A report from fintech Mono highlights how digital payment systems like Bre-B in Colombia boost economic growth and market formalization. According to the Bank for International Settlements, increased use of these payments correlates with rises in per capita GDP and declines in informal employment. Mono's CEO stresses the need to scale adoption for fiscal efficiencies.
The widespread adoption of digital payments has shifted from a matter of convenience to one with clear economic impacts, according to a case study by fintech Mono. It examines systems like M-Pesa in Kenya, UPI in India, PIX in Brazil, and Bre-B in Colombia, concluding that digitalization promotes growth, formalization, and fiscal efficiency.
The Bank for International Settlements (BIS), in an analysis of 101 economies, found that a one percentage point increase in digital payment use correlates with a 0.10 percentage point rise in per capita GDP growth rate over two years. It also links to a 0.06 percentage point drop in the informal employment proportion in the same period.
Bre-B, driven by the Banco de la República, has registered over 100 million keys and accumulated transactions exceeding 34 trillion pesos. About 75% of Mono's clients have a key registered in this system. Digitalization cuts cash handling costs, speeds up money circulation, and enhances cash flow for businesses and companies. Each transaction creates a verifiable record, helpful for accessing formal credit, particularly for micro and small enterprises.
Juan Camilo Poveda, CEO of Mono, states: “International evidence suggests that digitalizing public payments can generate significant fiscal efficiencies and, at the same time, contribute to formalization and inclusion. The challenge is to scale adoption with security, financial education, and interoperable infrastructure, and this is a task for the new government entering Colombia”.
FMI and McKinsey estimates show that, in developing countries, fully digitalizing government payments could save 0.8% to 1.1% of annual GDP by reducing logistical costs, leaks, and corruption risks. Mono enables Bre-B integration via APIs for collection and disbursement, including QR payments, automated reconciliation in under 20 seconds, and real-time mass payments for payroll and incentives.
