Mexico Shifts Toward Digital Payments in Retail, E-Commerce

Mexico’s reliance on cash for point-of-sale transactions is projected to decline from 40% in 2025 to 35% by 2030 as consumers increasingly adopt cards and digital wallets. The shift is accelerating the need for merchants and financial institutions to modernize payment infrastructure and adapt regulatory frameworks to a more digital economy. Expanding electronic payments could reduce operating costs, improve transaction transparency, and strengthen financial inclusion, particularly among underserved consumers across the retail and e-commerce sectors.

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Cash transactions at Mexican points of sale are projected to decline from 40% of total transaction value in 2025 to 35% by 2030, according to the 11th edition of the Global Payments Report 2026. The shift reflects a structural transition toward digital payment methods as businesses and consumers adapt to evolving purchasing habits. The report, which analyzes payment trends across 42 countries and forecasts developments through 2030, highlights growing demand for faster, more secure, and more convenient transaction methods, accelerating digital adoption across both physical retail and e-commerce channels.

The report also projects a decline in cash usage within e-commerce, where cash-based payments are expected to fall from 9% of total online transaction value in 2025 to 7% by 2030. While cash remains relevant for lower-value purchases and among underbanked populations, digital alternatives continue to gain market share.

Credit and debit cards remain the dominant payment method in Mexico’s e-commerce market, accounting for 32% of total online transaction value. At the same time, digital wallets and other emerging payment solutions are expanding their presence as consumers increasingly prioritize security, speed, and ease of use in everyday transactions.

“Consumers are showing greater openness to and interest in payment methods that are fast, simple, and secure for everyday use,” said Juan Pablo D’Antiochia, General Manager, Enterprise for Global Payments in Latin America.

The findings point to the emergence of a hybrid payments ecosystem in Mexico, where cash and digital methods coexist, although the long-term trajectory clearly favors digitization. This transition is driving the modernization of payment infrastructure, regulatory frameworks, and customer experience strategies.

For businesses, reducing reliance on cash can lower operating costs, reduce transaction friction, and improve financial traceability, strengthening competitiveness in both domestic and international markets.

The report suggests that these trends will continue to accelerate over the coming years, expanding the use of electronic payments across both brick-and-mortar retail and online commerce. Financial institutions and merchants that invest in digital payment capabilities may be better positioned to capture new customer segments, improve customer retention, and capitalize on changing consumer preferences.

In addition, broader adoption of digital payments could support financial inclusion by expanding access to formal financial services for millions of Mexicans who continue to rely primarily on cash transactions.

Government and Financial Institutions Target MSME Digitalization

To accelerate the shift toward digital payments and reduce cash dependence, the Ministry of Economy (SE), Visa, BBVA, and Santander México launched a joint initiative in December 2025 called Grow Your MSMEs with Digital Payments. The program aims to enable at least one million micro, small, and medium-sized enterprises (MSMEs) to accept digital payments.

The initiative forms part of Plan México, the federal government’s economic strategy focused on digitalization, reducing cash usage, and expanding access to commercial credit. Economy Minister Marcelo Ebrard noted that approximately 3.2 million MSMEs in Mexico currently lack the ability to accept digital payments, limiting their access to a broader range of financial services.

According to the 2023 National Survey of Business Financing, only 52% of MSMEs accepted card payments. Among businesses that do accept cards, 98% cited customer demand as the primary reason, while 70% reported increased sales potential and 62% said digital payments improved sales tracking and accounting processes.

Francisco Valdivia, General Director, Visa Mexico, said digital payment acceptance is a key driver of financial inclusion because it facilitates access to credit, insurance, and other services that support business growth. The initiative’s first phase will be implemented across 10 states, including several host cities for the 2026 FIFA World Cup. The tournament is expected to generate approximately US$3 billion in economic activity in Mexico, increasing the need for efficient and secure payment systems.

However, expanding adoption among consumers who continue to rely on cash will require targeted incentives and policy measures, according to Ximena Aleman, CEO and Co-Founder, Prometeo. In an interview with MBN, Aleman argued that reducing cash dependence should be treated as a national policy priority.

She pointed to the success of Brazil’s Pix system, developed by the Central Bank of Brazil, which allows users to transfer funds instantly using simple identifiers such as a phone number, email address, taxpayer identification number, or a randomly generated key linked to a bank account.

Aleman contrasted Pix with Banxico’s CoDi platform, which she said has struggled to achieve widespread adoption because users must initiate transactions through a code-based process that is less intuitive. “Mexican users are digital,” Aleman said, noting that the country already possesses the internet penetration and technological infrastructure necessary to support broader digital payment adoption. To accelerate the transition, she argued that consumers must be offered stronger guarantees, better user experiences, and clear incentives to move away from cash.