Name
Global FinTech Guide
Country _ Name
Bolivia
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Bolivia’s attitude toward modern payment services—such as fintech platforms, digital wallets, cryptocurrencies, and cross-border e-payment systems—has been cautious, conservative, and highly regulated, especially when compared to regional trends.
Regulatory Stance

  • Highly restrictive on cryptocurrencies: In 2014, the Central Bank of Bolivia (BCB) issued Resolution No. 044/2014, which explicitly prohibits the use of any kind of cryptocurrency (e.g., Bitcoin) as a payment instrument or for any transactions. The Bank reaffirmed this position in subsequent years, warning the public of the risks and declaring crypto assets illegal.
  • Monetary sovereignty focus: The BCB has prioritized monetary stability and currency sovereignty, aiming to avoid parallel monetary systems or unregulated capital flows. This explains its opposition to decentralized financial technologies.
 Fintech and Digital Payments

  • Limited support for fintech innovation:
    Bolivia has a Supreme Decree which regulates FinTechs and states that they must be incorporated as financial entities and process their incorporation permit and operating license with the Bolivia's Financial System Supervisory Authority (ASFI) in accordance with the requirements established by this entity and the Financial Services Law.
  • Mobile banking and QR payments have grown:
    Within the bounds of traditional financial systems, Bolivia has supported the growth of mobile banking and QR-based payments, particularly through the national payment system (SNP) and ASFI.
    • Example: Banks and regulated financial entities are increasingly offering USSD, app-based transfers, and QR payments.
  • Focus on financial inclusion:
    Authorities prioritize access to banking services in rural and low-income areas. This has led to state-supported initiatives for digital access but under tight supervision.
Cross-Border Payments and Fintech Integration
  • Strict capital controls:
    Cross-border digital payment services (e.g., PayPal, Stripe, Wise) operate with restrictions or limited functionality in Bolivia. This is tied to exchange control measures and AML/CFT concerns.
  • Foreign platforms operate cautiously:
    International digital wallets and fintech apps often do not fully support Bolivian accounts or cards due to regulatory complexity and currency exchange issues.


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

In Bolivia, providing payment services or ancillary financial services is subject to strict regulation and state control. The legal framework focuses on financial system integrity, consumer protection, and monetary sovereignty.
Legal and Regulatory Framework

  • Financial Services Law (Ley N° 393, 2013)
    The main law governing financial services, including payment systems, financial intermediaries, and fintech-like services.
  • Regulations issued by ASFI
    The Financial System Supervisory Authority (ASFI) is the regulatory and supervisory body. It issues binding regulations that govern licensing, operations, risk management, and reporting.
  • Central Bank of Bolivia (BCB)
    Oversees the National Payment System (Sistema Nacional de Pagos – SNP) and monetary policy. BCB authorization is required for any entity involved in clearing or settlement.
Who Can Offer Payment Services?
Only authorized financial institutions can offer payment services. These include:

  • Banks
  • Credit unions (savings and credit cooperatives)
  • Non-bank financial institutions (IFNB)
  • Specialized payment service providers approved by ASFI
Fintech companies must partner with or become regulated entities to operate legally.



Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

The Supreme Decree limits its scope to Fintech companies incorporated in Bolivia; that is, companies currently operating from abroad in the country would be, at least preliminarily, excluded from the scope of the regulation and would not be required to incorporate locally to continue operating. Furthermore, the ASFI's jurisdiction and territorial authority would hinder any potential attempt to regulate entities abroad. If the regulation were to seek to extend to these entities indirectly, it is most likely that, given the size of the Bolivian market, they would choose to stop offering their products or services in the country. This, in the current economic context, would be unfavorable.
According to the new regulation, Fintech companies must establish themselves as financial institutions and process their incorporation permit and operating license with the ASFI (Spanish Financial Institutions Association) in accordance with the requirements established by this entity.
These companies will be able to develop their services in the field of solutions using Blockchain, Tokenized Assets, Virtual Assets, and/or Virtual Asset Service Providers; payments; financing platforms; business technologies; and other services that ASFI may incorporate. iv. Regulation of payment services / requirement of a license.

Regarding Virtual Asset Service Providers, it is understood that only technological innovation companies in the areas of financial services, securities markets, and insurance would be subject to the scope of the Supreme Decree.

Consequently, providers that offer services linked to virtual assets, but that do not fall within the three regulated sectors—financial services, securities markets, or insurance— (for example, developers of NFTs for artistic or collectible purposes, or blockchain-based solutions aimed at digital security in other areas), should be excluded from the scope of the regulation issued by the ASFI.

However, the regulation is not clear as to what exactly is meant by "financial services, securities markets, and insurance," nor how it will be determined whether a provider qualifies as a technological innovation company under this definition. Therefore, preliminary, the application of the Supreme Decree's provisions to the different types of Virtual Asset Service Providers remains uncertain and will largely depend on the regulations issued by ASFI within the expected timeframe.

Furthermore, in line with Administrative Resolution UIF/19/2025 of April 16, 2025, issued by the Financial Investigation Unit (UIF), it is established that the operations of Virtual Asset Service Providers will be within the scope of the Supreme Decree's regulations provided they are carried out for profit, for or on behalf of another natural or legal person. In this sense, operations carried out by natural and/or legal persons for the personal use of virtual assets, such as their acquisition for personal use or for the payment of services, products, or investments, would be excluded from its scope of application.

Consequently, it will be essential to await the regulations issued by ASFI to more clearly define which asset categories and types of providers will ultimately be subject to the new regulatory framework.



Economic conditions

Market size for payment services and biggest payment service providers

In 2024 Bolivia’s payment ecosystem—which includes credit and debit cards, mobile wallets, electronic transfers, and checks—processed a total of 1003.8 million transactions, reaching a record value of B$1000,2 billion. This represents a year-on-year increase of 116% in volume and 18% in value, compared to 2023.

December 2024 alone recorded a notable 20.1% nominal increase in card payment value, alongside an 11.9% growth in credit and debit cards transaction volume compared to the previous month, reflecting a strong year-end surge in consumer activity. (https://www.linkedin.com/pulse/credit-debit-cards-market-bolivia-december-2024-federico-juan-melli-arbvf/)

Crypto and virtual asset transactions
Since legalizing crypto in June 2024, electronic payment (including virtual assets) grew from US $46.5 million H1 2024 to US $294 million H1 2025—a 530% increase, with over 10,000 operations totaling US $430 million. (https://www.reuters.com/sustainability/boards-policy-regulation/bolivia-crypto-transactions-up-over-530-amid-currency-woes-2025-06-27/?utm_source=chatgpt.com).

Traditional Banks & Card Networks
  • Banco Mercantil Santa Cruz (BMSC): Bolivia's largest bank by assets, key shareholder of Red Enlace (national card switch) supporting debit and credit transactions
  • Banco Nacional de Bolivia (BNB), Banco Mercantil, Banco Económico, Banco BISA: collectively control ~80% of credit card portfolios
  • Debit Market: Banco Unión leads with ~37% commission market share, followed by BMSC (~14%) and Banco Ganadero (~12%).
Mobile Wallets & QR-based Platforms International & Cross-border Payment Platforms

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

Bolivia is experiencing a severe shortage of U.S. dollars, with foreign exchange reserves depleted and liquidity hanging by a thread.

The official exchange rate (˜ 6.9 BOB/USD) is artificially maintained, while a large parallel market trades at more than 50% premium, creating multiple exchange rates.

Financial dollarization is widespread, with over 90% of deposits and loans dollarized, indicating growing informal reliance on USD.

Foreign exchange reserves have fallen from billions in past years to barely $1–2 billion, with only around $47 million in liquid FX by end-2024, putting significant pressure on BCB’s ability to support imports or defend the peg.
Implications for FinTechs:

  • Cross-border payments, FX services, and remittance platforms face friction due to strict capital controls and limited USD availability.
  • Access to international payment networks or repatriating profits can be difficult due to regulatory restrictions and liquidity constraints.


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