Mexico Digital Payments Law Cash Acceptance Phase-Out, Digi Mart USA News (Mexico City): President Claudia Sheinbaum published a new law to encourage digital payments in Mexico on Wednesday, starting a countdown for the government to define the sectors that will gradually stop accepting cash.
The Digital Economy Law for Digital and Electronic Payments was enacted in the evening edition of the Diario Oficial de la Federación. It provides that credit and debit cards, bank transfers and the QR-code payment platform CoDi will be the only accepted forms of payment in strategic sectors and relevant activities.
The Secretariat of Finance will determine those sectors within 15 business days, counted from the law’s entry into force on November 5, according to the legislation. Although the sectors have not been officially announced, Sheinbaum has previously said she intends to digitize payments at gas stations and toll booths.
Once the relevant activities are announced, the competent authorities of each sector will have 15 business days to set the conditions, requirements, obligations and operating rules for accepting digital payments, along with specific mechanisms and deadlines for the gradual transition from cash. Cash will still be accepted in contingency situations.
Recently, the Mexican Bankers Association said the government intends to set “reasonable deadlines” depending on the sector so the transition can occur without disruptions. The government aims to use the regulation to increase adoption of digital payment methods in an economy dominated by cash.
According to figures from the National Institute of Statistics and Geography (INEGI), 85% of the population more frequently pays for purchases under MXN$500 with bills and coins, and 73% prefers cash for transactions above that amount. Banamex specialists said in a recent analysis that the law’s effectiveness will depend on closing the gap between formal access to financial instruments and their everyday use, particularly among micro-businesses, informal workers and regions with lower connectivity, as well as addressing implementation risks.
The law also proposes that digital payment methods be accepted for government procedures and services, and that the digital CURP be accepted as official identification for contracting financial services.
