Mexico digital payments law, Digi Mart USA News (Mexico): The Federal Government published the Digital Economy Law for Digital and Electronic Payments in the Official Gazette of the Federation (DOF) on Wednesday, according to a publisher report. The new law takes effect Thursday.
The decree, issued by President Claudia Sheinbaum, aims to restrict the use of cash in certain economic activities. It establishes a legal framework to expand the use of transfers, cards, QR codes and other digital and electronic tools in commercial operations and public services.
The law empowers the Secretariat of Finance and Public Credit (SHCP) to determine strategic sectors and relevant activities in which digital payments may become the only permitted means of payment. Hacienda has 15 business days to establish these sectors, without prejudice to later expanding that determination.
Once the tax authorities make that determination, they will have another 15 business days to issue the corresponding administrative provisions and operating mechanisms.
If a contingency prevents the acceptance of digital and electronic payment methods, the law will allow payment in cash or by check. The report gives the example of failures in internet services.
The Bank of Mexico (Banxico) will play a significant role in implementing the new model. The legislation provides for the development of tools to facilitate transfers, standardize the user experience of financial applications and expand operations using QR codes.
