Claudia Sheinbaum’s Initiative for Digital Payments
Mexico City’s Mayor Claudia Sheinbaum, along with legislators, are working on two initiatives aimed at reducing cash usage and addressing abusive practices in financial institutions, including credit and debit card issues. These proposals aim to safeguard consumers’ wallets and enhance the quality of financial services.
Digitalization of Payment Systems
On October 9, Sheinbaum announced that the government would present a proposal to advance digital payment systems in Mexico, encouraging less cash usage. The strategy aims to be inclusive and accessible for everyone, transcending barriers like internet access.
Successful in countries such as Brazil and India, this digital scheme will strengthen security and promote a more formal economy, according to Sheinbaum. The Secretariat of Finance is already working on it, with a presentation expected soon.
Existing Digital Applications
Mexico already has digital applications like Cobro Digital (CoDi) and Dinero Móvil (Dimo), which were created to reduce cash usage. However, their adoption has been limited due to banks not actively promoting them since no commissions are charged.
Ricardo Monreal’s Initiative for Consumer Protection
Meanwhile, Ricardo Monreal, President of the Junta de Coordinación Política and coordinator of Morena’s parliamentary group in the Chamber of Deputies, introduced an initiative to reform the Ley para la Transparencia y Ordenamiento de los Servicios Financieros.
Protecting Credit and Debit Card Users
Monreal’s proposal aims to protect users of credit and debit cards issued by financial entities and commercial establishments from abusive practices. The reform prohibits banks and department stores from penalizing card cancellations, allowing users to cancel in person, over the phone, or digitally at any time.
Cancellation Process and Consumer Rights
The cancellation must be completed within three business days without additional costs, commissions, penalties, or excessive paperwork. This ends exploitative practices and ensures certainty for users.
Moreover, the proposal nullifies the issuance of cards without explicit consent, bans misleading advertisements about costs and charges, and mandates reimbursement for any unjustified charges, placing responsibility on the issuer rather than the customer.
Key Questions and Answers
- What are the two initiatives being discussed? Claudia Sheinbaum’s initiative aims to digitalize payment systems in Mexico, while Ricardo Monreal’s proposal focuses on protecting consumers from abusive practices in financial institutions, particularly regarding credit and debit card usage.
- Why is digitalization of payments important? Digital payment systems strengthen security, promote a more formal economy, and make financial services more accessible to everyone.
- What consumer rights does Monreal’s initiative protect? It ensures hassle-free card cancellations, prohibits penalizing cancellations, and mandates transparent communication about costs and charges.
