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Mexico Country Report

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  • Published Date: May 2021

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.

What you will learn from this Mexico cards market report:

Why bank transfers have grown in importance.
Which regulations are proving decisive.
How there is a new opportunity in prepaid.
Why issuing calls for new creativity.
How profits will fare as the pandemic eases.

MEXICO CARDS & PAYMENTS REPORT | KEY FACTS

  • Mexico is one of the most attractive markets for the growth of retail banking and payments in Latin America. It boasts a large population, many of whom are underserved when it comes to financial services.
  • Fintech has come to the fore with regulations designed to boost financial inclusion favourable to new entrants.
  • A fintech-focused law was enacted in 2018 that established a regulatory framework to continue improving financial inclusion and competitive conditions. As of year-end 2020, there are almost 100 fintechs seeking regulatory approval.
  • A new mobile payments platform, CoDi, underpinned by Mexico's real-time payments system, is further facilitating take-up of electronic payments.
  • The value of electronic payments has gained ground, although the Mexican consumer has a strong attachment to cash.
  • Card ownership has been stable at 1.9 cards per adult, with credit card ownership only representing 15 percent. Card purchase value more than doubled over the period under review.
  • Debit card purchase volume continues to grow healthily and will reach almost one-third of total debit card billed volume in 2021.
  • Visa dominates the payment card networks market, both in terms of cards in issue and billed volume, and has recovered some of the ground lost to Mastercard in 2016-18.
  • Traditionally, merchant acquiring has been carried out by the banks directly. However, new players have challenged this position over the past two years.

Mexico Payments Research | Report Contents

TABLE OF CONTENTS
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: Payments Data Tables

Appendix I: Demographics and the economy

Data table 1: Demographic and economic indicators: 2014-2020. Estimates and forecasts to 2023.
Data table 2: Ownership of key consumer devices: 2014-2020. Estimates and forecasts to 2023.
Data table 3: Internet usage by population: 2014-2020. Estimates and forecasts to 2023.

Appendix II: Payments environment

Data table 4: Access points: 2014-2020. Estimates and forecasts to 2023. Estimates for 2021.
Data table 5: Account penetration: 2014-2020. Estimates and forecasts to 2023.
Data table 6: Consumer payment trends: 2014-2020. Estimates for 2021.
Data table 7: B2C e-commerce payment methods: 2014-2020. Estimates for 2021.

Appendix III: Cards market

Data table 8: Total cards payment metrics: 2014-2020. Estimates and forecasts to 2023.
Data table 9: Contactless cards metrics: 2018-2020. Estimates and forecasts to 2023.
Data table 10: Credit card numbers: 2014-2020. Estimates and forecasts to 2023.
Data table 11: Total credit cards metrics: 2014-2020. Estimates and forecasts to 2023.
Data table 12: Credit cards profitability indicators: 2014-2020. Estimates and forecasts to 2023.
Data table 13: Debit cards numbers: 2014-2020. Estimates and forecasts to 2023.
Data table 14: Debit cards metrics: 2014-2020. Estimates and forecasts to 2023.

Appendix IV: Mobile payments

Data table 15: Mobile proximity payment metrics: 2018-2020. Estimates and forecasts to 2023.
Data table 16: Mobile P2P payments: 2017-2020. Estimates and forecasts to 2023.

Appendix V: Profit pool

Data table 17: Profit pool: 2014-2020. Estimates and forecasts to 2023 inc. credit card numbers, billed volumes, oustandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).

Appendix VI: Card networks

Data table 18: Networks' credit card market shares: 2014-2020. Estimates for 2021.
Data table 19: Networks' credit card data numbers: 2014-2020. Estimates for 2021.
Data table 20: Networks' credit card billed volume: 2014-2020. Estimates for 2021.
Data table 21: Networks' number of credit card transactions: 2014-2020. Estimates for 2021.
Data table 22: Networks' average credit card transaction value: 2014-2020. Estimates for 2021.
Data table 23: Credit card interchange fees by network: 2014-2020. Estimates for 2021.
Data table 24: Networks' debit card market shares: 2014-2020. Estimates for 2021.
Data table 25: Networks' debit card data numbers: 2014-2020. Estimates for 2021.
Data table 26: Networks' debit card billed volume: 2015-2020. Estimates and forecasts to 2022.
Data table 27: Networks' number of debit card transactions: 2014-2020. Estimates for 2021.
Data table 28: Networks' average debit card transaction value: 2014-2020. Estimates for 2021.
Data table 29: Debit card interchange fees by network: 2014-2020. Estimates for 2021.

Appendix VI1: Key retail banks and issuers

Data table 30: Key credit card issuers market shares by credit card numbers: 2016-2020. Estimates for 2021.
Data table 31: Key issuers market shares in credit card outstandings: 2016-2020. Estimates for 2021.
Data table 32: Key debit card issuers market shares by debit card numbers: 2016-2020. Estimates for 2021.

Appendix VIII: Acquirers and processing

Data table 33: Merchant acquirer credit card market share: Estimates for 2021.
Data table 34: Credit card merchant service charges: 2014-2020. Estimates and forecasts to 2023.
Data table 35: Merchant acquirer debit card market share: Estimates for 2021.
Data table 36: Debit card merchant service charges: 2014-2020. Estimates and forecasts to 2023.
Data table 37: Credit card issuer/issuing processor relationships.
Data table 38: Credit card acquirer/acquiring processor relationships.
Data table 39: Credit card issuing processor market shares by card numbers: Estimates for 2021.
Data table 40: Credit card acquiring processor market shares by the number of POS transactions: Estimates for 2021.

Appendix IX: Online acquiring

Data table 41: Online merchant acquirer market share. Estimates for 2021.

Mexico Country Report | Selected Extracts

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.

Payments Environment
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.

Mobile Payments
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.

Profit Pool
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.

Card Networks
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.

Online Acquiring
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.

Mexico Payments Report | Entities Referenced

2CheckOut
7-Eleven
ABM
Aeroméxico
Amazon
American Express
AMIPCI
Apple
Apple Pay
Asociación Mexicana de Internet
Azteca
Banamex
BanBajio
Banca Afirme
Banca Mifel
Banca Preferente Banorte
Banco Azteca
Banco de Comercio
Banco de Mexico
Banco Invex
Banco Mexicano
Banco Nacional de Mexico
Banco Santander
Banco Serfin
Banco Walmart
BanCoppel
Banjercito
Bank of America
Banorte
Banxico
BBVA Bancomer
BBVA
Benavides
Bershka
Best Buy
Billpocket
Blue Label Mexico
Blue Label Telecoms
Broxel
Buro de Credito
Cabify
Carnet
Chedraui
Circulo de Credito
Citibanamex
Citigroup
Clip
CNBV
CoDi
Comision Nacional Bancaria y de Valores
Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros
Commercial Mexicana
Condusef
Conekta
COPECE
Coppel
Costco
Delta Airlines
Diners Club
Discover
Edenred
E-Global
Elavon
Elektra
Elektra Group
EVO
Falabella Soriana
Farmacias del Ahorro
Fiesta Hotels
FIFA World Cup
First Data
Fiserv
Flap
Fygaro
Gmini
Google Pay
Grupo Bimbo
Grupo Chedraui
Grupo Elektra
Grupo Financiero Citibanamex-Accival
Grupo Invermexico
Gsmart
H-E-B
Hipotecaria Nacional
Home Depot
HSBC
Iberia Airlines
Inbursa
Inditex Group
INEGI
Instituto Nacional de Estadística y Geografía
International Telecommunication Union
Invex
ITU
iZettle
JCB
Kiwi
Klar
Lefties
Lendera
Los 40 Principales
LTOSF
Massimo Dutti
Mastercard
Mercado Libre
Mercado Pago
Microsoft
Netpay
Nu México
Nubank
Office Depot
Olympics
One Card
OpenPay
OXXO Pay
OXXO
Oysho
Oyster Financial
PayNet
PayPal
PayU
Piticó
Point
Promocion y Operacion
Prosa
Pull&Bear
Rappi
Rayados de Monterrey
Real Madrid
Red Qiubo
Saeko
Samsung Pay
Santander
Santander Central Hispano
Santander Merchant Platform Solutions
Scotiabank
ScotiaPOS
Senicreb
Servicios Electrónicos Globales
Servicomercios
Simplify Commerce
SMPS
Sociedades Financieras de Objeto Multiple
Sofomes
Soriana
SPEI
SPEI Móvil
Sr. Pago
Stori
Stradivarius
Stripe
Suburbia
Super Bowl
Telcel
Telecomm
Telefonica
Teleton
Tiendas Coppel
Transfer
Tuyyo
Uber
United Airlines
Universidad Nacional Autónoma de Mexico
Up Si Vale
Uterqüe
Visa
W Radio
Walmart
World Bank
Yaydoo
Zara Home
Zara

MORE LATIN AMERICA CARDS & PAYMENTS REPORTS

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