What is Oxxo?
Oxxo is a Mexican online payment method that allows e-commerce customers to generate payment vouchers and pay them in cash at Oxxo branches across Mexico. Oxxo is the most popular alternative payment method in the country.
Similar to other voucher-based payment solutions, Oxxo allows shoppers to order items online, select the Oxxo payment option at checkout, and receive a voucher. Next, online customers can pay for the purchases in cash at one of over 18,000 Oxxo stores across the country. Many Mexicans don’t have bank accounts or credit cards, so Oxxo has become an especially popular payment method for e-commerce orders.
How does Oxxo work?
Oxxo is a chain of convenience stores with thousands of locations across Latin America and represents nearly 20% of online transactions in Mexico. Customers can pay bills and online purchases in-store with cash by receiving a voucher that includes a reference number for the transaction, then bringing it to an Oxxo store to make a cash payment.
Merchants receive the payment confirmation by the next business day, along with the settled funds.
Here’s how the process works step by step:
- The customer selects Oxxo as the payment method at checkout.
- The system generates a voucher containing a barcode for the customer to either print or display on their phone.
- The customer pays for their purchase at any Oxxo location using cash.
- The merchant receives payment confirmation in one business day.
Why do merchants and consumers use Oxxo?
Consumers can use Oxxo to pay bills and make online purchases without being required to have a bank account or credit card. Transactions are paid in cash, so there is no risk of chargebacks. With 18,000 Oxxo convenience stores across Mexico and 71 million unbanked customers, Oxxo provides access to a market where 21% of online transactions are paid for using cash.
With a population of nearly 130 million and a growing e-commerce market, Mexico is a top destination for businesses interested in expanding to Latin America. Oxxo provides online merchants with a way to reach Mexico’s significant unbanked population, by offering the ability to pay for e-commerce orders using cash as a payment method. Consumers in Mexico are used to paying with vouchers for their purchases. This habit translates into the world of online shopping, leading customers to look for e-commerces that offer voucher-based payment methods.
Another benefit of implementing Oxxo is that payments have a low risk of fraud because the customer must provide cash payment in person at an Oxxo convenience store. Oxxo payments can’t be refunded, and the amount for a single payment must be at least 10.00 MXN and no more than 10,000.00 MXN.
How can merchants start accepting Oxxo?
Oxxo is a single-use payment method that requires customers to provide a voucher and make a cash payment at an Oxxo convenience store. Merchants can integrate this payment method easily by partnering with a payment gateway that offers Oxxo as one of the available payment methods.
PayU’s global payment platform supports access to Oxxo as well as many other cash-based alternative payment methods across Latin America – helping merchants localize the checkout experience anywhere in the world through a single global integration.