Mexico City proposal to phase out cash payments at hotels, Digi Mart USA News (Mexico City): The government of Mexico City is analyzing a proposal to incorporate the hotel sector into an initiative that seeks to promote exclusively electronic payments in certain commercial activities. The proposal is part of a draft Digital Economy Law and aims to strengthen fiscal transparency, facilitate access to financing and promote the digitalization of tourism.
Mexico City is studying a proposal to gradually eliminate cash payments at hotel establishments as part of a strategy to expand the use of electronic means in commercial transactions. The initiative falls within the draft Digital Economy Law, which includes measures to digitize payments in activities such as gas stations and toll roads.
Representatives of the Mixed Tourism Promotion Fund of Mexico City proposed including hotels among the first sectors covered by the new regulatory framework, noting that many establishments already have technological infrastructure to process electronic payments. According to the information released, the proposal received preliminary acceptance from representatives of the hotel sector, although it remains under analysis.
One of the main objectives of the initiative is to improve the traceability of commercial operations and facilitate control over collection of the Lodging Tax. Authorities believe greater digitalization of transactions would reduce underreporting of operations and strengthen oversight mechanisms.
Another pillar of the proposal is to facilitate access to bank financing for small and medium-sized tourism businesses. In this regard, the Mixed Fund seeks to increase from 16% to 25% the proportion of local tourism SMEs with access to credit lines from commercial and development banks.
Formalization and electronic registration of transactions could help these companies have more complete financial information to support their credit applications.
The proposal also references consumer behavior during the 2026 FIFA World Cup, which included Mexico City among its host cities. According to figures cited by the initiative’s promoters, the event generated an economic impact of approximately 66,000 million Mexican pesos in the capital.
During that period, the use of foreign bank cards at electronic terminals reportedly rose 61%, with increases of up to 200% in certain residential areas and small businesses located outside the main tourist circuits. These results are presented as an argument in favor of expanding the acceptance of electronic payment methods in the tourism sector.
The project is under joint analysis with the Secretariat of Administration and Finance of Mexico City. The Mixed Tourism Promotion Fund acknowledged that any eventual implementation would require informational campaigns aimed especially at small establishments and independent businesses.
Among the main concerns identified are the tax implications of digitizing operations and the changes that would result from no longer accepting cash.
For now, no effective date has been announced, and there is no confirmed general obligation for Mexico City hotels to stop accepting cash payments. Should the proposal advance, travel agencies and tour operators will need to pay attention to the payment conditions set by accommodations, especially for bookings that involve payments made directly at the destination.
