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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 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 regulation 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

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 in Mexico

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
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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