The Cryptocurrency Revolution in Latin America Payments
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Online shopping has become part of daily life for Mexicans. Between 38% and 47% of Mexican online consumers buy products or services weekly ,and between 29% and 35% do so monthly, according to Asociación Mexicana de Venta Online. In fact, Mexico is among the Latin American countries with the highest penetration of e-commerce, and globally it is ahead of countries like France, Germany, and Italy.
In terms of payment methods with a high potential for electronic commerce in Mexico, Andreas Farge—senior analyst at Americas Market Intelligence (AMI) and an expert on digital payments—highlights two online payment systems.
On the one hand we have social commerce, with a high level of penetration in Mexico (albeit difficult to measure), which “is mobilized as a result of payment links offered by some gateways, providing online collection without involving payment terminals or websites,” explains Farge. He further notes that WhatsApp is a significant sales mechanism in Mexico for social commerce, given that it is one of the most widely used social apps. In fact, WhatsApp’s penetration is 94.3% among Mexican internet users, according to data compiled by Hootsuite and We Are Social 2022.
The other is a payment method that, while it is only just developing in Mexico, could see ample support in the near future. It is the Buy Now Pay Later (BNPL) model, which, our analyst says, consists in “interest-free installments or monthly payments without involving credit cards,” a method driven by the fintech boom in the country. Preliminary data from AMI show that BNPL could end up representing 24% of the total volume of payments in Mexico in 2028, although the final data will be published in the next edition of our E-Commerce Datapack. Ultimately, Farge says, “other payment methods like the cash voucher are still the most significant ones in Mexico [compared to BNPL], for now.”
To find out more about the current e-commerce panorama in Mexico, we decided to put together the following infographic summary that focuses on the payment methods most used by Mexicans when buying products and services online.
Going beyond These Data Points
Contact us if you are interested in a more in-depth market study on e-commerce payments in Mexico or other topics relating to payments there or elsewhere in Latin America. Our personalized studies will not only help your company’s strategic decision making, but also identify new opportunities in the market.