A fully researched survey of the cards, payments and consumer banking market in Mexico, with insightful commentary backed by deep data.
A new regulatory framework around fintechs is intended to expand the reach of electronic payments and chip away further at the unbanked population, which remains high for the region, despite the authorities' ongoing efforts. New entrants remain well-advised to partner with an incumbent bank and/or the larger fintechs. Still, the pressure from the authorities for change, together with an e-commerce boom and deep smartphone penetration, make market reshaping and opportunity seem inevitable.
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market
Appendix IV: Mobile payments
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquiring and processing
Appendix IX: Online acquiring
Demographics and Economy
There are an estimated 36 million households in the country, with an average monthly income of $1,012. Most low-income families operate outside the formal banking system because the relevant services and payments infrastructure are unavailable in the areas where this segment live or transact.
During 2020, bank transfers and direct debit represented about 18% of total consumer payment value, of which consumer bank transfers accounted for 81%.
Payment Cards Market
Payment cards in Mexico have grown significantly to reach, as of December 2020, 185 million cards in issue, with 14.9% being credit cards. These cards are issued by 107 institutions, of which 34 are banks.
In June 2020, Citibanamex included in Transfer the option to open a digital account to deliver services during the pandemic. Under this service, new customers may open a Transfer digital account after downloading the app, entering basic data, uploading a national identity document photo and selecting a PIN.
With 24% growth in outstandings between 2014 and 2020, credit cards have been one of the most dynamic areas of consumer credit in Mexico; however, outstandings decreased by 9.6% during 2020 due to Covid-19 impacts.
Mexico is positioned as one of the most appealing emerging markets for credit cards growth, given its size, growing middle class, robust financial system, consumer preference for using cash and the relative maturity of the electronic payments network. Debit cards as a payment instrument have been growing in popularity, but still, 72% of the total billed volume were ATM withdrawals in 2020.
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 2020, 86% of credit cards in issue and 88% of credit card outstandings.
Acquiring and Processing
As of 2020, there were 19 bank acquirers, two non-bank acquirers and more than 35 aggregators participating in the market. E-Global (Servicios Electrónicos Globales) is the largest processor and is owned by BBVA and Citibanamex. Prosa (Promocion y Operacion), a large card processor and e-payments switch service provider, is the main competitor to E-Global in Mexico.
E-commerce has grown in importance in Mexico over the last several years. This has been driven by the increased availability of the internet, available to 73% of the population, or nearly 94 million people, as of the end of 2020.
Regulatory and Markets Information
To unlock the benefits commensurate with an appropriately modernised banking and payment system, over the years, the authorities have been reducing transaction costs, issuing new banking licences and encouraging the introduction of innovative products and financial instruments, as well as working to improve product and service transparency.
Asociación Mexicana de Internet
Banca Preferente Banorte
Banco de Comercio
Banco de Mexico
Banco Nacional de Mexico
Bank of America
Blue Label Mexico
Blue Label Telecoms
Buro de Credito
Circulo de Credito
Comision Nacional Bancaria y de Valores
Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros
Farmacias del Ahorro
FIFA World Cup
Grupo Financiero Citibanamex-Accival
Instituto Nacional de Estadística y Geografía
International Telecommunication Union
Los 40 Principales
Promocion y Operacion
Rayados de Monterrey
Santander Central Hispano
Santander Merchant Platform Solutions
Servicios Electrónicos Globales
Sociedades Financieras de Objeto Multiple
Universidad Nacional Autónoma de Mexico
Up Si Vale
Verisk reports deliver invaluable market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in Latin American countries. A dedicated team of analysts and researchers use both primary and secondary source data and conduct in-depth interviews with senior Latin American industry executives and experts.
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