Accepting payments in Mexico means participating in a highly dynamic financial ecosystem where customers prefer to use cash—and digital networks are rapidly expanding. In 2023, Mexico became the United States’ top trade partner, surpassing China. Cross-border transactions are growing, as is the demand for smooth payment integrations in Mexico.

Mexico’s payment system is heavily affected by socioeconomic conditions, trade relationships, and global influences. The country presents a dynamic and illuminating study in global payments, and companies must balance cash and digital solutions, prioritise security, and foster digital payment trust.

Below, we’ll explain what businesses that want to enter Mexico’s payment scene should know.

What's in this article?

• Payments landscape in Mexico
  
• Popular payment methods in Mexico
  
• Operational requirements and challenges
  
• Success factors for businesses
  
• How Stripe Payments can help
  

Payments landscape in Mexico

Mexico’s official currency is the Mexican peso (MXN). Doing business in this country requires balancing deeply rooted cash traditions with rapid financial technology (fintech) innovation.

Cash usage

A significant portion of the population still relies on cash because of a large informal economy and limited digital banking access in rural regions. In 2024, 51% of adults in the country did not have a bank account.

In 2024, cash dominated transaction volume, making up approximately 44% of all consumer payments. This strong preference for cash comes from several factors, such as the sizable unbanked population, a large informal economy, and concerns about online security.

According to a 2021 survey by the INEGI, the National Institute of Statistics and Geography, 90.1% of the population between ages 18 and 70 uses cash for purchases of $500 MXN or less. For purchases of $501 MXN or more, 78.7% of the population ages 18 to 70 uses cash and 12.3% uses a debit card.

Digital payments growth

Despite cash’s dominance in Mexico, the use of digital payment methods continues to expand, with the total transaction value projected to have a compound annual growth rate of almost 10% between 2024 and 2028.

The adoption of digital payments was initiated by the arrival of third-party services that allowed businesses to accept online payments in Mexico in 2014. Contactless payments in Mexico increased 150% in 2024, speeding up checkouts and giving consumers more flexibility.

While cash is still a common payment method in Mexico, digital payments have seen a steady increase every year since 2017. OXXO, a payment method that gives customers the option to pay for online purchases in cash at a physical OXXO shop, combines digital and nondigital methods.

Fintech presence

As of 2024, the Mexican fintech environment included 773 startup fintech companies, an 18.9% increase from 2022. These include Konfio (business lending), Kueski (consumer lending/BNPL solutions) and Clip (payments), companies that have gained traction by offering innovative financial payment solutions that cater to the underserved segments of the population.

More than 217 fintech companies from more than 22 countries operate in Mexico.

In recent years, the Bank of Mexico has launched two platforms to reduce its dependence on cash. Launched in 2023, Dimo (“Dinero Móvil,” or “Mobile Money” in English) allows users with a bank account to make payments through instant bank transfers through the Sistema de Pagos Electrónicos Interbancarios (SPEI)—an electronic payment system operated by Mexico’s central bank—by using the payer’s and recipient’s phone numbers. Cobro Digital (CoDi), launched in 2019, is a state-backed digital payment system that facilitates real-time electronic payments through QR codes and near-field communication (NFC) technology.

Popular payment methods in Mexico

In Mexico, residents and visitors rely on several different payment methods for day-to-day transactions and larger purchases. Here’s a closer look at the primary methods.

B2C payment methods

• Cash
  
• Credit cards
  
• Buy now, pay later (BNPL, or “meses sin intereses”)
  
• Bank transfers (using SPEI)
  
• Debit card payments
  

B2B payment methods

• Bank transfers
  
• Credit cards
  
• Direct debits (linked to a credit or debit card)
  

Operational requirements and challenges

Businesses that want to enter the Mexican payment market should consider the following factors:

Taxes

The value-added tax (VAT) in Mexico, known as “IVA” (Impuesto al Valor Agregado), affects consumers and businesses. As of 2024, the standard IVA rate in Mexico is 16% for most of the country, with a reduced rate of 8% in regions near the US border. Businesses are responsible for collecting and remitting these funds to the Mexican tax authority. Noncompliance or irregularities in IVA collection and remittance can have legal implications.

Chargebacks and disputes

As in other regions, businesses in Mexico face challenges around chargebacks and dispute resolutions. The influence of local consumer protection laws and regulations makes the environment more complex.

International payments

Here’s what you should know about international payments in Mexico:

• Currency conversion: The Bank of Mexico, which mandates transparency around exchange rates and fees, oversees currency conversion in the country. Tourists and business travellers in Mexico typically convert their home currency into Mexican pesos in places such as airports or currency exchange businesses, but digital platforms like XE Currency and Wise are quickly gaining ground.
  মায়ের
  Remittance flows: With a large population of Mexicans living abroad, remittances play an important role in Mexico’s economy. Mexico is one of the world’s top recipients of remittances, which has led to the development of specialised payment channels and services to facilitate these transactions.

• Cross-border payments: Mexico’s large expatriate population and strong trade ties with countries such as the US result in a substantial number of cross-border transactions. These transactions come with challenges related to currency conversion, differing payment preferences, and divergent regulatory requirements.

Success factors for businesses

Mexico’s payment environment contains both opportunities and challenges. Understanding these challenges is pivotal for businesses looking to navigate and succeed in the Mexican payment market.

• Focus on cash payments: Despite consistent growth in the number of Mexicans who use digital payment methods, the market share may be expanding more slowly than in other markets. For businesses, continuing to accept cash payments alongside mobile payments can help bridge the gap between populations that are more reliant on cash and those comfortable with digital payments.

• Use effective payments infrastructure: Ensure your payment service provider delivers a high authorisation rate as credit card usage rises in Mexico. High authorisation rates can prevent lost sales in the moment, as well as prevent the loss of future sales from customers who have their payments declined.

• Prioritise cybersecurity and privacy: In 2018, the Mexican banking sector experienced a cyberattack that led to a loss of approximately 300 million pesos across five financial institutions. Such incidents emphasise the need for robust cybersecurity measures, including advanced fraud detection and prevention systems, as well as consumer data protection measures.

• Support local payment preferences beyond cash: Similar to Brazil’s Boleto Bancário or Argentina’s Rapipago, Mexico’s OXXO is a cash payment method that supports the country’s significant unbanked population. By allowing online shoppers to pay in cash at physical locations, OXXO bridges the digital divide and opens ecommerce opportunities.

• Embrace fintech innovations: Mexico’s burgeoning fintech scene is democratising access to financial services. This growth is similar to that of Southeast Asia or Africa, where fintech startups are bridging gaps in traditional banking structures and offering alternative payment solutions.

• Implement a transparent refund process: Mexico doesn’t have a nationwide rule on return policies, but offering a clear and prompt refund procedure can enhance the customer experience and foster loyalty and trust.

• Provide excellent customer support: While Spanish is the country’s predominant language, providing bilingual support—especially in areas with a high concentration of tourists or expatriates—can enhance the payment experience for a broader audience.

• Engage with local traditions: Tuning into local events or holidays—such as “El Buen Fin” (Mexico’s equivalent to Black Friday)—as an opportunity for promotions and discounts can boost customer engagement, increase transaction volume, and build customers’ comfort with digital payment solutions.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments or get started today.