Future of Payments: Legacy Methods, Aggregators and Payment Types

As businesses compete for customers' attention, offering various payment options and services is becoming essential. Customers are more demanding than ever and require fast, secure and convenient payment options that fit their lifestyles. As the online sales grow, businesses must strive to offer clients the payment options they want or risk being left behind.

The future of payments is a critical matter for businesses in the digital age, as customers demand fast, secure and convenient payment options. Traditional payment methods, such as cash and checks, are gradually being replaced by digital payments, including credit and debit cards, mobile payments and e-wallets. "The market has expanded and has allowed businesses to materialize experiences that previously seemed very distant in Mexico," says Erick MacKinney, Vice President of Market Development, Kushki.

Mexico has sharply grow its number of internet users in recent years, and e-commerce has followed suit. Thus, businesses will likely have to adapt to a larger number of online consumers and transform their payment methods accordingly. Legacy payment methods are slowly being phased out as digital payments become the norm. 

"Technology, data and support play an integral part in ensuring flexible and efficient payment transactions," says Anna Aguilar Gallart, Sales Director, Adyen.  Credit and debit cards are widely accepted and continue to be popular choices for online and offline transactions. Mobile payments and e-wallets are also gaining popularity, especially among younger generations who prefer to use their smartphones for payments. In response, businesses increasingly integrate mobile payment options into their checkout processes to offer customers a seamless and convenient payment experience. 

Omnichannel is also becoming more important as businesses seek more sophisticated choices through different channels. Blending the physical and digital world is becoming essential and alternative payment methods are gaining ground.

In addition, a new generation of payment aggregators and platforms is emerging, offering new payment types and services that cater to the evolving needs of businesses and customers. The emergence of aggregators has brought disruptive changes to the digital ecosystem, turning them into important and decisive players in the industry. 

Payment aggregators and platforms are transforming the payment landscape. They can give businesses access to multiple options, allowing them to provide their customers a more comprehensive range of payment choices. In addition, some payment platforms are leveraging blockchain technology to create new payment modes, such as paying through cryptocurrencies.

By offering a range of payment options, businesses can appeal to a wider audience and enhance the customer experience.

The pandemic accelerated the e-commerce ecosystem and forced companies to adapt to what was happening in the world. Companies that were not prepared could not achieve their objectives, but those that were able to position themselves have turned into market leaders.

Strategies have become increasingly diversified and sophisticated due to consumer demands. Businesses must assemble specialized teams, as there is a high demand for sophisticated payment models. "Businesses are asking for more sophistication to have different access channels. This is becoming more important and cashless payments are growing in double digits," says Eduardo Santíllan Del Rio, Head of Mexico, Verifone.

The digital payments ecosystem in Mexico is constantly evolving and players seeking to lead in the industry must have a clear and sophisticated vision. In this regard, technical sophistication and omnichannel capabilities are essential pillars that must be considered to achieve a better customer purchasing experience. Collaboration between the different actors in the ecosystem is essential, as competition enriches and helps provide a better solution that benefits end customers. However, the adoption of these strategies depends on the heart and idiosyncrasy of the company, says Aguilar.