Market Trends of Mexico Payments Industry
Card Payments Online Sale Segment is Expected to Hold Significant Market Share
- In online sales, card payments are one of the prominent payment methods used in the country. Card payments can be made with credit, debit, or charge cards. Furthermore, the growing digitalization in the country is boosting card payments. During the COVID-19 pandemic, the Mexican e-commerce industry grew due to various circumstances, most notably the government's encouragement to shop online and stay home for protection. Many people from the country learned how to start shopping online for groceries and other daily necessities after the movement control order (MCO) was implemented.
- In addition, the government analyzes how growing collaborations in the country will boost card payments online. As the demand for card payments is increasing in the country, the players in the market are making efforts through strategic collaborations to sustain competition. This, in turn, impacts the market’s growth positively.
- Moreover, one more long-run trend that the COVID-19 pandemic strengthened was an upsurge in the share of expenditure on online retail purchases. The percentage of retail sales accompanied online increased suddenly during pandemic-induced lockdowns and remained more significant than ever before the pandemic.
- In October 2023, Entersekt, one of the market players in customer and digital transaction authentication solutions for financial institutions, announced that high-technology financial platform Plata (Plata Card) had chosen Entersekt to be the 3-D Secure payment authentication partner for their recently released Plata credit card. The 3-D Secure can score the amount of card-not-present fraud, helping build trust in online transactions.
- Fast internet speed plays a pivotal role in driving card payments in the online sale of the Mexican payment market by enhancing transaction efficiency, enabling real-time authorization, reducing page load times, ensuring security, supporting richer content and features, and facilitating convenient mobile shopping experiences. According to Speedtest, in August 2023, Mexico's median mobile internet download speed stood at 25.82 Mbps, while the median fixed broadband download speed stood at 61.37 Mbps. Moreover, over 96 million Mexicans were signified as internet users by the end of 2023.
Understand The Key Trends Shaping This Market
Download PDF
Hospitality End-user Industry Segment is Expected to Hold Significant Market Share
- The digital payments trend has surged in recent years to limit contact and cater to the speed and convenience consumers demand in the country's hospitality sector. Digital payments offer the utmost convenience for guests checking in at hotels. Instead of checking out at the front desk and physically handing in their credit card, guests expect a seamless experience. Moreover, people are becoming reliant on their mobile devices by paying for their services online.
- Further, the country's travel and tourism sector is being driven by an increase in the use of technology to improve guest encounters and encourage more direct online bookings. In the current fast-paced and competitive travel industry, it is essential to be at the forefront of technology and digital experiences, driving partnerships between hospitality sector companies and market vendors to enhance payment options and customer experience.
- According to the Secretary of Tourism in Mexico, in the first half of 2023, Mexico City's hotels hosted around 2 million foreign visitors, accounting for nearly two-thirds of the total in 2022.
- Seamless, integrated payments are becoming the new normal for the hospitality sector in Mexico, driving the growth of the Mexican payment market. However, in small hotel chains, cash and online digital payment are expected to be the primary payment modes in the country's hospitality sector.
- Overall, the market has significant potential to attract tourists by incorporating quick payment methods across several hospitality payment venues. Moreover, the growing collaboration among market vendors and hospitality sector companies to enhance the traveler experience through innovative payment capabilities and rising usage of digital payments, coupled with the emergence of new payment methods such as BNPL in the hospitality sector, is expected to drive the growth of the market studied over the forecast period.
- Furthermore, according to INEGI, Veracruz stood in Mexico with the most significant number of hotels as of mid-2023, with 1,784 operating establishments. Jalisco followed it with around 1,400 lodging establishments of this type. Meanwhile, 838 hotels operated in Mexico City that year.
