatemala

The payment culture in Guatemala has changed significantly in recent years, driven by digitalization, increasing smartphone penetration, and the rise of e-commerce.

E-commerce has been one of the main drivers of this transformation, so much so that significant growth of Guatemalan e-commerce is forecasted in the coming years. According to Payments and Commerce Market Intelligence data, e-commerce volume in Guatemala will increase from US$2.7 billion in 2024 to US$5.3 billion in 2027, with an impressive compound annual growth rate of 26%. This reflects an expanding digital market and a clear change in Guatemalan consumers’ payment habits.

Rapidly growing e-commerce

Guatemala is evolving rapidly towards e-commerce. Since the pandemic, the number of online stores has almost doubled. This is due to two factors: lockdown measures that affected physical store access, and changes in customer consumption habits that led to an increase in home shopping.

As a result, more and more businesses are looking for an online payment platform that can take advantage of this surge in home shopping.

Shopping through social media

Sales through social media platforms like Facebook or Instagram have increased in recent years. They have become a more accessible way for merchants to showcase their product catalog online without needing a dedicated website.

Additionally, Guatemalan influencers play a key role in promoting products on social media because they have loyal audiences that trust their recommendations. Companies leverage this reach to attract potential new customers.

Cash remains present

Although digital payments are gaining ground, cash retains a fundamental role, especially among older adults, unbanked users, and rural areas. Its use varies greatly depending on region and socioeconomic profile and continues to be the most used method for small purchases and payments in local shops.

Low adoption of wallets

Despite growing adoption of digital wallets in Guatemala, apps like Google Pay and Apple Pay have very low reach compared to Europe. The main barrier is limited acceptance by local merchants, which hinders usage and reinforces dependence on cash.

Cash and e-commerce, a Guatemalan combination

The coexistence of cash and e-commerce has led to a widely used practice in Guatemala: cash on delivery. This is a traditional payment method used in online commerce in the country, where the customer pays in cash upon receiving the order, avoiding cards or bank accounts.

Cards, the alternative payment method to cash

The use of cards has grown in Guatemala, establishing itself as one of the most relevant payment methods within the financial system. They have recently surpassed cash due to their importance in physical stores, e-commerce, and social media purchases.

Emerging Payment Methods

In Guatemala, we find some local payment methods such as Fri, Cuik, and Zigi. However, they are far from being the most used, as their usage volume cannot be compared to other dominant methods like cards or cash. We are talking about growing digital solutions that stand out for their innovation and their use in small businesses.

What are the most popular payment methods in Guatemala?

The global dominance of cards also applies to Guatemala. Despite being a country in the process of digitalization, digital payment methods are present in stores.

• Debit and credit cards

Cards have replaced cash as the preferred payment method for Guatemalans. This shift occurred in 2023 when 55% of respondents reported using cards, according to a McKinsey study. As technology advances, more people prefer card payments due to ease and security.

• Cash

Despite losing prominence, cash remains the second favorite payment method in Guatemala. According to the Report of the Governor of the Bank of Guatemala, cash in circulation grew by 8.9% year-on-year in 2024.

Its growth is mainly driven by older adults, unbanked individuals, and rural areas, as well as its use for small purchases and local transactions, where consumers value control over spending. Nowadays, it is an essential payment method in Guatemala.

• Bank transfers

For banked users, bank transfers have become a consolidated method. According to the Bank of Guatemala, in the first three months of 2025, the daily average of transfers reached US$87.5 million, a 25% increase compared to the same period in 2024.

This growth highlights the importance of transfers as a key payment method in the country, for both domestic operations and international remittances.

Local payment methods in Guatemala

Guatemalan payment solutions

Guatemala is in full transition towards a mixed payment ecosystem. In addition to traditional methods like cash, digital solutions are gradually appearing. However, there is a third player referring to local payment methods.

Tigo Money

What is Tigo Money?

Tigo Money is a digital wallet provided by the operator Tigo in Guatemala that allows users to make payments, transfers, and top-ups directly from their mobile phone. It is a local solution for fast and secure payments within the country.

How does Tigo Money work?

1. The user downloads the Tigo Money app and links their account or card.
2. They can send money to other users, pay for services, or top up mobile credits.
3. Transactions are authorized via PIN or biometric authentication.
4. The merchant or recipient receives real-time payment confirmation.

What is Tigo Money used for?

• P2P transfers: sending and receiving money between Tigo Money users.
• Payments in physical stores: paying in partner stores using QR code or app.
• Online payments: purchasing in e-commerce that accept Tigo Money.
• Top-ups and services: recharging mobile credits and transport cards; also for paying public services.
• Remittances or aid payments: receiving payments from family or government subsidies.
• Splitting expenses or requesting money: transferring funds between users without an IBAN, only using a mobile phone.

Fri

What is Fri?

Fri is a Guatemalan digital wallet that allows users to send and receive money, pay in stores, and receive payments in businesses through their mobile phone. It is a local solution designed for fast, simple, and secure payments within the country.

How does Fri work?

1. Users download the app and create an account by linking their phone number and, optionally, their bank account.
2. They can send money to other users, pay in stores, or receive payments via QR or payment link.
3. Transactions are confirmed via PIN or biometric authentication.
4. The store or recipient receives payment confirmation in real time.
   

What is Fri used for?

• P2P transfers: sending and receiving money between Fri users.
• Payments in physical stores: paying at affiliated stores via QR or payment link.
• Online payments: shopping on e-commerce platforms that accept Fri.
• Business collections: receiving payments from customers quickly and securely.
• Requesting money or splitting expenses: sending payment requests instantly between Fri users.
  

Zigi

What is Zigi?

Zigi is a Guatemalan digital neobank backed by Banco Industrial that offers full financial services through mobile phones. It allows sending and receiving money, making payments, receiving remittances, and requesting microloans, focusing on convenience and security.

How does Zigi work?

1. Users download the Zigi app and register their mobile number.
2. It can be linked to a bank account or use the Zigi Mastercard debit card.
3. Transactions are authorized via PIN or biometrics.
4. Merchants receive real-time payment confirmation and can collect via QR or payment link.

What is Zigi used for?

• P2P transfers: sending and receiving money between Zigi users or to other local banks.
• Payments in physical stores: paying at affiliated stores using QR.
• Online payments: shopping on e-commerce platforms that accept Zigi.
• Instant microloans: requesting small loans directly from the app.
• Remittances and international collections: receiving money from abroad quickly.
• Zigi debit card: withdrawing cash or paying at any Mastercard merchant.

Cuik

What is Cuik?

Cuik is a payment and transfer system in Guatemala that allows money transfers between banks using only the recipient’s phone number. It is widely used for fast, secure, and instant transfers within the country.

How does Cuik work?

• Users access Cuik through the Banco Industrial app or other integrated platforms.
• To send money, only the recipient’s phone number is needed.
• Transfers are processed in real time, and the recipient receives immediate notification.
• It also allows in-store payments via QR, connecting to the VisaNet system.

What is Cuik used for?

• P2P transfers: sending and receiving money between banks using only a phone number.
• Payments in physical stores: paying at affiliated stores via QR.
• Service payments: sending money for services or products via Cuik.
• Business collections: receiving payments from customers instantly and cash-free.

Advantages of integrating local payment methods into your business

If you are considering expanding your business into the Guatemalan market, integrating local payment methods can be a differentiating factor.

Builds more consumer trust

Users generally trust payment methods they know and use daily. In Guatemala, Tigo Money is widely known. Although there is room for improvement, this payment method generates security and familiarity, especially among young users and in urban areas.

Ensures regulatory compliance and maximum security

Local payment methods comply with national financial regulations and security standards for electronic transactions. This provides greater protection against fraud and unauthorized payments, increases consumer trust, reduces legal risks for your business, and ensures smooth integration with local banking systems.

By not requiring the exchange of sensitive data directly with the merchant and using secure authentication methods, these local methods help reduce the risk of fraud.

Improves your e-commerce conversion rate

Integrating the local payment methods most frequently used by Guatemalans simplifies the checkout process and generates confidence at the key moment of payment.

Access to a more diverse audience

In Guatemala, where not all consumers have access to credit or debit cards, providing local options like Tigo Money allows you to reach a broader audience, including unbanked users or those who prefer fast and secure digital solutions.

Local payments in Guatemala: the best solutions for businesses and merchants

Optimize your in-person and online payments with PaynoPain’s virtual POS

Guatemala presents a transitional market, where traditional, digital, and local payment methods coexist. To operate effectively, it is key to have a payment provider that allows acceptance of local options like Tigo Money, processes transactions in the local currency, the quetzal, and at the same time offers solutions for international payments.

Adopting this approach not only improves conversion but also promotes financial inclusion, allowing more customers to access your products or services. At PaynoPain, we can help you implement payment solutions tailored to the specific needs of Guatemala. Contact us through our form and let’s start optimizing your presence in this market.