Mexico E-Commerce to Grow 25% Annually on Digital Payments

Mexico’s e-commerce sector is projected to grow at a compound annual growth rate (CAGR) of 25% from 2023 to 2027, reaching an estimated value of US$184.2 billion, according to global payment platform Nuvei. This expansion is fueled by a young, digitally connected population—particularly those aged 25 to 44—and the rapid adoption of digital payment methods such as e-wallets and real-time transfers.

Online retail leads Mexico’s e-commerce market, representing 75% of total activity. Categories like apparel, appliances, and beauty products are experiencing significant growth. The report forecasts digital wallets as the fastest-growing payment method, with a 30% CAGR from 2023 to 2027. Debit card use is expected to surpass credit cards by 2027, while cash usage is predicted to drop from 8% to 3%. Additionally, the rise of "buy now, pay later" (BNPL) options highlights shifting consumer payment preferences.

Despite strong growth, only 58% of Mexico’s population has access to financial accounts, indicating low financial inclusion levels. The regulatory environment remains complex, characterized by evolving tax policies and stringent consumer protection requirements. High rates of online payment fraud also present challenges, underscoring the need for advanced technologies and robust risk management strategies.

Juan Jorge Soto, Nuvei’s General Manager for Latin America, highlighted the opportunities created by Mexico’s ongoing digital payments transformation. He emphasized the importance of real-time payments for enabling faster, safer, and more accessible transactions and stressed Nuvei’s commitment to offering tailored solutions, including mobile-optimized platforms and the integration of local payment methods.

The report also underscores the growing significance of cross-border commerce, bolstered by trade agreements such as the USMCA. These agreements position Mexico as a strategic hub for expanding operations across North America.