Mexico lags in digital payment adoption compared to Latin America

A study by México Evalúa titled “Digitalizar para crecer. El reto de transformar los pagos en México” reveals that Mexico lags behind Latin America and the Caribbean in digital payment adoption. While 86% of the population uses the internet and 77% of adults hold a formal financial product, only 41.4% of adults use digital payments, compared to a regional average of 59%.

Cash remains the dominant medium of exchange, with 80% of businesses receiving cash from customers and 85% of purchases under 500 pesos being made in cash. The study identifies a “cash equilibrium,” where businesses do not offer digital options because customers do not request them, and consumers do not demand them because they do not expect them to be available.

The report suggests that increasing digitalization could improve access to financing, reduce informality, and strengthen tax collection. Notably, 63% of adults lack formal credit; digital transaction histories could serve as an entry point to financial services for millions. However, the study also highlights challenges regarding trust and cybersecurity, noting that only three of the 24 fiscal offices consulted possess tools to track IP addresses or investigate digital fraud.