The Dominant Payment Methods in Mexican E-commerce
According to the Association of Mexican Online Sales (AMVO), eight out of ten Mexicans who shop online use digital cards or SPEI electronic transfers, confirming their dominance as the most preferred payment methods in national e-commerce.
Who is Daniela Orozco and Why is She Relevant?
Daniela Orozco, the Director of Market Intelligence and Studies at AMVO, plays a crucial role in understanding the digital payment landscape in Mexico. Her insights provide valuable context regarding consumer behavior and financial institutions’ competitive strategies.
Key Findings from the AMVO Study
- Usage of Digital Cards and Transfers: Eight out of ten online shoppers in Mexico use digital cards or SPEI transfers, making them the most popular payment methods.
- Sophisticated Digital Shoppers: Mexican online shoppers are becoming more sophisticated, with 80% having debit cards and half possessing credit cards. On average, each user holds three financial products.
- Average Spending: The study surveyed 422 adult internet users and found that 59% occasionally shop online, while 32% do so intensively, with an average monthly spending of 2,610 pesos on digital purchases.
- Millennial and Generation Z Shoppers: Millennials account for 40% of online shoppers, followed by Generation Z at 32%. This group exhibits more frequent purchasing behavior and a higher affinity for mobile payment methods.
- Average Payment Methods Used: Mexican online shoppers use an average of 2.6 payment methods per transaction, with digital cards being the most frequently used, followed by bank transfers via SPEI.
- Usage of Other Payment Methods: Digital wallets, QR codes, and buy-now-pay-later (BNPL) schemes still have lower usage rates and more sporadic behaviors.
Reasons for the Dominance of Digital Cards and Transfers
The prevalence of digital cards and transfers can be attributed to their functional advantages:
- High Conversion Rates for Digital Cards: Users who try digital cards tend to use them repeatedly due to their ease, speed, and widespread merchant acceptance.
- Stability of Digital Wallets: Although digital wallets (such as PayPal, Mercado Pago, or Clip) maintain stable adoption rates, their usage frequency is lower. QR payments and flexible financing schemes remain niche areas.
The expansion of digital banking and the speed of the SPEI system have also contributed to the popularity of electronic transfers, which are perceived as a secure and commission-free channel between institutions.
User Experience: The Most Attractive Aspect
The average user satisfaction with payment methods is 4.2 out of 5, although users report recurring friction related to navigation issues, unclear terms for deferred payments, and technical failures disrupting the process. These experiences directly impact online sales conversion rates and consumer trust in financial institutions.
- Importance of User Experience: Eight out of ten shoppers consider good interface design the most important factor when choosing a financial institution, while nine out of ten prioritize trust.
- Competitive Incentives: Offering benefits and rewards has become a competitive element. The most valued incentives are free shipping, interest-free months, cashback, discounts, coupons, and extended product warranties for higher-value items.
Shopping Patterns and Opportunities for Financial Institutions
The average user employs their financial products for three distinct purchase types: daily expenses, subscriptions, and special purchases. This stable relationship with payment platforms offers opportunities for more personalized loyalty strategies based on each user’s timing and spending capacity.
Competition is no longer solely about the number of users or transaction volume but focuses on providing seamless, secure, and value-added payment experiences. Digital cards and SPEI transfers appear to be the preferred methods for Mexicans to make online purchases.
