Market Research Report
Payments Landscape in Mexico: Opportunities and Risks to 2021
|Published by||GlobalData||Product code||570419|
|Published||Content info||56 Pages
|Payments Landscape in Mexico: Opportunities and Risks to 2021|
|Published: October 17, 2017||Content info: 56 Pages||
Cash remains the preferred form of consumer payments, especially among the rural population, primarily due to limited knowledge of payment cards or limited access to banking infrastructure. Cash is primarily used for making small-value payments at retailers, and for the payment of utility bills, taxes, and transport fares. A significant proportion of the population is engaged in informal activities, including farmers, street vendors, domestic servants, and self-employed workers. The payment card market is growing strongly but not explosively, and the current trends make a major shift in the near future unlikely. Various charges on cards and bank accounts have also reduced the appeal of payment cards for most Mexican consumers.
Mexico joined the UN's "Better Than Cash Alliance" in June 2016. The move came after the government introduced a national policy on financial inclusion to promote the use of electronic payments across the country, and reducing dependence on cash. With 86% of the 124.6 million population owning mobile phones, Better Than Cash Alliance aims to harness the popularity of mobile phones for digital payments.
Uptake of alternative payments is gradually increasing in Mexico, with banks launching new solutions in the market. In partnership with Mastercard, Banamex launched its digital wallet, Banamex Wallet, in February 2016. The Android-compatible mobile app can be used to make contactless m-payments, which are authorized by a four-digit PIN. Users can add all Mastercard-branded credit cards to the wallet. Earlier in June 2014, BBVA Bancomer launched its mobile wallet BBVA Wallet in Mexico. The wallet allows secure NFC payments at merchant locations that accept contactless payments. Available on phones with Android 4.4 and above, other phones can use the wallet through NFC stickers.
Banks and scheme providers in Mexico have also moved into the e-commerce space to benefit from this upward trend. In November 2015, Visa launched Visa Checkout in Mexico. This service enables shoppers to make online purchases using a smartphone, tablet, laptop, or PC without having to leave the merchant's website in order to complete the purchase. In December 2016, BBVA Bancomer acquired Openpay, one of the largest online payment gateway providers in Mexico. Openpay enables merchants to accept payments for purchases through various payment methods such as debit and credit cards and bank transfers.
The report "Payments Landscape in Mexico: Opportunities and Risks to 2021", provide top-level market analysis, information and insights into the Mexican cards and payments industry.
Moreover, this report provides the following -
Companies mentioned in this report: BBVA Bancomer, Banco Santander, BanCoppel, Citibanamex, Banorte, Nacional Financiera, HSBC, Visa, Mastercard, American Express