Mexico and Argentina accelerate digital payment adoption during sales promos

In Mexico, the annual Hot Sale shopping event beginning on May 25 offers merchants steep discounts on point‑of‑sale terminals, contactless equipment and tap‑to‑pay mobile solutions. Organisers say more than 700 brands will participate, and the promotions aim to help cash‑reliant small retailers test digital payment options without large upfront costs. Industry data show that only about half of small businesses accept electronic payments, while roughly 70 % of terminals already support contactless technology and around 30 % of card transactions are processed contactlessly.

In Argentina, digital wallets now handle a third of in‑store transaction volume and nearly 40 % of e‑commerce sales. Cash withdrawals fell 25 % from December to February, reflecting a shift toward electronic money. Wallet providers advertise competitive interest rates—averaging 20 % annual, with some offering up to 27 % TNA—and run frequent rebate promotions. Analysts note that these rebates can induce extra spending, a phenomenon described by MIT researchers as the “pain of paying” effect, where digital payment reduces the perceived cost of purchases. Both countries see digital payments as a growth driver, but consumers are cautioned to distinguish genuine savings from spending that is merely discounted.