Mexico digital payments adoption and cash dependence, Digi Mart USA News (Mexico): Digital payments have boomed among Mexican consumers, but this progress appears insufficient to achieve the financial digitalization the country requires, as a strong attachment to cash payments persists.
According to a study titled “How Mexico Is Reinventing the Way It Pays” by Mercado Libre and Endeavor, Mexicans are projected to make 80 digital transactions per year by the end of 2026. That is roughly five times the 15 digital payments recorded in 2021.
Even so, Mexico still trails other developing markets such as Brazil and China, which record 540 and 680 digital transactions per capita, respectively. The question is why digitalization has not taken firmer hold among Mexicans.
According to the Mercado Libre and Endeavor analysis, the problem is not a lack of technology. Between 2020 and 2024, point-of-sale terminals from fintech aggregators rose by 58.6%.
Instead, the obstacle is culture, as Mexicans have not yet developed the habit of paying with digital tools.
The study found that although 76.4% of consumers say it would be easier to stop using cash, 47% still use it as their main payment method. The analysis states that Mexico’s lag is explained more by how often available technology is used than by its absence.
Cash accounts for 35% of all transactions in Mexico. That share is expected to fall to 30% by 2030, but it would still represent 18% of payments by 2050, well above China, where it is expected to be just 4% by the same date.
Informal commerce is another major factor. According to the analysis, 91.4% of surveyed consumers said cash is the predominant payment method at informal businesses, while only 8.7% said they prioritize digital payments.
The analysis attributes the limited penetration of digital payments in informal commerce to four factors: acceptance costs, tax concerns, misinformation about tax obligations, and the financial invisibility of small businesses. Connectivity problems, which are more acute outside large cities, add to these barriers.
To accelerate digitalization, the study recommends that financial sector participants build consumer trust and provide tools that make transactions easier. Economic incentives are a key proposal: 60.9% of respondents said cashback and discounts could motivate them to use digital tools, while 58.4% said eliminating commissions would help drive adoption.
The study concludes that the next stage of adoption requires addressing three dimensions simultaneously: a simpler user experience, economic incentives, and consumer trust.
