Mexico faces challenges in reducing cash usage despite SPEI system

Mexico continues to face challenges in transitioning from cash to digital payments despite the long-standing presence of the Interbank Electronic Payment System (SPEI). Although SPEI has been operational since 2004 and processed over 7,300 million transfers totaling approximately 600 trillion pesos in 2025, cash remains a dominant method for daily transactions.

In the broader Latin American context, digital transfers have grown significantly, rising from 620 million operations in 2017 to 79,800 million in 2024. While 45% of retail digital transfers in the region are now instantaneous, Mexico's adoption of digital alternatives for everyday purchases lags behind.

Regarding the tax implications of digital transfers, Mexican law provides specific exemptions for family support. Under Article 93 of the Income Tax Law (ISR), transfers between direct relatives, such as children to parents, are classified as tax-exempt donations for needs like health and food. However, taxpayers must ensure that these funds are not subsequently transferred to other descendants to maintain the exemption. To avoid scrutiny from the Tax Administration Service (SAT), authorities recommend prioritizing digital transfers over cash to prevent deposits from being misinterpreted as undeclared commercial income.