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Merchant guide

Colombia PSE and local PSPs for online merchants

PSE is Colombia's default online debit method, letting shoppers pay straight from their bank account. This guide explains how PSE works and how to choose a local payment service provider that also covers wallets and cash.

Why PSE is the default in Colombia

In Colombia, PSE (Pagos Seguros en Linea, or Secure Online Payments) is the standard way people pay online without a card. Operated by ACH Colombia, PSE connects a merchant's checkout directly to the shopper's own bank. The shopper picks PSE, is redirected to their bank's login, and authorises a direct debit from their savings or checking account. The money moves the same session, with no card number shared. Credit-card penetration in Colombia is only around a third of adults, so a checkout without PSE will miss a large share of buyers. PSE is used by tens of thousands of businesses and remains the dominant ecommerce transfer method even as newer instant rails appear.

  • PSE is a direct bank debit, not a card payment.
  • Shopper authenticates inside their own bank, so card details are never shared.
  • It reaches the large unbanked-or-card-light segment that still has a local account.
  • Registration on the PSE portal is free for the payer.

How a PSE payment flows at checkout

When a shopper reaches checkout and chooses PSE, your site redirects them to the PSE environment, where they select their bank and log in. They confirm the amount and the debit is authorised. Your provider receives the confirmation and you fulfil the order. The shopper only needs a registered email and a Colombian bank account or supported wallet; foreigners can register with a passport or foreign ID. PSE cannot pull from a foreign (US, UK, EU) account, so travellers and expats without a local account use cash networks instead. For the merchant, PSE confirmation is usually quick, but you should rely on your provider's webhook rather than assuming instant settlement.

  • Shopper selects PSE and is sent to their bank to authorise the debit.
  • Funds leave the shopper's account directly; no card network sits in the middle.
  • Foreigners can register with a passport or foreign ID, but need a local account to pay.
  • You reconcile through your provider's confirmation, not the bank statement alone.

Local wallets and cash you should also consider

PSE covers banked shoppers, but Colombian checkout usually needs more. Nequi (Bancolombia) and DaviPlata (Davivienda) are mobile wallets with tens of millions of users that many shoppers prefer over a bank transfer. Cash is still important for underbanked buyers, and networks such as Efecty and Baloto let a shopper generate a code online and pay cash at a corner store or kiosk. A complete Colombian checkout often pairs PSE with at least one wallet and a cash option. Your payment provider should support all of these under one integration so you are not stitching together several.

  • Nequi and DaviPlata are the leading mobile wallets.
  • Efecty and Baloto are cash-voucher networks for shoppers without a card or account.
  • Pairing PSE + wallet + cash maximises reach.
  • One provider covering all three simplifies reconciliation.

Choosing a local payment service provider

Colombia has a deep local PSP market. ePayco is a large Colombian gateway covering PSE, cards, wallets and cash. Wompi, built by Bancolombia, offers native PSE and Nequi acceptance with a developer-friendly API. PayU Colombia is a strong regional option if you also sell in other Latin American countries. PlacetoPay focuses on security and enterprise needs. Regional cross-border specialists such as dLocal and EBANX, and marketplaces such as Mercado Pago, also cover Colombia. Match the provider to your size and roadmap: a small local shop may want ePayco or Wompi, while a multi-country launch may prefer PayU, dLocal or EBANX. Always confirm PSE support explicitly, plus the wallet and cash methods you need.

  • ePayco: largest local gateway, strong cash coverage.
  • Wompi: Bancolombia-built, native PSE and Nequi.
  • PayU, dLocal, EBANX, Mercado Pago: good for multi-country launches.
  • PlacetoPay: enterprise and security-focused.

Onboarding, settlement and compliance

Colombian payments are supervised by the Superintendencia Financiera de Colombia (SFC). Your PSP handles most compliance, but you still provide business documents, KYC and, for cross-border sellers, a model for settling funds. Settlement is normally in Colombian pesos to a local account or to your overseas account through the provider's contract. Ask about payout timing, required documents, and whether the provider supports your industry (some verticals such as gaming or crypto are tightly regulated). A local PSP with strong compliance reduces your risk and speeds go-live.

  • SFC oversees payment providers in Colombia.
  • Settlement is usually COP to a local or contracted account.
  • Some verticals need extra compliance screening.
  • Confirm required onboarding documents up front.

Fees and what to confirm

Public pricing is only a first filter. Actual pricing changes with country, industry, volume, settlement currency, integration method and contract terms. Confirm against the provider's official pricing page or a written quote before you go live. In Colombia, get the PSE fee, the card fee, the wallet fee and the cash-voucher fee as separate lines, because they differ. Public starter rates from local PSPs commonly range from about 2.6 percent to over 4 percent plus a fixed peso amount per transaction depending on method and volume. These are only a filter; your contract, industry and volume change the real number. Read each provider's Colombia pricing page and request a written quote before you commit.

  • Request PSE, card, wallet and cash fees separately.
  • Watch fixed per-transaction peso fees on top of percentage.
  • Compare payout timing, not just headline rate.

Questions merchants ask

What exactly is PSE in Colombia?

PSE (Pagos Seguros en Linea) is a secure online debit system operated by ACH Colombia. At checkout it redirects the shopper to their own bank to authorise a direct debit from their savings or checking account. No card details are shared.

Can a foreigner pay with PSE without a Colombian bank account?

No. PSE only debits a Colombian bank account or a supported local wallet. A foreigner can register a PSE profile with a passport or foreign ID, but still needs a local account to actually pay. Shoppers without one use cash networks such as Efecty or Baloto.

Which Colombian PSP should a small merchant start with?

Many local merchants start with ePayco for broad method coverage including cash, or Wompi for native PSE and Nequi acceptance with a clean API. Choose PayU, dLocal or EBANX if you plan to sell across several Latin American countries from one integration.

Is PSE still relevant after newer instant rails launched?

Yes. PSE remains the dominant ecommerce transfer method for Colombian merchants. Newer central-bank instant rails are scaling but have not displaced PSE for checkout. Integrate PSE as the standard and add others as acceptance matures.

Public sources