Payment methods in El Salvador

International card schemes are the primary digital payment method in El Salvador. Banco Agrícola, Banco Cuscatlán, Banco Davivienda, and other commercial banks issue Visa and Mastercard debit and credit cards. Cards are used for both in-store and online transactions, and USD denomination removes any conversion costs for US-based merchants.

Chivo Wallet was the Salvadoran government's official Bitcoin and USD wallet, launched alongside the Bitcoin Legal Tender Law in September 2021. Over half of Salvadoran adults downloaded it to claim a one-time US$30 bonus. Usage declined sharply after the bonus was spent, falling to 8.1% of the population in 2024. Under the December 2024 IMF loan agreement, the government committed to winding down Chivo, removing mandatory merchant acceptance, and ceasing Bitcoin purchases. As of 2025, Chivo is being decommissioned.

Bitcoin was declared legal tender in El Salvador in September 2021 under the Bitcoin Law, making it the first country to do so. By 2024, practical usage had declined to 8.1% of the population, with only 1.1% of remittances involving crypto. The December 2024 IMF agreement removed the mandatory acceptance requirement for merchants. Bitcoin remains legally usable but is no longer a required payment method, and state involvement is being phased out.

Nequi, originally Colombia's leading digital wallet (backed by Bancolombia), has expanded into Central American markets including El Salvador. It provides a digital account accessible without traditional bank requirements, targeting the large unbanked and underbanked population segment.

El Salvador's commercial banks offer mobile banking applications enabling instant transfers, bill payments, and account management. With only ~30% formal banking penetration, remittance-linked accounts via operators such as Western Union and MoneyGram also serve an important role in channelling the US$7+ billion in annual remittances.