1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
The Cards and Payments Industry in Mexico: Emerging trends and opportunities to 2020

The Cards and Payments Industry in Mexico: Emerging trends and opportunities to 2020

  • June 2017
  • 58 pages
  • ID: 3289877
In this report:
Mexico's GDP growth declined from ##.##% in 2012 to ##.##% in 2013, owing to a decrease in exports to the US and a slowdown in the domestic construction industry.
Real household consumption increased during the review period, from $##.##m (MXN##.##bn) in 2012 to $##m (MXN##.##bn) in 2016, and is expected to increase further over the forecast period, reaching $##.##m (MXN##.##bn) in 2020, resulting in greater use of products such as personal loans and credit cards.

Summary

Table of Contents

Search Inside

The Cards and Payments Industry in Mexico (MX): Emerging trends and possibilities to 2020

Brief

Cash remains the preferred form of consumer payments in Mexico (MX); especially among the rural population, primarily due to limited knowledge of payment cards or limited access to banking infrastructure. Cash is primarily used for making small-value payments at retailers, and for the payment of utility bills, taxes, and transport fares. A meaningful proportion of the population is engaged in informal activities, including farmers, street vendors, domestic servants, and self-employed workers.

Debit cards have grown in prominence on account of the introduction of electronic payroll services, an increase in the banked population, and the government's distribution of social welfare funds through cards. Mexico's government is focusing on financial inclusion by undertaking three social benefits programs: Oportunidades, Programa para Adultos Mayores, and Procampo, disbursing benefits through bank accounts and cards. These programs are supervised by the Ministry of Social Development. Banks have also supported the financial inclusion programs, resulting in an increase in the banked population from 31.50 percent in 2012 to 46.80 percent in 2016, which in turn has supported a rise in debit card penetration.

Mexican e-commerce market posted a review-period CAGR of 40.80 percent, increasing from US$4.1bn (MXN85.7bn) in 2012 to US$16.2bn (MXN336.8bn) in 2016, with the country anticipated to reach US$35.8bn (MXN741.4bn) by 2020. Payment cards remain the most popular payment method among online shoppers, accounting for 60.80 percent of global e-commerce transaction value in 2016. Additionally to payment cards, alternative payments including PayPal, MercadoPago, DineroMail, and SafetyPay are all used extensively for online shopping. The availability of digital wallet services, and the security and convenience they offer, has made them popular among consumers. Mobile wallets, digital wallets, and carrier billing collectively accounted for 10.70 percent of global e-commerce transaction value in 2016, up from 5.10 percent in 2012.

Despite being small in size, the Mexican credit card market has recorded strong review-period growth in terms of the number of cards in circulation, as well as transaction value and quantity, supported by high consumer spending. However, the industry is likely to be affected by Donald Trump's victory in the US presidential election. Consequently, banks are cutting credit card exposure to counter a plausible rise in consumer defaults and the risks of an economic shock should the additional US government restrict trade and business with Mexico (MX). Banks are therefore reducing credit card spending limits and raising consumer lending standards. Banks' profits would suffer if the US government scraps the North American Free Trade Agreement or discourages US companies from moving to Mexico.

The market research "The Cards and Payments Industry in Mexico (MX): Emerging trends and alternatives to 2020" offers top-level market analysis, info and business insights into the Mexican cards and payments industry.

In unique, this business report offers the following analysis -

- Current and forecast values for each market in the Mexican cards and payments industry, including debit, credit and charge cards.

- Detailed insights into payment instruments including credit transfers, cheques, cash, direct debits, and payment cards. It also, includes an overview of the country's main alternative payment instruments.

- E-commerce market analysis and payment methods.

- Analysis of several market drivers and regulations governing the Mexican cards and payments industry.

- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

Firms mentioned in this industry report: BBVA Bancomer, BanCoppel, Citibanamex, Banorte, Banco Santander, Inbursa, Visa, Mastercard, Carnet, American Express.

Overview

- To combat fraudulent payment activities in Mexico (MX), banks and scheme providers are taking a number of measures, with one example being Mastercard's introduction of the Identity Check Mobile solution in November 2016. The solution allows card holders to verify online payment by scanning their fingerprint or taking a selfie. Unlike existing identity verification methods - which take shoppers away from a merchant's website or mobile app and often require them to remember and enter a password - Mastercard Identity Check Mobile verifies the user via technologies including biometrics and one-time passwords. Earlier in January 2015, Oberthur Technologies partnered with PROSA, a provider of payment processing services, to launch OT Motion Code technology. With Motion Code, the card's CVV code is replaced with a mini-screen on which the CVV code changes automatically at regular intervals, making it impossible for fraudsters to misuse.

- The uptake of alternative payments is gradually growing in Mexico (MX), with banks and payment solutions providers launching products and services in the sector. In partnership with Mastercard, Banamex launched its digital wallet, Banamex Wallet, in February 2016. The Android-compatible mobile app can be used to make contactless m-payments, which are authorized by a four-digit PIN. Users can add all Mastercard-branded credit cards to the wallet. Earlier in June 2014, BBVA Bancomer launched its mobile wallet BBVA Wallet in Mexico (MX). The wallet allows secure NFC payments at merchant locations that accept contactless payments. Available on phones with Android 4.4 and above, other phones can use it through NFC stickers.

- To further enhance financial inclusion, Mexico (MX) joined the UN-based Better Than Cash Alliance in June 2016. The move comes after the government introduced a national policy on financial inclusion to promote the use of electronic payments across the country and reduce the dependence on cash. With 86.0 percent of the 124.6 million population owning mobile phones, Better Than Cash Alliance aims to harness the popularity of mobile phones for digital payments. Earlier in February 2016, PROSA partnered with digital solutions provider Gemalto to offer m-payment services to its partner banks, which include 95.0 percent of credit, debit, and prepaid card issuers in the country. Gemalto's Trusted Service Hub allows banks to offer their own mobile wallets using host card emulation technology, while PROSA is responsible for mobile wallet development, card holder identification and verification, card digitization, and security.

Great reasons to purchase

- Make tactical business decisions, using top-level historic and forecast market data, related to the Mexican cards and payments industry and each market within it.

- Comprehend the top market trends and growth opportunities in the Mexican cards and payments industry.

- Assess the ambitious dynamics in the Mexican cards and payments industry.

- Gain insights into marketing strategies used for different card types in Mexico (MX).

- Gain insights into main regulations governing the Mexican cards and payments industry.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Nicolas helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Debit Cards in Ukraine

Debit Cards: In-depth Industry Report in Ukraine

  • $ 992
  • Industry report
  • November 2017
  • by Euromonitor International

Debit cards remained the most dominant and most used type of payment card in Ukraine in 2017. A debit card is relatively cheap to exploit, and consumers usually prefer its pay-now function to avoid hidden ...

Debit Cards in Singapore

Debit Cards: In-depth Industry Report in Singapore

  • $ 992
  • Industry report
  • October 2017
  • by Euromonitor International

Debit transactions volume and value recorded strong growth on the back of renewed efforts by the government to push for a cashless society, as technological advances and changing consumer preferences made ...

Debit Cards in Germany

Debit Cards: In-depth Industry Report in Germany

  • $ 992
  • Industry report
  • October 2017
  • by Euromonitor International

Debit cards are by far the most popular type of payment card in Germany. However, cash remains by far the favourite payment type for Germans, with cash payments dwarfing those made via debit cards. This ...


Download Unlimited Documents from Trusted Public Sources

Payments Industry in Europe

  • February 2018
    13 pages
  • Payments  

    Payments  

  • Europe  

View report >

Payments Industry in Europe

  • February 2018
    13 pages
  • Payments  

    Payments  

  • Europe  

View report >

The future of the Processed Food Industry in India

  • February 2018
    11 pages
  • Processed Food  

    Mustard Oil  

    Edible Oil  

  • India  

View report >

Payments Markets 22 days ago


Related Market Segments :

Debit Card

Payments

ref:plp2017

Reportlinker.com © Copyright 2018. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on