The Central Bank of Paraguay (BCP) has announced a reduction in interchange fees applied to credit and debit card transactions, injecting new life into the adoption of digital payments by micro, small, and medium-sized enterprises (Mipymes). This measure, effective July 1, 2025, is expected to reduce costs for SMEs and encourage the adoption of digital payment systems, contributing to overall economic revitalization.

According to the BCP's resolution, credit card transaction fees have been lowered from a maximum of 5% to 4%, and debit card transaction fees from a maximum of 3.5% to 3%. This reduction in payment fees, which had been a significant burden for sole proprietors and small business owners, is anticipated to encourage the use of digital payment terminals (POS) and, consequently, help increase sales and strengthen business competitiveness.

Gustavo Giménez, the Vice Minister of SMEs under the Paraguayan Ministry of Industry and Commerce (MIC), welcomed the BCP's decision as "very important news." He emphasized that "with millions of cards currently in circulation, every sale that doesn't accept card payments is a lost opportunity." He believes this measure will prompt more SMEs to utilize electronic payment methods. Furthermore, Vice Minister Giménez added that this fee reduction aligns with the Ministry of Industry and Commerce's active efforts to promote the digital transformation of SMEs, contributing to their formalization, increased sales, and enhanced competitiveness nationwide.

Accelerating Digital Transformation and Expanding Financial Inclusion for SMEs 

This fee reduction goes beyond simply cutting costs for SMEs; it holds significant meaning in accelerating the digital transformation of the entire Paraguayan economy and expanding financial inclusion. Traditionally, the SME sector, often reliant on cash transactions, hesitated to adopt digital payment systems due to high card fees and complex systems. However, with this measure lowering entry barriers, more SMEs are expected to introduce POS systems and actively accept card payments.

Adopting digital payment systems offers several advantages to SMEs. First, it reduces the hassle and risks associated with cash management, and transaction records are automatically logged, simplifying accounting and tax reporting. Additionally, businesses can attract customers who prefer card payments, potentially increasing sales, which can have an even greater impact on businesses targeting younger generations and tourists. Ultimately, it can also enhance the transparency of SMEs, positively influencing loan assessments by financial institutions.

Further Reductions Planned: Another Change Forecasted for July 1, 2026 

The BCP has stated that it will not stop at this initial fee reduction, with a second, additional reduction planned for July 1, 2026. This demonstrates the BCP's firm commitment to helping SMEs more stably integrate into digital payment systems and to long-term competition in the card payment market. Continuous fee reductions are expected to further alleviate the burden on SMEs and provide consumers with more diverse payment options, contributing to the overall activation of Paraguay's digital economy.

The BCP's decision clearly shows that the Paraguayan government recognizes SMEs as a key driving force of the national economy. SMEs significantly contribute to job creation and regional economic revitalization, and their growth leads to the prosperity of the entire nation. Therefore, this fee reduction is regarded as a crucial step towards strengthening the competitiveness of SMEs and, furthermore, for the sustainable development of the Paraguayan economy.

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