A Deep Dive into the Payment Tendencies in the Mexican Market (Part 2)
While the sheer volume and age of potential shoppers makes México an attractive market, there is another component to the viability of eCommerce: México is mobile. A recent study performed by the Asociación de Internet.mx, shows that México is one of 22 countries leading the trend toward mobile commerce, with young adults making 88 percent of smartphone purchases. The country has one of the largest mobile markets in Latin America, with one-third of all residents using smartphones.
At 18 percent, México boasts the highest percentage of internet traffic coming from mobile phones in Latin America (source: GlobalData Research). Teens and young adults are the main internet users, with more than half of the country’s internet users and mobile phone users belonging to this group.
• Cash-based methods: 24%
• Bank transfer: 22%
• Visa: 19%
• MasterCard: 17%
• PayPal: 10%
• American Express: 8%
In México, 19 percent of consumers shop online at least once a month, and are considered highly educated with the highest reported levels of income. It is estimated that around 24 percent of consumers in México shop online between one and eight times per year and 21.1 million consumers were expected to become online shoppers by 2018. By the end of 2019, eCommerce will have an expected sustained growth of 25 percent in the country.
The numbers of online consumers in México are only expected to grow as access to the internet becomes more prevalent and the telecom industry supports mobile internet uptake and digital access. This represents a growing opportunity for cross-border sales, as more consumers access the internet, especially for digitally savvy international companies.
Convenience stores: other alternatives to receive payments
Convenience stores like OXXO, 7-Eleven, Super-K, Extra and others represent an alternative to non-banking customers to receive their payments; OXXO is the cash payment leader in México.
Customers pay for their items online and print a voucher, which they then take to one of the 13,000 OXXO locations in the country to pay.
Market tendencies for the coming future in México
The global digital payments market is projected to register a CAGR of 14.1 percent, during the forecast period, 2018-2023.
Digital payments is the biggest FinTech segment in Mexico due to a high online shopping penetration. Seamless integration of payment solutions is also a major driving force in the digital payments market.
Consumers, as well as businesses, are interested in faster, safer and more convenient payment methods. Find out how ACI is helping drive faster payments in Mexico here.
Is your organization a digital trailblazer or a laggard? Find out how to encourage a culture of innovation by completing the Ovum Culture of Innovation Index. Click here to get started.
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