Market Snapshot and Key Facts
Chile’s nominal GDP is the fifth largest in Latin America and among the highest in per capita terms, after Puerto Rico and Uruguay. Strong institutions, a freely floating peso and one of Latin America’s broadest trade agreement networks keep the economy resilient even when commodity prices fluctuate.
Key Statistics
Chile’s 19.5 million people—about the size of the Netherlands—punch well above their weight economically:
- Nominal GDP sits between $346 billion and $362 billion for 2025 while purchasing-power figures reach about $746 billion—more than twice the nominal size.
- Real growth of 2.4% forecasted for both 2025 and 2026 demonstrates steady momentum rather than post-boom fatigue.
- GDP per capita reaches $14,579 nominal and $30,183 PPP—among Latin America’s highest average incomes.
- Chile has built the digital infrastructure to facilitate business growth: cards handle almost 60% of online purchases and mobile wallets are capturing double-digit market share fast.
- Chile’s open-trade mindset drives these numbers. More than 29 free trade agreements cover over 65 partner countries. China, the United States, Brazil and the European Union dominate merchandise flows, supplying the mix of consumer goods and industrial inputs that fuel e-commerce volumes.
- Inflation has cooled to 4.4% in 2025 after the pandemic surge and is projected to ease to 3.3% next year. This gives the central bank room to hold its policy rate near 4.75% while supporting growth.
- Unemployment sits around 8.6-8.7%—above pre-COVID lows yet manageable for a labour market in transition.
Post-pandemic fiscal discipline keeps public debt in check, reinforcing the stability reputation that international investors value.
Digital and E-Commerce Landscape
Digital adoption races ahead of headline GDP growth. Mobile phone subscriptions already exceed the total population with fixed-line broadband penetration among Latin America’s best. Government programmes target wider fibre coverage and SME digitalisation, accelerating online consumption even in smaller cities.
The fintech boom has made mobile wallets and QR codes common from street kiosks to luxury retailers. Deregulation, venture funding and strong demand for alternative credit fuel this growth.
When you price in pesos and accept local cards, you’ll see much higher authorisation rates than when using foreign rails. High bandwidth, consumer trust in digital payments and a vibrant startup scene create an audience that’s both tech-savvy and open to new payment experiences.
Top Payment Methods and Consumer Preferences
Chile’s checkout landscape varies dramatically across channels and demographics. Commuters tap debit cards on the metro, teenagers pay for street food with QR codes and rural shoppers print cash vouchers for online orders.
Getting your payment mix right significantly impacts your success.
Cards and Local Rails
Payment cards dominate the landscape. Redcompra-branded debit cards drive roughly 60% of in-store spend, reflecting the country’s near-universal bank account ownership. Online, credit cards handle close to 59% of transaction volume.
Authorisation success depends on local routing. Nearly 70% of all card payments run over domestic schemes, so processing within Chile increases approval rates and avoids cross-border interchange markups.
Transactions ultimately pass through Transbank’s Webpay gateway but regulatory changes removed its monopoly, allowing international PSPs to connect directly to the network.
Visa and Mastercard enjoy broad acceptance while American Express appears mainly in travel and luxury retail.
Chileans often use credit cards as revolving debt tools rather than daily spend methods, leading to higher average order values but a preference for debit in recurring subscriptions.
Digital Wallets and Bank Transfers
Smartphone penetration above 85% drives explosive wallet growth. MACH, Mercado Pago and Tenpo already crowd the top of Chile’s app charts with wallets projected to reach 24% of in-person payments by 2030.
Younger consumers appreciate the simplicity of scanning a QR code. Many wallets offer virtual cards or prepaid balances, allowing users to bypass traditional banking altogether.
Bank transfers matter in larger-ticket e-commerce with about 15% of online purchases settling via direct transfer through Banco de Chile, Santander or state-owned Banco Estado. Reliability and perceived safety drive this choice.
Funds move instantly within the domestic clearing system and buyers avoid sharing card data online.
Cash and Vouchers
Cash remains strong, especially outside Santiago. Up to 35% of consumers still prefer paying with notes and coins when possible. Voucher services bridge this gap: customers print bar-coded vouchers at checkout, pay with pesos at the nearest convenience store and merchants receive instant confirmation.
This bridge between online storefronts and offline wallets helps you reach older buyers or communities with limited internet coverage. While government financial-inclusion campaigns and widespread QR adoption gradually reduce cash share yearly, it will remain significant for the foreseeable future.
Offering voucher payment builds brand trust beyond major cities and reduces failed transactions caused by card mistrust. Reconciliation is straightforward—vouchers settle in bulk daily, though you’ll need to account for small service fees and one-day settlement delays versus real-time digital options.
Currency, FX and Settlement Rules
Chile runs a fully floating peso (CLP) exchange-rate system with no blanket restrictions on capital flows. Local acquirers clear payments through the formal banking system with funds typically reaching your account within days.
Taxation and Cross-Border Considerations
Tax compliance becomes crucial once you start collecting pesos. You must charge 19% IVA on most sales, pay customs duties when goods cross borders, issue invoices through the SII’s electronic platform and apply withholding tax before profits leave the country.
IVA and Tax Obligations for Foreign Merchants
Chile’s standard 19% IVA (Impuesto al Valor Agregado) applies to almost all goods and services, including digital products sold by non-resident platforms. When supplying consumers directly, you must register with the tax authority and file monthly returns through the SII’s online portal, even without a local entity.
Permanent establishment rules trigger corporate income tax at 25% under the SME full-imputation regime or 27% in the partially integrated system. Dividend remittances attract 35% withholding tax, though double-tax treaties or the SME regime allow crediting of local taxes to reduce effective rates.
Recent reforms favour smaller players. Qualifying SMEs pay only 12.5% corporate tax until 2027 and make lower monthly provisional payments. Penalties for late IVA filings or unpaid withholding range from fines to temporary business shutdowns.
SII Electronic Invoicing Requirements
Electronic invoicing has been mandatory nationwide since 2014. Every sale must generate a DTE (Documento Tributario Electrónico) that passes real-time validation by the Servicio de Impuestos Internos.
Most exporters issue a Factura Electrónica while retailers use the lighter Boleta Electrónica for B2C sales. You must store validated files for at least six years and make them available during tax audits.
Integration options range from the SII’s free web portal to API-based gateways feeding invoices directly from your ERP.
Growth Drivers and Opportunities for Global Businesses
Chile combines high digital adoption with strong rule of law and Pacific Alliance membership, creating an ideal launchpad into Latin America. Policy initiatives focused on innovation and clean energy, backed by comprehensive trade agreements, open fresh revenue streams across multiple sectors.
Government and Trade Initiatives
Successive governments have expanded free trade agreements, cutting tariffs and paperwork for markets from China to the EU. Regulatory simplification continues through digital permitting and faster company registration, improving your speed to market.
A national digital transformation agenda directs public and private investment toward broadband, cybersecurity and e-government, creating demand for payment integrations and cloud services.
Fiscal rules maintain debt sustainability, reassuring foreign investors that business-friendly policies will outlive political cycles. These initiatives give you tariff advantages, predictable tax planning and rapidly improving digital infrastructure.
Sector Hotspots
Renewable energy projects—particularly solar in the Atacama Desert and onshore wind in the south—offer long-term contracts for suppliers of finance and hardware.
Fintech thrives as banks, telecoms and retailers seek open-API partners to reach unbanked customers amid 88% smartphone penetration. E-commerce platforms selling Chilean wine, fresh fruit and salmon benefit from simplified export processes and affluent urban shoppers.
Digital services, from cloud hosting to B2B SaaS, address productivity gaps identified by policymakers and attract R&D spending incentives. Entering these growth sectors provides you with reliable demand today while positioning for broader regional expansion tomorrow.
Best Practices for Accepting Payments in Chile
Processing payments in Chile requires adapting to Redcompra’s debit dominance, multi-acquirer competition and mobile wallet preferences among younger consumers. These practices help you maximise conversion while navigating CMF regulations in Latin America’s most stable economy:
- Route cards through local acquiring for higher approval rates. Domestic acquiring improves authorisation rates by routing through Chilean issuing banks with proper BIN recognition. Local processing reduces false declines that lose legitimate sales from cross-border routing issues.
- Integrate Redcompra debit as a primary option. Redcompra handles most of the point-of-sale spend and remains Chile’s dominant payment method. Display debit prominently because many Chileans prefer it over credit cards for everyday purchases.
- Support MACH and Mercado Pago for mobile shoppers. Digital wallets handle over some of the online checkouts and dominate among urban millennials. Display wallet options prominently on mobile where most traffic converts.
- Enable Khipu instant bank transfers. Real-time bank transfers appeal to customers who trust direct bank connections more than sharing card details. Integration provides instant confirmation without card processing fees.
- Offer Servipag and Sencillito to reach cash-preferring segments. Cash vouchers serve unbanked populations and customers who distrust online card payments. These networks extend reach beyond the 88% internet-connected population.
- Price in Chilean pesos with transparent conversion. Consumers abandon checkouts displaying USD or EUR pricing because they want exact CLP costs. Display exchange rates clearly on invoices to prevent chargeback disputes.
- Test checkout on Chilean mobile networks. Mobile commerce drives over 65% of e-commerce but network performance varies by region. Verify payment flows work on actual devices using local carriers before launch.
- Deploy 3DS with smart friction management. Strong authentication is increasingly expected but excessive friction damages conversion. Apply step-up challenges selectively based on risk scoring rather than challenging every transaction.