MEXICO CITY (El Universal).— The payments market in Mexico is in a transitional stage marked by the adoption of new technologies and payment methods. As the digital economy grows, digital wallets are gaining ground, with the projection that they will represent 37% of e-commerce spending in the country in 2027, according to the “Global Payments Report 2024” prepared by the firm Worldpay.
According to the document, by 2023, digital wallets already accounted for 28% of the value of e-commerce payments in Mexico. Despite this growth, cash remains king at point-of-sale terminals, representing 38% of the value of transactions in stores during the same year of analysis.
Although cash prevalence is expected to decline 4% by 2027, it is still projected to account for 34% of terminal spending, highlighting the persistence of this payment method in the country.
Regarding the use of alternative payment methods, the report highlights that postpaid remains important for Mexican consumers who rely on cash to make online purchases, representing 7% of e-commerce spending in 2023.
Meanwhile, he highlighted that the payment method developed by the Bank of Mexico, DiMo (Dinero Móvil), which facilitates operations by allowing transactions with only knowing the recipient’s phone number, has sparked interest among the main players in the payment ecosystem and banks.
Thus, Mexico is positioned as a key market in Latin America, with high potential for the expansion and diversification of payment methods, adapting to the needs of its consumers and promoting financial inclusion.
“Mexico can become the largest trade market in Latin America despite not being the largest in population. The main challenge for the country is to keep up with this frenetic movement of change. There is a lot of new regulation to come and it is also the market that is geographically best located for cross-border e-commerce and is the number one tourism destination in Latin America,” said the current general manager of Worldpay for Latin America, Juan Pablo D’Antiochia.
Currently, the e-commerce market in Mexico has an estimated value of 58 billion dollars, which makes it the twelfth largest in the world. On the other hand, the point-of-sale sales market reaches a movement of 618 billion dollars, ranking as the thirteenth in the world.
Marked trend
Meanwhile, the global trend shows a growing adoption of digital wallets, which in 2023 accounted for 50% of global spending on e-commerce and 30% at points of sale.
This global trend reflects a shift toward more convenient — and, above all, secure — payment methods as e-commerce grows at an accelerated pace, outpacing the growth of physical points of sale.
Digital media In full growth
The payments market in Mexico is in a marked stage of transition.
Also at a global level
The report predicts that e-commerce growth will continue globally, reaching 17% of total trade by 2027, driven by the adoption of new payment technologies and the increasing preference for digital wallets.
With great courage
Currently, according to the “Global Payments Report 2024” released yesterday, the e-commerce market in Mexico has an estimated value of 58 billion dollars, which positions it as the twelfth largest in the world, and it is sure to continue growing.
#Goodbye #cash #Mexico
2024-09-07 14:53:14
Table of Contents
The Evolving Payments Landscape in Mexico: Embracing Digital Transformation
Mexico’s payments market is undergoing a significant transformation, driven by the adoption of new technologies and payment methods. As the digital economy continues to grow, digital wallets are gaining popularity, with projections indicating they will represent 37% of e-commerce spending in the country by 2027 [[1]]. This shift towards digital payments is likely to have a profound impact on the way Mexicans make transactions, both online and offline.
Cash Remains King, but Digital Wallets are Gaining Ground
Despite the growth of digital payments, cash remains the preferred payment method at point-of-sale terminals, accounting for 38% of transactions in 2023 [[1]]. However, cash prevalence is expected to decline by 4% by 2027, with digital wallets and other alternative payment methods filling the gap [[1]].
Alternative Payment Methods on the Rise
Postpaid payment methods, which allow consumers to make online purchases with cash, remain important for Mexican consumers, representing 7% of e-commerce spending in 2023 [[1]]. Additionally, the Bank of Mexico’s DiMo (Dinero Móvil) payment method, which enables transactions using only the recipient’s phone number, has sparked interest among major players in the payment ecosystem and banks [[1]].
Mexico: A Key Market for Payment Method Expansion
Mexico is positioned as a key market in Latin America for the expansion and diversification of payment methods, with high potential for growth and financial inclusion [[1]]. The country’s e-commerce market is valued at an estimated $58 billion, ranking 12th globally, while the point-of-sale sales market reaches a movement of $618 billion, ranking 13th globally [[1]].
Global Trend: Digital Wallets on the Rise
The global trend shows a growing adoption of digital wallets, which accounted for 50% of global e-commerce spending and 30% of point-of-sale transactions in 2023 [[1]]. This shift towards digital payments reflects a desire for more convenient and secure payment methods as e-commerce grows at an accelerated pace, outpacing the growth of physical points of sale.
Popular Payment Methods in Mexico
In Mexico, popular payment methods include OXXO, BBVA, SPEI, Mercado Pago, PayPal, and MasterCard [[2]][[3]]. These payment methods cater to the diverse needs of buyers, merchants, banks, and others, offering a range of options for online and offline transactions.
Conclusion
The payments market in Mexico is undergoing a significant transformation, driven by the adoption of new technologies and payment methods. As digital wallets and other alternative payment methods gain popularity, cash prevalence is expected to decline. Mexico’s e-commerce market is poised for growth, and the country is well-positioned to become a leader in payment method expansion and diversification in Latin America.
References:
Popular payment methods in Mexico
The Evolving Payments Landscape in Mexico: Embracing Digital Transformation
Mexico’s payments market is undergoing a significant transformation, driven by the adoption of new technologies and payment methods. As the digital economy continues to grow, digital wallets are gaining popularity, with projections indicating they will represent 37% of e-commerce spending in the country by 2027 [[1]]. This shift towards digital payments is likely to have a profound impact on the way Mexicans make transactions, both online and offline.
Cash Remains King, but Digital Wallets are Gaining Ground
Despite the growth of digital payments, cash remains the preferred payment