- Payop

The payment landscape in Mexico is changing fast. From marketplaces to online gaming platforms, more people are choosing digital payments, but cash still plays a huge role. With a large unbanked population and rising fintech innovation, the country presents a unique mix of challenges and exciting opportunities.

This article will explore how payments work in Mexico and how your business can maximise its potential in the region.

Overview of Mexico’s payment market

Mexico is on a path to becoming one of Latin America’s digital payment leaders. The local digital payment market is expected to grow from $1.7 billion in 2024 to over $8.6 billion by 2035, with a solid annual growth rate of nearly 16%.

These numbers are based on the fact that about 51% of adults still don’t have a bank account. That’s over 66 million people who rely on cash and alternative methods to buy, sell, and transfer money. With rapid smartphone and internet adoption and the boom in e-commerce, digital payments are taking over the space traditionally reserved for credit cards.

All of this leads to the rapid development of new technologies in terms of payments and their security.

Trends shaping the Mexican payment landscape

Mexico’s payment habits are shifting fast and not just because of technology. A mix of government support, changing consumer behaviour, and fintech innovation fuels the move toward a more digital and inclusive economy. Let’s break down the key trends shaping this transformation:

Government support for digitisation

Mexico’s central bank and government have been actively pushing for financial inclusion. One major step was the launch of CoDi (Cobro Digital) – a QR-code payment system linked to SPEI that lets people send and receive money instantly from their bank app. It benefits small businesses and vendors who want to accept digital payments without paying extra fees.

These initiatives are designed to bring more people into the financial system, especially those who’ve relied on cash their whole lives.

E-commerce boom

Online shopping in Mexico has exploded in recent years, experiencing over 20% annual growth in online sales. More people are buying from their phones, and more businesses are going online, from major retailers to small Instagram shops.

This boom drives demand for flexible, fast, and secure payment options. Consumers want to pay in the best way that suits them, whether through digital wallets, monthly instalments, or cash at the corner store.

Mobile-first consumer behaviour

Mexico has a young, tech-savvy population that skips straight to mobile. Many consumers don’t own a desktop computer, but almost everyone has a smartphone. This mobile-first reality is changing how payments are made, with QR codes, wallets, and instant transfers becoming everyday tools.

Even traditional banks are adapting by improving their apps and rolling out digital tools to meet user expectations.

Learn about trends in mobile payments.

Financial inclusion

With around half the population still unbanked, alternative payment methods like cash vouchers, BNPL, and digital wallets play a key role in bridging the gap. These tools allow people to participate in the digital economy without a bank account or credit history.

So the payments evolution in Mexico isn’t just about progress, it’s also about inclusivity.

Key payment methods in Mexico

Mexico’s payment ecosystem blends old habits with new technologies. While many consumers still rely on cash, digital methods are rapidly gaining ground, especially in urban areas and among younger users. To succeed in this diverse market, businesses must understand the full range of popular payment methods and how each caters to different population segments.

Cash payments

Yes, cash is still king. Even for online shopping!

Stores like OXXO and 7-Eleven allow customers to shop online and then pay in person using a payment reference code. It’s incredibly popular among people who prefer not to share banking details or simply don’t have an account.

For merchants, offering OXXO Pay or similar options can dramatically increase checkout success in Mexico.

Digital wallets

Digital wallets are booming, especially those built for local users. These tools let people store money, make transfers, and pay online – all from their phone.

Top regional players include:

Mercado Pago – Born out of the Mercado Libre e-commerce platform, this wallet is now a standalone giant. It supports QR payments, P2P transfers, and even consumer loans.
Clip – Known for its portable card readers, Clip has launched its wallet services for businesses and individuals.
Billpocket – Another Mexican innovator offering mobile POS solutions and wallet-style services.

These wallets are bridging the gap for millions of unbanked or underbanked users.

Bank transfers

SPEI (Sistema de Pagos Electrónicos Interbancarios) is Mexico’s backbone for real-time bank transfers. Powered by the Bank of Mexico, it allows individuals and businesses to move money in seconds.

It is especially popular for bill payments, high-value transfers, and increasingly, e-commerce. It offers instant confirmation, operates 24/7 – even on holidays – and reduces the risks associated with chargebacks, making it a reliable option for merchants and consumers seeking fast and secure transactions.

Buy Now, Pay Later (BNPL)

BNPL is catching on fast, especially with younger generations. It’s helping users who don’t have credit cards split their payments into smaller parts.

Key local BNPL options include:

Kueski Pay – A homegrown Mexican service that approves short-term instalment plans instantly, no credit card required.
Aplazo – This startup lets consumers split the purchase into five payments made every two weeks, interest-free, and is quickly becoming a checkout favourite.

Learn how to overcome payment challenges in Latin America.

Conclusion

Expanding into Mexico’s diverse payment market doesn’t have to be complicated. With Payop, you can offer your customers the payment methods they trust – whether that’s bank transfers, mobile wallets, or QR-code payments. Our platform connects you to Mexico’s most widely used methods through a single integration, helping you boost conversions, reach unbanked audiences, and stay compliant with local practices.

If you want to grow your business in Mexico, Payop gives you the local edge you need.