90% of Mexicans prefer to pay in cash

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According to the Global Cash Index, prepared by PYMNTS  and CardTronics, in Mexico of consumers prefer to make payments using cash . In a market that is predicted to be worth 17 billion in the coming years , it is important to consider the market share that cash payments have, which in 2016 reached  Relevant data from the Mexican market In Mexico there are 37.7 ATMs per 100 thousand people , as well as 10.3 bank branches for the same population. Thus, the use of cash continues to play a vital role in the Mexican economy, dominating the financial landscape. Thus, with cash being an essential form of payment for the population, national and international retailers must adjust their payment strategy taking this into account . Tweet Cash in Mexico plays a great role in eCommerce, according to PYMNTS study For e-commerce giants like Walmart and Amazon it has involved using a hybrid payments system , which encourages shoppers.  

Amazon, for example, launched its Amazon Cash program in October 2017 , which allows its customers to add credit to their online account in more than convenience stores and pharmacies in Mexico. Walmart , for its part, installed more than 2 thousand kiosks in its physical stores , where C Level Contact List customers can allow customers to buy online and pay in stores. The preference for cash outpaces other nations. The PYMNTS Global Cash Index: Mexico Edition study found that, among the United States, Brazil and Mexico, the latter nation has the greatest tendency to use cash, with market share in 2016 with respect to its Gross Domestic Product ( GDP), while the United States has a rate of and Brazil Along with this propensity, Mexico is the third largest economy of the three , with a Gross Domestic Product of 1,046 billion dollars in 2016. Furthermore, its compound annual growth of between 2016 and 2021 helps predict that Mexico will reach 1,470 billion dollars.



Gradual decline in cash use in the last decade Although cash usage has been historically high, recent research indicates that cash has been on a gradual decline over the past decade. Cash reduced its market share in Mexico from  of GDP in 2006 to 26.1 in 2016. However, higher cash usage than other nations will remain in the future. Although this trend usually decreases as there is more availability of cards and digital payments, in Mexico the influence of cash will be more difficult to reduce . Banking infrastructure that does not cover the needs of the entire population does not help either. The fact that there are few ATMs and branches, in addition to a culture of economy external to banks, will not help make the transition to other payment methods easy . Will the trend of paying in cash continue? According to the study, withdrawals at bank windows have decreased , from of GDP in However, they have increased the use of ATMs , growing from.