Mexico's E-commerce Boom Fuels Fintechs

The influence of e-commerce on consumer behavior and the retail industry continues to expand rapidly. As a result, ensuring secure and efficient payment methods and providing an enhanced online shopping experience have become vital considerations to meet the growing demands of tech-savvy consumers. 

Mexico's e-commerce industry experienced an extraordinary boom in 2022, achieving a record-breaking milestone of US$35.5 billion in authorized sales. This remarkable 23% surge propelled Mexico to become the second-largest online market in Latin America. The sector's significant contribution of about 6% to Mexico's Gross Domestic Product (GDP) highlights its growing importance in the country's economy.

Leading the pack in terms of sales volume are major players like Mercado Libre, Amazon and Walmart Mexico. Mercado Libre alone achieved US$1.86 billion in revenue in Mexico in 2022. Additionally, Liverpool and Coppel have emerged as strong contenders in the e-commerce landscape, particularly in the clothing, footwear and holiday shopping sectors.

“Aside from serving as a regionally strategic gateway to the entire latín American market, the country has one of the fastest-growing e-commerce sectors in the world… Since last year Mexico has seen a constant flow of new users migrate toward e-commerce platforms, prompted by the continuation of the COVID-19 pandemic,” says Christian Leon Trueba, Director of LATAM, Signifyd.

The National Commission for the Protection and Defence of Users of Financial Services (CONDUSEF) reports that unrecognized charges are declining from 1.1% in 2020 to just 0.5% in 2022. However, the total value of unrecognized purchases or returns still amounted to US$533.6 million in 2022.

Looking ahead, the prospects for e-commerce and fintech startups in Mexico remain bright, with the industry's exponential growth and its significant contribution to the national GDP reflecting untapped potential and soaring market demand. As the e-commerce landscape continues to thrive, prioritizing secure and efficient payment methods, seamless online shopping experiences and accessible financial services will remain crucial for both consumers and businesses.

"With over 71% of the population having internet access and significant adoption of digital tools, such as the usage of smartphones by over 80 million people and the emergence of a thriving market for social media and streaming services, Mexico proves to be highly connected. Concurrently, the fintech sector has experienced a remarkable surge, bridging the gap between financial services and the market. Since 2016, the industry has seen an impressive average annual growth rate of 23% percent, resulting in the establishment of more than 400 fintech companies in Mexico," says Héctor Cárdenas, CEO and founder, Conekta.