Colombia: PSE & Efecty

The Standard: PSE (Pagos Seguros en Línea)

Colombians are highly skeptical of using credit cards online due to historic fraud concerns. The market responded with PSE, an interface created by ACH Colombia that connects all major banks (Bancolombia, Davivienda, etc.).

PSE represents over 40% of all e-commerce transactions in Colombia. It functions similarly to iDEAL in the Netherlands: users select PSE at checkout, choose their bank, log in securely, and approve a direct push-payment. Because the transaction happens entirely within the user's banking ecosystem, chargebacks are non-existent.

Efecty: Bridging the Cash Divide

With roughly half the population remaining unbanked or underbanked, physical cash voucher systems are critical for inclusive growth. Efecty holds this crown in Colombia. Like OXXO in Mexico or Boleto in Brazil, Efecty allows a user to generate a voucher online, take it to one of thousands of physical Efecty kiosks nationwide, and hand over cash. The merchant is notified via API webhook instantly.

Credit Cards and Cuotas (Installments)

While PSE dominates, credit cards are still widely used, mostly for travel or high-ticket items. And exactly like the rest of Latin America, you must offer Cuotas (Installments).

Colombian consumers expect to divide purchases up to 36 months. Importantly, the merchant still receives the full settlement upfront, making Cuotas an incredibly powerful lever to increase Average Order Value (AOV) without taking on consumer credit risk.