Evertec’s domination of Puerto Rico’s economy, in context

Evertec, Inc., based in San Juan, is a tech and financial services company that is vital to Puerto Rico’s economy. Founded in 1998, it began under the conglomerate banking institution Banco Popular. In 2013, it became independent and was listed on the New York Stock Exchange. Evertec is a leader in the electronic transaction processing industry and also plays a key role in the financial technology (fintech) industry. The industry focuses on using technology to provide digital financial services and solutions, aiming to make finance more accessible, efficient, and less expensive. Each year, Evertec processes over 10 billion transactions in Puerto Rico, Latin America, and the Caribbean. Operating in 26 markets and with around 1,200 employees, Evertec represents Puerto Rico’s rising role in fintech. However, its expansion has raised concerns about its market power.

Its purpose

Evertec runs the ATH network as Puerto Rico’s main ATM and PIN-debit system. It manages 80% of debit transactions and 70% of ATM transactions in the area. Most Puerto Ricans use it for its efficiency and accessibility, as it connects financial institutions across Puerto Rico and the Caribbean, and allows users to send and receive payments using only their phone number. Evertec offers a wide range of fintech services, including merchant acquiring, payment processing, core banking, cash fulfillment, digital banking, and risk management. 

Evertec, with VISA, gives people mobile payment solutions like ATH Móvil and ATH Móvil Business. These platforms let users easily send and receive money on their phones. It allows for quicker and safer person-to-person payments. Through these services, Puerto Ricans are able to actively participate in the local and regional financial system, increasing their access to technology-driven solutions that improve daily life and business operations.

United States regulation of Evertec in Puerto Rico

Evertec follows strict US regulations. This helps ensure compliance and protects consumers. The Federal Financial Institutions Examination Council (FFIEC) conducts reviews on a regular basis. The council includes the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and Puerto Rico’s Commissioner of Financial Institutions.

While with Banco Popular, Evertec had to follow the Bank Holding Company Act and Regulation K. This meant that they needed prior Federal Reserve approval for certain business activities. Today, the Consumer Financial Protection Bureau (CFPB) regulates Evertec. The federal government created this agency in 2011 under the Dodd-Frank Act. 

These regulations also give Puerto Ricans a measure of protection and influence, ensuring that the services they rely on meet federal standards while also allowing local voices to be represented in oversight processes.

Monopolistic concerns

Evertec has recently tightened its hold on Puerto Rico’s ATH interbank network. Since 2017, it has also expanded into payment processing areas like ATMs and mobile payments.

However, Evertec’s dominance has raised concerns. With little competition, its position creates high barriers for other fintech companies trying to enter Puerto Rico’s market. Platforms like Clover and Square—companies that provide direct solutions to fintech issues and have built-in payment processing tools and business management services—now face limitations in gaining users. Evertec’s money flow concentration and large user audience reduce competition, leading to less innovation and higher costs for merchants and users in Puerto Rico. Relying on a single fintech provider limits diversity and consumer choices.

For many Puerto Ricans, Evertec’s dominance also means being locked into a closed-loop system that doesn’t connect well with mainland financial networks. Sending money between Puerto Rico and the mainland US is often expensive and overly complicated. Wire transfers from Puerto Rico to US mainland banks often carry fees of around $25‑$50 per transaction, plus additional delays, while lower‑cost ACH transfers can take one to three business days. This financial isolation not only frustrates users in Puerto Rico but also reinforces economic inequality between the island and the mainland. Puerto Rican students, workers, and families often face barriers simply trying to move funds, split bills, or receive direct deposits from US-based institutions. Evertec’s control over the Puerto Rican economy may benefit local processing and transactions, but it simultaneously deepens the disconnect from national fintech innovation.

Due to its dominant market position, Evertec has considerable influence over how financial data and payments flow within the island’s economy. Since its independence in 2013, Evertec has thrived and grown at a rapid pace, expanding out of Puerto Rico and broadening its domination. It remains a reliable and efficient tool for users and businesses, but questions about its near-monopolistic stance in Puerto Rico’s economy raise concerns.