Global Compliance

Mexico Payment Landscape: Navigating a Booming Digital Economy

Waffo Team

How hot is Mexico for global expansion?

  • Investment Surge: According to the Dallas Fed, Chinese direct investment in Mexico is skyrocketing, making China the fastest-growing source of external investment.

  • Economic Rank: In 2023, Mexico rose to become the 12th largest economy globally, surpassing South Korea, Australia, and Spain.

  • E-commerce Growth: Mexico ranks 1st in Latin America for e-commerce market size and 5th globally for growth rate.

  • Payment Habits: While cash (like OXXO) remains king, digital payments via SPEI and digital wallets are rapidly gaining ground.

Map of Mexico highlighting digital infrastructure stats: 100 million+ internet users and 78.6% penetration rate.
Map of Mexico highlighting digital infrastructure stats: 100 million+ internet users and 78.6% penetration rate.

01. Overview: The Latin American Giant

Economic Vitality

Located south of the US, Mexico is a political and economic powerhouse in Latin America.

Graphic showing Mexico's business environment ranking (60/190) and global competitiveness score.
Graphic showing Mexico's business environment ranking (60/190) and global competitiveness score.

  • GDP: Reached $1.8 trillion in 2023, with a growth rate of 3.2%.

  • Trade: A leader in free trade, Mexico has agreements with over 50 countries. Total trade reached $1.19 trillion in 2023.

Chart displaying Mexico's 2023 total foreign trade volume of $1.19 trillion with export and import breakdowns.
Chart displaying Mexico's 2023 total foreign trade volume of $1.19 trillion with export and import breakdowns.

  • Key Sectors: Manufacturing, petrochemicals, electricity, mining, and metallurgy are highly developed.

Infographic showing Mexico's 2023 GDP of $1.8 Trillion, population of 67.9 million, and 3.2% growth rate.
Infographic showing Mexico's 2023 GDP of $1.8 Trillion, population of 67.9 million, and 3.2% growth rate.

02. The Digital Economy & E-commerce

Mexico's government is aggressively promoting the digital economy, focusing on e-commerce, FinTech, and online education.

  • Market Leader: Mexico leads Latin America in e-commerce market size.

  • Digital Media: Mexicans are highly active digital users, spending more time on social media and music streaming than the global average.

  • Service Sector: The tertiary sector contributes ~65% of GDP, driving digital transformation.

Mexico digital competitiveness stats: Ranking No.3 in Latin America for Innovation Index.
Mexico digital competitiveness stats: Ranking No.3 in Latin America for Innovation Index.

03. The Payment Battlefield: Cash vs. Digital

Despite a high unbanked population, digital adoption is accelerating.

  • Top E-commerce Categories: Food Delivery (40%), Fashion (30%), Supermarkets (28%).

  • Top Payment Methods: Online Banking, Mobile Payments, and Cash.

1. Cash Payments (OXXO)

Cash is deeply ingrained in Mexican culture.

  • OXXO: The most popular cash payment method for online purchases.

  • How it works: Shoppers generate a barcode online and pay cash at any OXXO convenience store.

  • Reach: Essential for reaching the unbanked population.

2. Bank Transfers (SPEI)

SPEI (Sistema de Pagos Electrónicos Interbancarios) is the national electronic payment system.

  • Growth: Processed 3.63 billion transactions in 2023, up 39.1% YoY.

  • Features: Real-time, 24/7 transfers between banks.

  • Dominance: Accounts for 91% of B2B bank transfers in digital commerce.

3. Digital Wallets (Mercado Pago)

Digital wallets are booming due to high smartphone penetration.

  • Mercado Pago: The "Alipay of Latin America."

  • Users: Over 218 million active users (2023).

  • Ecosystem: Integrated with Mercado Libre, offering QR payments, credit lines, and investment options.

4. Credit & Debit Cards

While credit card access is stricter, debit cards are common. Visa, Mastercard, and Amex dominate. Installment payments ("Meses sin intereses") are highly preferred by consumers.

Conclusion: Seizing the Opportunity

Mexico's solid economic performance and rapid digital adoption make it a prime target for expansion. However, navigating the mix of cash and digital payments is complex.

Waffo empowers your expansion

by providing a comprehensive payment solution that covers SPEI, OXXO, local cards, and digital wallets, ensuring you can serve every Mexican customer seamlessly.