The ballad of Mexico’s payments landscape is one of modernization, reducing cash in circulation and bringing more people into the country’s formal economy. The government is looking to the banks and fintechs to support its aims to go cashless and decrease the number of unbanked citizens. Nevertheless, Mexico is still the second-biggest ecommerce market in Latin America, and one forecast to grow a further 30% by 2024.
When shopping online, Mexicans are known to pay using cash-based payment methods and online banking, while paying in installments is also common. OXXO is one such cash-based method; it works by generating a code that allows shoppers to pay at their local convenience store.
Card usage is on the rise for online and in-store payments, but it’s important to note that many domestic cards in Mexico are not enabled for cross-border purchases. This can result in lower authorization rates. Adyen has local acquiring capabilities in Mexico, so you can process transactions with credit and debit cards issued by any bank and increase authorization rates.