MEXICO

Increasingly positive business prospects in Mexico

Processing locally enables you to reap ever-increasing benefits in the high growth Mexican market.

123 Million
12 World Rank 

39% Bank account 
25% Credit Card 

15 Billion E-commerce Market 
23 Million Internet Shoppers 

51% Penetration 
35% M-commerce Share 

Mexico is the second most populated country in Latin America and ranks second in terms of e-commerce. In 2016, the market grew by 27% and is expected to maintain a growth of double digits to reach a value of $30 billion USD by 2020. Moreover, smartphone penetration spans across more than 50% of the population, playing an integral role in online purchasing activities.

Interestingly, Mexico’s payment split is significantly different from most markets in Latin America, and it is highly beneficial to process payments locally. Despite the increasing digitization, the Mexican economy largely runs on cash. Low credit card penetration and security concerns over online payments lead to 46% of all transactions to be paid in cash, making it essential for cross-border merchants to consider it a vital component of their payment solutions. Cash payment points like OXXO, 7-eleven and pharmacies are found on nearly every corner. Even banks like Bancomer provide cash payment options.

Debit cards are an equally common online payment method as cash. Nearly all debit cards in Mexico are enabled for online purchases and have a CVV, a factor that is uncommon for the rest of Latin America. Only local acquirers are able to process local debit cards, though.
Although credit card penetration accounts for nearly 50% of the entire market Mexican consumers are wary of using their credit cards to make online purchases due to the higher than average fraud rates.

With only 48% of the payment methods enabled for cross-border transactions, a very sparse credit card penetration and an abundance of alternative payments available, it is crucial for merchants to process payments locally.

PayU has been operating in Mexico for over 11 years and fully understands the challenges and opportunities in this dynamic market. What might be considered a small shadow over the amazing potential in Mexico is the high levels of online fraud that the market experiences, creating a lot of concern for merchants and consumers alike. Working with local experts who recognize the characteristics of the Mexican market, like PayU, can help merchants establish successful business and guarantee high approval rates, while minimizing fraud. PayU allows merchants to process local payments, including interest free instalments and alternative payments, to optimize merchant success in Mexico.

Payment Methods Available in Mexico With PayU

Credit and Debit Cards

Cash Payments

Bank Transfers