Mexico is the second largest economy in Latin America, accounting for over 12% of the region’s e-commerce sales. Of the 127M Mexican citizens, 18M shop online. The country’s e-commerce market is growing at a rate of 20% a year and is expected to reach $52 billion by 2021. With domestic cards and cash-based methods dominating consumer preferences, a cross-border model will not get you far here.
50% Credit Cards: A majority of credit cards in Mexico are unable to make international purchases, but with WL Online Payment Acceptance you can process domestic card payments for Visa, MasterCard, American Express, Discover and Diners Club.
23% Debit Cards: Unlike the rest of Latin America, Mexico has more debit cards than credit cards; 134 million debit cards versus 30 million credit cards. Most debit cards are not allowed to process online transactions or foreign currencies, however, which explains why only 23% of e-commerce purchases are made with debit cards.
19% Cash: Cash purchases initiated online are paid either through a convenience store or when a physical product is delivered. Similar to Boleto Bancário in Brazil, cash payments in Mexico work by customers printing out a barcode document and paying with cash at a convenient store.
Oxxo, Mexico’s largest convenience store chain, is the leader in cash-based payments with its mobile-compatible OxxoPay solution.
3% Bank Transfers: In 2014, Banco de Mexico and other commercial banks developed an electronic payment system known as Sistema de Pagos Electrónicos Interbancarios (SPEI), which is used to send and receive money transfers.
5% Other Methods:
An estimated 40-50% of e-commerce purchases in Mexico are made using an installment plan. Banks BBVA Bancomer, Banamex and American Express, in partnership with merchants, are the leaders in offering these plans. Installments are usually reserved for large ticket purchases, such as technology, home furnishings and travel.
In order to tap the full potential of the Mexican e-commerce market, it is vital to offer local payment methods as a complement to international credit cards.
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Contact us today and together we will tailor your payment strategy to meet your business requirements, growth plans and sales goals.