Mexico Country Report
- Published Date: December 2019
A comprehensive overview of the cards, payments and consumer banking market in Mexico.
What you will learn from this Mexico cards market report:
- What moves are being made by market leaders and key rivals
- How the nature of acquiring has been changing
- The preferences shaping credit/debit cardholding patterns
- The role of alliances and regulations in reshaping Mexico payments
- Why Mexico mobile money's destiny differs here from elsewhere
MEXICO CARDS & PAYMENTS REPORT | KEY FACTS
- Despite strong growth in electronic payments, cash remains the overwhelming choice for consumers when making payments in Mexico.
- Over the 2013-19 period, financial inclusion has increased from 34 per cent to about 41 per cent, boosting Mexico's appeal for the retail banking and payments industries.
- The level of credit card ownership remained at an average of 30 cards per 100 adults between 2013 and 2019.
- Debit cards have maintained their dominance with 83 per cent of all Mexico payment cards as of June 2019. Debit card purchase volume will account for over 27 per cent of total debit card billed volume in 2019, up from 18 per cent in 2013.
- Net interest revenue remains the greatest single contributor to total Mexico credit cards revenue. However, this should change in 2021 as the rollover rate decreases.
- Visa continues to dominate the credit card networks market, both in terms of cards in issue and billed volume; Mastercard is gaining ground.
- Citibanamex, followed by BBVA, is the leading institution in terms of both credit cards in issue and outstandings.
- Traditionally, merchant acquiring has been carried out by the banks directly. However, in recent years, banks have developed merchant acquiring alliances to gain economies of scale and increase coverage.
- In March 2019, a Mexican regulatory framework for fintechs was legally established, intended to improve both financial inclusion and competitive conditions.
Mexico Payments Research | Report Contents
Key Points
Demographics and the economy
Payments environment
Cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
- Demographic and economic indicators
- Ownership of key consumer devices
- Internet usage by population
Appendix II: Payments environment
- Access points
- Account penetration
- Consumer payment trends
- B2C e-commerce payment methods
Appendix III: Cards market
- Total cards payment metrics
- Contactless cards metrics
- Credit card data numbers
- Total credit cards metrics
- Credit cards profitability indicators
- Debit cards numbers
- Debit cards metrics
Appendix IV: Mobile payments
- Mobile P2P payments
Appendix V: Profit pool
- Profit pool
Appendix VI: Card networks
- Networks' credit card market shares
- Networks' credit card numbers
- Networks' credit card billed volume
- Networks' number of credit card transactions
- Networks' average credit card transaction value
- Credit card interchange fees by network
- Networks' debit card market shares
- Networks' debit card numbers
- Networks' debit card billed volume
- Networks' number of debit card transactions
- Networks' average debit card transaction value
- Debit card interchange fees by network
Appendix VII: Key retail banks and issuers
- Key credit card issuers market shares by credit card numbers
- Key issuers market shares in credit card outstandings
- Key debit card issuers market shares by debit card numbers
Appendix VIII: Acquiring and processing
- Merchant acquirer credit card market share
- Credit card merchant service charges
- Merchant acquirer debit card market share
- Debit card merchant service charges
- Credit card issuer/issuing processor relationships
- Credit card acquirer/acquiring processor relationships
- Credit card issuing processor market shares by card numbers
- Credit card acquiring processor market shares by the number of POS transactions
Appendix IX: Online acquiring
- Online merchant acquirer market share
Mexico Country Report | Selected Extracts
Demographics and Economy:
Mexico has a relatively young population, with 26% under 15 years of age and only 7% older than 65 in 2019. There are an estimated 33.6 million households in Mexico, with an average monthly income of $841.
Payments Environment:
Despite the progress made in recent years, Mexican consumers remain underserved in terms of financial services such as credit cards, pension plans and insurance products in comparison with citizens of other OECD countries.
Cards market:
Payment cards in Mexico have grown significantly to reach about 182 million cards in issue as of December 2018, of which 15.3% are credit cards. Between 2013 and 2018, the number of debit cards in issue grew by 22%.
Mobile Payments:
With the number of smartphones doubling the number of individuals with a bank account, Banco de Mexico and Mexico s Banking Association (ABM), made another strong move towards migrating cash transactions.
Profit Pool:
During 2018, about 52% of the total credit card portfolio revolved at an average APR of 25.1%. In 2013, rollover rates reached 56%; however, the introduction to the market of interest-free instalments meant cardholders started using their credit cards as a payment instrument.
Card Networks:
Visa leads this credit cards market in terms of both cards in issue and billed volume, with 53 and 54% respectively. The remainder of the market is shared between Mastercard, American Express and Carnet, a local card network.
Key Retail Banks and Issuers:
The six largest issuers in terms of the number of credit cards in Mexico are Citibanamex, BBVA, BanCoppel, Santander, Inbursa and Banorte. Together they accounted for, at the end of 2018, 88% of both credit cards in issue and of credit card outstandings.
Acquiring and Processing:
Large domestic acquirers such as Citibanamex, Santander and Scotiabank have developed partnerships with acquiring processing companies EVO, Elavon and Fiserv respectively.
Online Acquiring:
Online acquired billed volume reached a total of $12.4 billion in 2019, which was an increase of 28% compared with 2018. The average transaction value in 2019 stood at $28, compared with $34 the previous year.
Regulatory and Markets Information:
The country's openness to foreign investment, the size of its economy and the drive for financial inclusion combine to make Mexico an attractive market for international retail banks, payment service providers and fintechs alike.
Mexico Payments Report | Entities Referenced
2CheckOut
7-Eleven
ABM
Aeroméxico
Ahorro Drugstores
Amazon
Amazon Recargable
American Express
Amex
AMIPCI
Banamex
Banca Afirme
Banca Mifel
Banco Azteca
Banco de México
Banco Mexicano
Banco Nacional de Mexico
Banco Paga Todo
Banco Santander Mexico
Banco Serfin
Banco Walmart
BanCoppel
Banjercito
Bank of America
Bankaool
Banorte
Bansefi
Banwire
Banxico
BBVA
BBVA Bancomer
BBVA SMS
Benavides
Bershka
Best Buy
Blue Label Mexico
Blue Label Telecoms
Bodega Aurrera
Broxel
C&A
Cabify
Carnet
Chedraui
Circulo de Credito
Citi
Citibanamex
Citigroup
Clip
CNBV
CoDi
Comercial Mexicana
ComproPago
Condusef
Conekta
CONEVAL
Coppel
Costco
Delta
Delta Airlines
Dinero Send
Diners Club
Discover
Edenred
Efectivale
E-Global
El Palacio de Hierro
Elavon
Elektra
EVO
Farmacias del Ahorro
Farmacias Guadalajara
Fiesta hotels
FIMPE
Financial Inclusion Council
Finanzas Practicas
First Data
Fiserv
Flap
FleetCor
Getnet
Grupo Bimbo
Grupo Chedraui
Grupo Elektra
Grupo Financiero Banamex-Accival
Grupo Invermexico
HEB
Hipotecaria Nacional
Home Depot
HSBC
Iberia Airlines
IFC
IFPE
Inbursa
Inditex Group
INEGI
Instituciones de Banca de Desarrollo
Instituciones de Banca Multiple
Interacciones Bank
International Telecommunication Union
InterPOS
Invex
ITU
Ixe
iZettle
JCB
Lefties
Liverpool
Los 40 Principales
Massimo Dutti
Mastercard
Mercado Libre
Mercado Pago
Metro
Metrobus
Microsoft
NAFTA
Office Depot
One Card
OpenPay
Oxxo
Oysho
Pacific Alliance
PayIt
PayPal
PayU
Piticó
Prosa
Pull & Bear
Rappi
Rayados de Monterrey
Red Qiubo
Sam's Club
Sanborns
Santander
Santander Central Hispano
Scotiabank
Sears
Senicreb
Si Vale
Simplify Commerce
Sodexo
Sofomes
Sofomes ENR
Sofomes ER
Soriana
SPEI
SPEI Móvil
Stradivarius
Stripe
Suburbia
Swap
Telcel
Telecomm
Telefonica
Teleton
Televisa Radio
Tiendas Coppel (2006)
ToditoPay
ToditoPay
Tuyyo
Uber
United
Universidad Nacional Autónoma de Mexico
Up Si Vale
USMCA
Uterqüe
Visa
Visor
Volaris
W Radio
Walmart
Walmart de Mexico
World Bank
Zara Home
Zara
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