Alternative payments reign Mexican market
Low credit card penetration forces traders to look for alternative payments in Mexico.
Mexicans, Brazilians, Argentines, Uruguayans and Portuguese share not only a passion for soccer but also their preference for paying in cash. One of the reasons why online shoppers in Mexico adopted this payment method is the low penetration of credit cards and banks among its population of 130 million. While most people rather pay cash, only 28% of online merchants offer this payment method on their websites. This common mistake makes it almost impossible for the user to pay online. In order to avoid that, companies need to offer all local payment options that reach all segments of the population.
Mexican users cannot buy in several international websites because they don’t offer local payment options. Due to this fact it is always recommend that merchants process local credit and debit cards.
To do this, your company needs a local card processor, which will allow your business to accept all local credit and debit cards issued in Mexico. With this strategic decision, Mexican cardholders will be able to purchase on your website, which in turn will increase acceptance and conversion. BoaCompra offers local credit and debit cards in Mexico, as well as a wide range of local payment services.
Mexican e-commerce is becoming one of the country's most dynamic sectors. At this pace, it will become LATAM's next e-commerce giant with online retail revenues expected to hit US$ 6.7 billion by 2019. Adapting to the culture of each market is a must, and cash is without a doubt the most trusted way of payment in Mexico.
Security still remains as one of the main reasons for users not to buy online and offering cash options will only encourage those without a card or a bank account, making it not just a payment method but a loyalty and user acquisition tool.
Safety in any e-commerce environment is not a concern only for Mexicans but also for BoaCompra, which is PCI DSS certified and fulfils all the security requirements that this protocol offers.