What is Oxxo, how does it work, and how can merchants integrate this payment method into their e-commerce store?
Many individuals in Mexico and other Latin American countries lack access to conventional bank accounts or credit cards. On the surface, this could prove challenging for e-commerce. How can businesses carry out online transactions when customers lack digital payment options?
Enter Oxxo and other cash-based payment methods. Among the most popular alternative payment methods across Latin America, cash systems enable anyone to shop or pay bills online, by receiving a voucher that can then be paid in person at participating in-store locations.
Numerous cash-based payment methods are provided throughout Latin America via banks (Banco de Bogotà and Davivienda are good examples in Colombia), as well as retail chains (Farmacias del Ahorro in Mexico), and various specialized payment methods (Rapipago and Pago Fácil in Argentina).
Another popular cash-based alternative payment method amongst Mexican consumers is Oxxo, which is administered through a network of popular convenient stores.
Keep reading to learn more about Oxxo, how it works, and how merchants can start offering Oxxo as a payment method in their e-commerce store.
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.
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:
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.
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.
Oxxo is a Mexican convenience store that allows merchants to provide financially inclusive online payment options to the country’s large unbanked population. With Oxxo, customers can check out online and then pay for the order using cash at any of Oxxo’s more than 18,000 convenience store locations. Customers in Mexico are used to paying for purchases with vouchers, which translates into the world of online shopping, leading them to look for e-commerces that offer voucher payment methods.
Oxxo stores provide a cash-based system for online payments, enabling users without bank accounts or credit cards to still make purchases or pay bills online. There is no risk of chargebacks, as consumers pay in cash. With 18,000 Oxxo convenience stores across Mexico and an unbanked population of more than 71 million, Oxxo helps merchants reach more customers a market where 21% of online transactions are paid for using cash.
Oxxo is used in Mexico, a country seeing significant e-commerce growth but where many consumers lack access to bank accounts or credit cards. That is why Oxxo is such a popular cash-based online payment method in Mexico.
Oxxo is a single-use payment method that allows customers to make cash payments at convenience stores. Merchants can easily integrate this payment method by partnering with a payment gateway that supports Oxxo as an available payment method.
Oxxo payments have a low risk of fraud because the customer must pay in person at an Oxxo convenience store. Oxxo payments can’t be refunded, and the amount for a single payment has minimum and maximum limits.
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