Introduction to Digital Payments in Mexico
Mexico has witnessed a rapid acceleration in the adoption of digital payment methods over recent years, as outlined in the tenth edition of the Global Payments Report (GPR) by global payments firm Worldpay.
This shift is driven by new entrants addressing market demands, strengthened payment infrastructure, and increased digitalization.
Growth in Digital Wallet Usage
One significant change is the growth in digital wallet usage. Their share in e-commerce transaction value has quadrupled, rising from 6% in 2014 to 28% in 2024. Projections estimate digital wallet usage will reach 37% of online transactions by 2030.
Mexico’s Advantage in Digital Payments
Juan Pablo D’Antiochia, Worldpay’s General Manager, noted that Mexico’s slightly delayed entry into digital payments allowed it to bypass intermediate stages and adopt more modern solutions directly.
Despite the rise of digital wallets, credit cards remain the most popular online payment method in Mexico, accounting for 34% of total value in 2024. Debit cards represent 20% of online spending and 24% of in-store purchases during the same period.
Decline of Cash Usage
Cash usage has started to decline, though it remains dominant in specific situations. In 2024, 85% of Mexico’s population opted for cash payments in purchases equal to or less than 500 pesos, a decrease of 5.1 percentage points from 2021.
According to Worldpay’s report, cash transactions at point-of-sale dropped from 76% in 2014 to 35% in 2024. Projections indicate a further reduction to 31% by 2030, reflecting a cultural shift towards digital payments in Mexico.
Key Players Drive Digital Payment Adoption
D’Antiochia emphasized that new entrants in the Mexican financial sector, particularly Latin American and Mexican fintechs, have been crucial in accelerating digital payment adoption.
These fintechs didn’t invent new technologies; instead, they made existing solutions accessible to previously underserved consumer segments due to complexities or misalignment with traditional banking products.
Key Questions and Answers
- What is driving the rapid adoption of digital payments in Mexico? New entrants addressing market demands, strengthened payment infrastructure, and increased digitalization are key factors.
- What is the current most popular online payment method in Mexico? Despite growing digital wallet usage, credit cards remain the top choice with 34% of total online transaction value in 2024.
- How has cash usage changed in Mexico? Cash usage has declined, though it remains dominant for smaller purchases. Projections show a further decrease to 31% by 2030.
- What role have fintechs played in Mexico’s digital payment adoption? Fintechs have made existing digital payment solutions more accessible to previously underserved consumer segments, driving adoption.
