Mexico Senate approves Digital Economy Law to promote electronic payments

The Mexican Senate has approved the Digital Economy Law for Digital and Electronic Payments, aimed at promoting the adoption of electronic transactions for government procedures and the purchase of goods and services. The legislation seeks to gradually reduce the use of cash by integrating methods such as QR codes, NFC technology, debit and credit cards, and bank transfers.

Under the new law, the Ministry of Finance and Public Credit (SHCP) is authorized to designate specific strategic sectors where digital-only payments may be required. Additionally, the Bank of Mexico is empowered to implement software programs to facilitate electronic transfers and establish measures to improve financial infrastructure and application standardization.

While the law aims to modernize the financial system and increase economic inclusion for small and medium-sized enterprises, business owners in regions like the State of Mexico have expressed concerns. Challenges include high levels of informality, complex bureaucratic processes for formalization, and the continued reliance on cash in peripheral and remote areas. The law does include provisions to allow cash or checks during system contingencies.