eCommerce & Technology

Domestic and preferred card schemes

Many Mexican cards are not suited for cross-border online use. A local acquirer therefore is recommended for enhanced autorisation rates and settlements. A small percentage of online payments are done via PayPal and (offline or online) bank transfers. 



Gemalto, the world leader in digital security, announces that BBVA Bancomer, the largest bank in Mexico, is using its Ezio® Suite to secure growing internet banking and mobile banking usage in Mexico. The new solution leverages the benefits of Ezio optical technologies to validate transactions. Fraud, social engineering and phishing attacks present a difficult challenge. The Ezio Suite gives banks the power and flexibility to quickly deploy authentication and transaction signing solutions to defend against attack, while maintaining best in class user experience

Mobile Appetite

Almost half of Mexicans are connected to the Internet, and of these users, roughly two-thirds make purchases online. 

The Competitive Intelligence Unit (CIU) estimates the number of smartphone users rose 41.4% in Q2 2015 when compared to the same period a year earlier. This robust increase in the base of users of the advanced mobile device brought their total up to 62.5 million, or 59.8% of all mobile connections in the country. Penetration levels among top earners have been higher for a while, leaving further growth to low-income consumers. It is precisely this group—with limited disposable income and requiring inexpensive devices—who is boosting sales of smartphones made by “underdog” brands like Lanix, ZTE and Huawei. According to the CIU, the group of smartphone manufacturers with less than a 2% slice of the market in Mexico expanded their combined share from 3.4% in Q2 2014 to 9.2% in the same period this year.

Considering that growth in the bases of smartphone users and overall mobile internet users in Mexico are now primarily driven by newcomers from the lower rungs of the socioeconomic ladder, it is unsurprising that second generation (2G) connections represented the majority of mobile accesses to the web in Q1 2015, according to the CIU. 3G connections took just over a third of the market while 4G LTE access grabbed a 7.3% slice during the same period.

Alternative Payments methods

Mexico is the second-biggest retail ecommerce market in Latin America, and compared to Brazil, a much more mobile market when it comes to online purchases. Besides cards, cash-based methods and bank transfers are also popular in Mexico, with a smaller percentage of payments occurring via PayPal. Installments (for cards) are also popular, and a domestic entity is required to support this type of payment. 


Other Payments Methods

As the ecommerce market matures, international payment companies are launching ever more sophisticated products into Latin America, encroaching on the turf of legacy players. Visa launched Visa Checkout—a card-on-file wallet—in Mexico, Colombia, and Brazil in 2015 and PayPal’s OneTouch feature makes ecommerce more seamless. E-commerce giant AliExpress has made signi cant strides with its proprietary gateway, AliPay, and YellowPepper is powering multiple digital wallets in Colombia, Mexico, and Ecuador.


Digital Invoicing

Mexico, Brazil and Argentina have teamed up to launch a pilot program that strengthens cooperation between the countries in exchanging digital invoices. The nations are already situated in one of the world’s highest-ranked continents when it comes to digital billing. 


Customer Experience

Online commerce is growing slowly but steadily in Mexico, thanks in large part to the ways in which digital merchants are reaching the unbanked population of the country. As a recent Wall Street Journal article explains, although eCommerce presently only makes up about 2 percent of Mexico’s approximately $203 billion in annual retail sales, that’s four times what the percentage was five years ago, and consulting firm Euromonitor International predicts that it will double again by 2020.

The obstacle for online retailers, the WSJ story goes on to share, is that only 22.6 million credit cards are in use among a population of 119.5 million, which obviously limits the ability for many consumers in the region to pay for goods via the Internet. The solution has been to expand those consumers’ payment options.

Product information for clothing can be incomplete online, and returns are not always simple, so customers prefer to finish their purchase o line to reduce the risk of buying clothes that do not meet their expecta- tions. For less customized products such as television sets and mobile phones, Mexicans feel more confident making purchases online, a pattern that is reflected in the higher percentages of sales completed online for these items.

Local Entities

Installments (for cards) are also popular, and a domestic entity is required to support this type of payment. 

Conekta, established in Mexico in 2012, enables advanced features less commonly found in Latin America, including recurring payments, card-on-file and anti-fraud tools that negate the need for authorization via 3D Secure.

Mobiles Payments

In 2015, it is expected that Mexico will record a 40% increase in mobile commerce. After Brazil, Mexico is the second largest ecommerce market in Latin America. It has substantially grown during the last few years and the trends show that it will continue to do so in the future. 

Only 17 percent of mobile phone users were shopping on their smartphones as of 2012, a percentage that will certainly increase in coming years. Higher-income consumers in Mexico's three largest cities—Mexico City, Guadalajara, and Monterrey—accounted for more than half of all online sales in 2013, so as the rest of the country catches up there will be an opportunity for online retailers. Mexico's proximity to the United States makes it a prime location for cross-border ecommerce.

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