Visa Inc. reported a 21.6 percent growth in total payments volume in the region, excluding Brazil and Mexico, to reach a total of $62 billion, in the three months ending June 30. Transactions for Brazil and Mexico for the period weren't included in that total provided by Visa.

The rise in credit and debit card business in communities with previously entrenched cash spending habits showed more consumer confidence in online security.

Visa said the growth was boosted by a migration from cash to electronic payments with debit products recording the highest percent increase. Total debit payment volumes rose by 19 percent in Mexico, 32 percent in Brazil and 24.1 percent in all other Latin America and Caribbean countries for the same period, with consumers showing a growing preference for Visa debit products for their day to day purchases.

Likewise, the company said, credit payment volumes showed double-digit expansion, with 15.8 percent in Mexico, 17.6 percent in Brazil and 20.5 percent in all other Latin America and Caribbean countries.

Eduardo Erana, president of Visa Latin America and the Caribbean region, said the result reflected "a strong and growing payments system, with debit continuing its strong penetration and credit maintaining its historic levels of growth."

He said the increased use of debit cards meant debit transactions were driving growth in the business. He attributed the development to the added security, control and convenience of the debit products.

Analysts said the growth of card transactions in South America meant the region still risked a relapse in the sector if common online identity fraud scams and other banking-related crimes were allowed to go unchecked.

The growth showed that more South American and Caribbean residents, including those still unfamiliar with banking in the less developed communities, could be drawn to the ease of using a card instead of cash.

Erana said the increased use of debit cards "helps bring greater economic transparency and efficiencies to developing markets, and provides access to financial services for a wide variety of consumers, including those who may be unbanked or new to banking."

An Ipsos MORI study revealed some of the motivations for consumers to embrace debit as a substitute for cash in Latin America. Two-thirds -- 61 percent -- of the debit card users now prefer to use their debit card instead of cash.

More than half -- 56 percent -- of Latin American consumers who use a debit card said the cards made it easier to track spending and stay within a budget.

Analysts said the increased card use, while welcome, would put greater demands on governments and security services to develop better tools for monitoring of financial fraud, phishing and other Internet-based or money-related crimes.

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