Introduction to the Shift in Payment Methods
Carrying cash is becoming less common, especially among younger generations and with the adoption of digital payment methods like transfers. This shift compels small, medium, and microenterprises (SMEs) to diversify their payment options beyond cash.
The Role of Jaime Márquez and the STP
Jaime Márquez, the Executive Director of Business Development at the Sistema de Transferencias y Pagos (STP), explains that cash usage is expected to halve to 50% by 2030.
Current Payment Trends
Currently, 85% of transactions under 500 pesos are conducted in cash. Meanwhile, 10% of Mexicans prefer physical cards and 4% opt for transfers via SPEI, CoDi, and Dimo, according to the National Inclusion Financial Survey (ENIF).
Challenges Faced by SMEs
As preferences for card or transfer payments rise, SMEs must offer these payment methods to boost sales. However, challenges remain, such as the cost of traditional terminals and transaction fees.
Financial Literacy and Credit Access
David Lask, General Director of Tala Mexico, highlights the lack of financial education among SMEs, which limits their ability to maintain a business-specific bank account. Additionally, there’s a misconception that credit should only be sought during emergencies.
SMEs can request credit to improve their business with new furniture, invest in work tools, or expand. Historically, credit has been sought only during crises, but it can also be viewed as productive credit.
Projections for 2030: Less Cash, More Digital Payments
Jaime Márquez anticipates that by 2030, cash transactions will constitute only 50% of all payments, with a significant increase in transfer usage. The growth of the fintech sector, banking, and overall business digitalization will lead to a substantial reduction in cash handling.
Márquez encourages SMEs to diversify payment methods, as this enhances their liquidity. Delays in receiving payments from clients and suppliers (usually one to two days) can be mitigated by offering various payment options.
Benefits of Diversified Payment Methods
“For SMEs, the ability to receive income promptly not only helps cover emergencies but also encourages inventory purchases and business expansion,” explains David Lask.
Key Questions and Answers
- What is driving the shift away from cash? Younger generations and the adoption of digital payment methods like transfers are leading to less cash usage.
- What challenges do SMEs face in adapting to digital payments? Costs associated with traditional terminals and transaction fees, along with a lack of financial education and misconceptions about credit usage, pose challenges.
- What does Jaime Márquez predict for cash usage by 2030? He anticipates that cash transactions will constitute only 50% of all payments by 2030, with a significant increase in transfer usage.
- Why is it important for SMEs to diversify payment methods? Diversification enhances liquidity, as delays in receiving payments from clients and suppliers can be mitigated by offering various payment options.
