How Connected Data Redefines Payment Experiences

As Mexico prepares for the 2026 FIFA World Cup, the country’s financial sector is undergoing a structural shift from basic digital connectivity toward deeper data orchestration. At the Mexico Finance & Fintech Summit, executives and fintech leaders convened for the panel “How Connected Data Redefines Payment Experiences” to address persistent friction in a market where 80% of transactions are still conducted in cash, despite a growing ecosystem of 19.5 million digital financial users.

The discussion focused on the need for unified infrastructure to bridge the gap between high digital adoption and actual transaction behavior. While the embedded lending sector has reached a valuation of US$9.25 billion and AI adoption among fintechs stands at 77%, panelists argued that the next stage of evolution depends on interoperable data systems that deliver tangible benefits to both small and medium-sized enterprises (SMEs) and end users.

The Challenge of Persistent Cash Reliance

Despite a decade of digital progress, the shift away from cash remains gradual. “Six years ago, cash transactions were at 90%; today they are 80%. This shows the unified payment infrastructure is advancing, but there is still a long way to go,” said Jaime Márquez, Partner and Chief Business Development Officer, STP. He emphasized that expanding payment options is a key driver of customer loyalty: “Offering what users prefer is the best way to build loyalty.”

Márquez noted that reaching the 2030 target of reducing cash usage to 50% will require moving beyond siloed systems. “Data unification does not mean all information sits with a single provider, but rather that there is collaboration between them. The consumer must ultimately benefit, but SMEs—who are the backbone of the economy—must also be included. We need to stop working in silos,” he explained.

Automation and the Recurring Economy

The rise of the “recurring economy” is emerging as a key indicator of market maturity. Tapi, which recently secured a US$27 million Series B round and processes a monthly volume of US$2.6 billion, is focused on automating bill payments to reduce friction in collections.

“There is still a lot to build; data is not yet connected, which is why cash remains so important. Inclusion has not fully materialized,” said Kevin Litvin, Co-founder and CBO, Tapi. He noted that while many Mexicans have bank accounts, usage remains limited. “Financial education is key. Most people have a bank account, but it is of little use if payday comes and they withdraw everything to operate in cash for the rest of the month.”

Litvin also pointed to an upcoming technological shift: “A major change in payment methods is coming. The rise of agentic AI and automated payment management will transform everything. Companies handling millions of transactions must stay at the forefront of innovation.”

Eliminating Friction Through Unified Identity

For global platforms such as PayPal, the focus has shifted toward using data to build a portable and secure user identity. Allan Picos, Commercial Director, PayPal México, said data unification strengthens both merchant and consumer experiences. “On the user side, it increases comfort and trust, and on the merchant side, it helps better understand what to offer,” he said.

Picos noted that post-pandemic consumers now expect a hybrid mix of payment options, from QR codes to dynamic CVV cards. However, he identified institutional behavior as a barrier to trust. “People will trust access to their data more when institutions stop using it to push every possible product that benefits themselves, and instead focus on offering the product that truly benefits the user,” he said.

Solving the Retention and Fraud Challenge

Rapid growth in digital banking—an 88% year-over-year increase in Latin America—has exposed a key challenge in user retention. Alejandra Soberón, Country Manager, Mixpanel, noted that one-week retention rates for financial apps can fall to 10.6%.

Soberón argued that the core issue is the lack of translation between data and user value. “The data exists, but only corporations are benefiting from it; it has not been translated into value for users,” she said. She also called for a shift in fraud prevention approaches: “We can already identify users who commit fraud, but we are not analyzing fraudulent behavior patterns. If we could map those journeys, we could detect fraud earlier.”

The Infrastructure of Global Scale

Stripe, which processed US$1.9 trillion globally in 2025, is operating in a Mexican market where more than 62% of transactions are mobile-first. Antonio Fernández, Country Lead for Mexico, Stripe, said fragmentation remains a key challenge. “We often fail to recognize that it is the same user paying across different products and services. Unifying data helps reduce false positives and ensures a consistent experience,” he said.

He added that behavioral signals can strengthen transaction security. “If we understand buyer behavior before authorization—how quickly they entered data, or whether it was typed or pasted—we can better assess whether the user is legitimate,” he explained.

Fernández also highlighted structural limitations in the ecosystem. “Many payment providers were designed for card acceptance only, so when wallets, Apple Pay, and other methods enter the system, the limitations become clear,” he said.

Conclusion: Toward a Unified Standard

The summit concluded with consensus that Mexico’s 2026 digital transaction surge must be supported by unified APIs and stronger collaboration frameworks. With the February 2026 mandate for the biometric CURP establishing a new identity baseline, the sector is moving toward a model where fraud detection, credit scoring, and loyalty systems are increasingly integrated.

As panelists noted, the ultimate measure of success will be the ability to shift the vast majority of small-ticket cash transactions into the formal digital economy, ensuring that SMEs and consumers alike can fully realize the value of their own data.