The future of digital payments in Mexico: are you ready?
Ecommerce in Mexico has experienced accelerated growth in recent years, thanks to increased digitization and changes in consumer habits. One of the key factors for the success of any ecommerce is to offer flexible, convenient and secure payment methods adapted to the needs of the market. In this article, we will explore the main innovations in payment methods that are transforming the online shopping experience in Mexico.
1. Payments with QR codes
The use of QR codes has gained popularity as a quick and easy alternative for making payments. Services such as CoDi, powered by Banco de México, allow users to make transactions without the need for physical cards, as they only need a smartphone. This solution is ideal for promoting financial inclusion, as it eliminates dependence on traditional bank accounts.
Advantages
It is a fast, secure and contactless method. Ideal for small and medium enterprises (SMEs), which have online and physical stores. It is one of the fastest growing payment methods because it facilitates payments from mobile devices, integrating physical and digital stores.
2. Offline payments for online customers
Despite the adoption of different online payment methods, the “online-to-offline” model is still essential in Mexico. This is a system in which convenience stores such as OXXO allow online orders to be paid for in cash. Cash is still the most widely used payment method in Mexico, which is why innovations such as OXXO Pay, which allow consumers to shop online and pay in cash at physical points, are important.
This democratizes access to e-commerce, especially in regions where banking penetration is limited or helps to gain confidence among users who are wary of using digital payment methods.
Why it is relevant
Although e-commerce in Mexico has gained popularity in recent years, online payments still generate some distrust among consumers. One of the solutions is to continue making cash payments, and it is also a method that extends the reach of ecommerce to unbanked users.
3. Electronic wallets and Super Apps
Another solution to the distrust of using cards for online purchases are e-wallets. E-wallets such as the classic PayPal, MercadoPago, Apple Pay or Clip, have revolutionized the way Mexicans make online payments, adding an extra level of security to digital transactions.
These platforms offer multiple advantages, such as credit or debit card linking, one-click payments and advanced security. In addition, some include rewards and loyalty programs that appeal to consumers.
Advantages of e-wallets
These digital wallets promote financial inclusion and increase accessibility for unbanked users. In addition, they are more secure because they encrypt user information to protect it from unauthorized access.
Digital wallets are widely accepted by customers because they offer additional benefits such as rewards programs, loyalty points or cash rebates, so it is a good idea to consider incorporating them into your business’ payment methods.
4. Interest-free monthly payments (MSI)
A widely used strategy in Mexico is the option of interest-free monthly payments (MSI), which facilitates the acquisition of higher-value products. Recent innovations make it possible to integrate this payment option directly into ecommerce platforms, improving the customer experience and increasing conversion rates.
Why it is important
Including monthly payments without interest (MSI) in ecommerce is a key strategy to increase sales and improve the customer shopping experience. Customers are more likely to make higher value purchases if they have the option to split the cost into small, manageable payments, so instead of spending $10,000 MXN in a single payment, customers can choose to pay $833 MXN per month for 12 months. It can also help reduce shopping cart abandonment rates by providing more convenient payments.
5. Buy now, pay later model
For a long time, the option to pay for your purchases in deferred payments was exclusive to bank credit card users; today this payment method is available to a wider audience. The “Buy now, pay later” model has arrived in Mexico with platforms such as Kueski Pay, Aplazo or Mercado Crédito itself. This method allows users to make immediate purchases and split the payment into installments, without the need for a credit card. It is an ideal option for young consumers looking for financial flexibility.
For your business to offer this method to customers you must become a partner of the platform, once you meet the requirements your customers can buy and pay in fortnights, while your business receives the total cost of purchases in advance.
Advantages
Services such as Aplazo and Kueski Pay have modernized this model, offering purchases with financing without the need for credit cards. Increases sales by facilitating larger purchases and lowering the upfront cost barrier.
6. Cryptocurrencies
Interest in cryptocurrencies, such as Bitcoin, has grown significantly. Some online stores already accept cryptocurrency payments, attracting younger consumers. Although its adoption is still incipient, it represents an opportunity to differentiate in the market.
Why it matters
Despite being a promising change, it still faces mass adoption challenges due to volatility and lack of awareness among the general public. However, cryptocurrencies represent fast and unmediated transactions, you can consider this payment method in your ecommerce if you are targeting young and technologically advanced consumers.
7. Artificial intelligence and payment personalization
Artificial intelligence (AI) is revolutionizing e-commerce and payment methods are no exception. AI can make them faster, safer and more personalized. AI systems analyze user behavior in real time, which can help detect suspicious transactions and fraud attempts before they are completed. AI can also analyze the customer’s purchase history, spending habits and preferences to offer tailored payment options, improving the customer’s payment experience.
Advantages of using AI in the checkout process
Using AI in the payment process helps to improve the user experience, as it can identify weak points (such as long forms or loading times) and suggest improvements. In addition, it can add layers of security such as authentication through facial recognition, fingerprints or even voice patterns, giving greater security in transactions.
Innovation in payment methods not only improves the user experience, but also drives sales and customer loyalty. With more secure, accessible and diversified options, businesses have the opportunity to reach more customers and improve the shopping experience. For ecommerce in Mexico, adopting these solutions is key to staying competitive in a constantly evolving market. Analyzing the needs of the target audience and staying on top of technology trends can make the difference between success and stagnation. Tell us, which payment methods do you prefer?