In the past decade, Mexico’s payments industry has seen a remarkable evolution. The shift towards digital payment solutions has been fuelled by technological innovation, governmental efforts, and the widespread adoption of smartphones. From real-time payments systems like sistema de pagos electrónicos interbancarios (aka SPEI) to mobile wallets and blockchain, the country’s payment ecosystem is rapidly moving towards greater efficiency, inclusion, and modernisation.
Currently, it’s estimated that Mexico has over five million point-of-sale (POS) terminals, with 70% being mobile devices, developed alongside aggregators and payment facilitators. In 2024, the payments industry in Mexico will have an impressive USD 676 billion in volume, with USD 618 billion accounted for by POS transactions, 62% of which digital – a figure expected to grow by four percentage points by 2027.
However, despite initiatives aimed at reducing cash dependency, a large segment of Mexico’s nearly 130 million citizens remain underserved by the banking system. In a country where 51% of the population is unbanked and cash remains the preferred payment method for 82% of citizens, cash continues to be a driving force behind innovations in digital payment solutions.
As the market matures, it is evident that the future of payments in Mexico is digital, with ecommerce and cross-border transactions leading the charge. As the second-largest ecommerce market in Latin America, Mexico presents a diverse payment landscape that blends both traditional and modern methods, reflecting the country’s cultural richness.
Several key factors are transforming the way money moves in Mexico, reflected in these ongoing trends:
Real-time payment systems: platforms like SPEI and the newly launched DiMo are transforming payments in Mexico, making them faster and cheaper. DiMo allows account-to-account (A2A) transfers using phone numbers and has gained strong support from major banks and businesses, which hope it will reduce payment processing costs. The system's growth could significantly boost online transactions through real-time payments in the coming years.
Fintech sector and innovation: Mexico’s fintech ecosystem is thriving, boasting nearly 1,000 companies, including 217 foreign entities from over 22 nations. Over the past five years, the domestic sector has demonstrated impressive growth, with a notable compound annual growth rate (CAGR) of 18.4% in the number of startups.
Cash as an economic necessity: despite the rise of digital payment methods, cash remains crucial in Mexico. World Bank indicated that 51% of Mexico’s population is unbanked, but according to the country’s 2023 Financial Inclusion National Survey, the percentage of adults with at least one financial product – whether savings accounts, loans, insurance or pension accounts – remained stagnant at 67.8% in 2021, slightly lower than the 68.4% recorded in 2015. As a result, major companies like Amazon and Uber still offer cash-based payment options, and methods like Cash on Delivery (COD) are popular, allowing consumers to pay in cash at stores like OXXO after making online purchases. While cash remains dominant, its use is slowly declining, as digital alternatives gain ground.
Digital wallets, cards, and ecommerce: ecommerce in Mexico is expanding rapidly, with increasing adoption of digital wallets and cards. Cards currently represent almost half of POS payments, and digital wallets are growing quickly, projected to reach 17% of transactions by 2027. This surge is helping reduce cash dependence, as more consumers embrace online shopping and digital payment options.
Mexico’s payments ecosystem is built on a robust technological infrastructure that has significantly evolved over the years. Some of the important technologies shaping this transformation include:
SPEI: established by Banco de México (Banxico), Mexico’s central bank, SPEI is a real-time payment system that plays a crucial role in the country’s payment ecosystem, as it enables instant transfers between bank accounts. Processing over three million transactions per day, it has become the foundation of domestic payments. Currently, six out of ten Mexicans use SPEI. In fact, in 2023 alone, SPEI processed more than 3.8 billion transactions worth almost USD 25.7 billion.
CoDi (Cobro Digital): introduced in 2019, CoDi enables QR code-based payments via the SPEI platform. It was designed to facilitate small transactions and is actively promoted by the government to drive financial inclusion by making digital payments accessible to micro-businesses and individuals. Despite the advantages offered by CoDi, Banxico has enabled a new platform called Dinero Móvil (see below).
DiMo (Dinero Móvil): DiMo is the latest addition to Mexico's real-time payment infrastructure. Launched in March 2023, it simplifies person-to-person (P2P) and business-to-business (B2B) transfers by linking bank accounts using phone numbers. DiMo offers an improved user experience compared to CoDi – which relies on QR codes – and has garnered strong support from major banks and financial service providers. Merchants are optimistic that DiMo will reduce payment acceptance costs. With projections of a 19% annual growth rate between 2023 and 2027, DiMo is expected to increase A2A’s share of online transactions from 6% to 8%, provided consumer adoption of the platform continues to grow.
Cash-based payment: in Mexico, cash remains a crucial bridge between digital and traditional economies. OXXO, a leading convenience store chain with over 20,000 locations nationwide, is central in facilitating cash-based payments. Accounting for 50% of all voucher and cash-based transactions in Mexico's digital commerce, OXXO allows consumers to pay for online purchases, utility bills, and other services in cash. As the country's primary correspondent banking network, OXXO also provides services like bank deposits and cash withdrawals, making it a vital access point for financial services in a largely cash-driven economy.
Blockchain: although still in its early stages, blockchain technology is gaining attention in Mexico for cross-border payments and remittances. Companies like Bitso lead the charge, leveraging blockchain to lower costs and increase transparency in financial transactions. In Mexico, which ranks as the second-largest remittance corridor globally, blockchain-based solutions such as Felix Pago and PaySend are rapidly gaining traction. These platforms are revolutionising cross-border payments, offering faster, more affordable, and more secure options than traditional financial rails.
DiMo is seen as a pivotal advancement for digital payments in Mexico. Unlike its predecessors, DiMo is phone-based and offers a more user-friendly experience, which could be key to its adoption. Although participation is not mandatory for financial institutions, major banks like BBVA and Santander are already embracing the platform, actively promoting it to attract new customers. Banks also have a financial incentive to participate, since they can charge for DiMo transactions.
In its first year, BBVA anticipated onboarding 5 million users, surpassing the total active users of CoDi, and processing over USD 560 million in transactions – a figure six times higher than CoDi’s forecasted volume.
By May 2024, Banxico reported that DiMo had more than 7 million registered accounts. DiMo's long-term success will depend on three key factors: the number of participating entities, the quality of the user experience, and keeping P2P transaction fees low or non-existent.
Several companies dominate Mexico’s payment industry, each with distinct offerings that cater to a rapidly diversifying market. These players leverage their technology and scale to deliver seamless payment solutions across different sectors.
These companies are key players in Mexico’s continued shift towards digital transactions, addressing both consumer needs and the growing demands of businesses.
As digital payment options expand, Mexico's payment landscape is becoming more diverse, particularly at the POS and in ecommerce transactions.
For POS payments, debit and credit cards still dominate in physical stores, making up 48% of transactions (24% each). Cash, however, leads with 38%. Mobile wallets like Mercado Pago, Clip, and others are gaining traction, with digital wallets currently accounting for 11% of POS payments, projected to rise to 17% by 2027.
When discussing ecommerce payments, online shopping sees digital wallets such as Mercado Pago and PayPal become prominent. Credit cards remain a key option, but newer methods like Buy Now, Pay Later (BNPL) are increasingly popular, particularly among younger consumers.
Mexico stands out as the second-largest ecommerce market in Latin America, trailing only behind Brazil. According to PCMI proprietary data and analysis1, Mexico's ecommerce market is characterised by a high penetration of mobile commerce, with 79% of transactions occurring on mobile devices. Domestic ecommerce sites dominate, contributing to 78% of total sales, but there is significant potential for cross-border ecommerce, with projections indicating a 45% growth in 2024. Ecommerce contributes about 4% to Mexico’s GDP, underscoring its importance in the national economy.
In 2023, the ecommerce sector in Mexico achieved a remarkable volume of USD 74 billion, reflecting its deep integration into everyday life, with 70% of adults participating in online shopping. This sector is set to expand significantly, with a projected growth of 33% from 2023 to 2026, reaching an estimated USD 176.8 billion. This growth is fuelled by increasing internet access and a young, tech-savvy population.
Based on 2023 data, the distribution of payment methods for online transactions in Mexico is as follows:
Internationally-enabled credit cards: 38%
Debit cards: 25%
Cash vouchers: 10%
Others*(including gift cards, pay-on-delivery, and other miscellaneous payment methods): 9%
Digital wallets: 8%
Domestic-only credit cards: 3%
Bank transfers: 3%
BNPL: 3%
Preferred devices
Mexico leads Latin America in mobile commerce, with 79% of online purchases made via mobile devices, compared to just 21% via desktops.
The top-selling ecommerce products in Mexico (based on the share of consumers that are used to buy these products online) are: clothing and footwear, electronics, computers and technology, beauty and health/pharmacy, and home and furniture.
When we look at online shopper habits, average spend per online purchase sits at USD 89 (conversion to USD from MXN 1,774), while annual online spending per person amounts to USD 580. Additionally, 25% of Mexican online consumers make purchases monthly, with regular online buyers primarily aged 25-44 years.
The physical retail sector and the ecommerce landscape in Mexico are dominated by a few key players that shape the online shopping experience. The top-ranking marketplaces2 are: Amazon, Mercado Libre, Walmart, Coppel, and Liverpool.
The online retailers ranking3, sees the following dominate: Bodega Aurrera, Coppel, OXXO, Walmart, Soriana, and Liverpool.
Mexico stands out as a leading force in Latin America’s cross-border payments sector, reflecting its significant role in the region’s ecommerce and remittance markets. In fact, cross-border transactions account for 22% of Mexico’s ecommerce activity, with an impressive projected annual growth rate of 44% by 2026.
The country is also a global leader in remittances, receiving USD 66.2 billion in 2023, making it the second-largest recipient worldwide. The majority of these funds (96%) come from the US. Despite various global challenges, such as the pandemic and inflation, this influx continues to rise.
Key players actively expand their services to capture a share of this robust market, including Western Union, MoneyGram, Bitso, Mercado Pago, Walmart, Wise, and Revolut.
B2B payments: the growth of cross-border B2B payments reflects Mexico’s integration into global supply chains. Blockchain technology is increasingly being explored to enhance transparency and reduce costs in these transactions.
Remittances: Mexico is the second largest recipient of remittances in the Americas and the Caribbean, accounting for 43% of remittances as a country, totalling USD 66.2 billion in 2023.
Mexico’s payments landscape is at a tipping point. The country is rapidly embracing digital transformation, driven by technological innovation, government support, and an increasingly tech-literate population. While challenges remain – particularly in achieving full financial inclusion and addressing cross-border payment inefficiencies – the trajectory is clear. The adoption of real-time payment systems like SPEI and CoDi, along with the rise of mobile wallets and blockchain solutions, marks the beginning of a new era in Mexican payments.
As digital adoption continues to surge and regulatory frameworks mature, the future of payments in Mexico looks promising. With the right infrastructure and continued innovation, Mexico is well-positioned to become a leader in digital payments across Latin America.
1PCMI, 2023. E-Commerce Data Library
2By net sales through the digital channel in 2022. ecommerceDB, 2023. Data from 2022
3Kantar: Retailing in Mexico 2023. Euromonitor 2023.
Dr Ignacio Carballo is the Director of Alternative Finance at PCMI. He leads consulting engagements for the world’s most innovative institutions, helping them build a more inclusive and responsible financial system while maintaining a competitive edge in the market. Prior to joining PCMI, Ignacio spearheaded several research projects for private, public, and multilateral organisations. He is a professor at various universities in Latin America and serves as Director of the Center for Alternative Finance at the Catholic University of Argentina.
PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to global corporations, having executed over 500 client engagements in the payments industry since 1991. PCMI performs custom strategic engagements, including market sizing, opportunity benchmarking, market entry, customer insights, and more, covering over 50 global markets in the Americas, EMEA, and APAC regions.
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