SPEI: Two Decades of Digital Payment Innovation in Mexico

August 2024 marks 20 years since the Bank of Mexico launched the Interbank Electronic Payment System (SPEI), and it is impossible to ignore the profound impact it has had on our economy. What began as a pioneering system in its time has evolved into one of the most efficient real-time payment methods in the world, placing Mexico at the forefront of financial innovation.

In a global context where digital payments are the backbone of the modern economy, Mexico has achieved what many countries are only beginning to explore. While Brazil introduced its real-time payment system, Pix, in 2020, and the United States is just preparing to launch FedNow, SPEI has spent two decades demonstrating that it is possible to build a robust and accessible infrastructure in a country with significant economic and technological challenges. This system has not only allowed Mexicans to make transfers quickly and securely but has also set a standard that other emerging economies look to with admiration.

It is interesting to note that, unlike other countries where the adoption of real-time payments is limited to certain financial institutions, in Mexico, all the bank entities participate in SPEI. This inclusion has been crucial in ensuring that any customer, regardless of their bank, can make payments efficiently, eliminating barriers that still persist in other nations. SPEI 's direct participants from Banxico, such as Sistema de Transferencias y Pagos - STP, have also promoted its constant use.

The massive adoption of SPEI is proof of its success: 6 out of 10 Mexicans use this system, and since its launch, millions of transactions have been made daily. The numbers grow exponentially every year, reflecting not only confidence in the system but also a cultural shift toward reduced cash usage, thereby promoting a more formal and transparent economy.  

According to official data, SPEI transfers experienced a 38% growth in real-time transactions, with 3,894 million transfers registered in 2023 compared to 2,834 million operations in 2022. This growth has been sustained in recent years, but the big leap occurred in 2021, during the pandemic year, with 62% growth compared to the previous year.

Moreover, as suggested by data from the Bank of Mexico (Banxico), the growth of other real-time payments has gained momentum in recent years, with the launch of the payment method Cobro Digital (CoDi) in 2019, which expanded the use of real-time payments to everyday low-value transactions through QR codes and NFC technology, with a total of more than 13 million operations so far.

Today, the commitment of all entities that offer a financial service or product to both companies and end customers is to promote financial education. As long as we have more users familiar with digital banking and its benefits, and as its use increases,, the market can become more innovative. 

Adequate financial education empowers citizens, allowing them to better manage their resources, plan their future and take advantage of economic opportunities, which in turn boosts the country's economic growth and reduces inequality. It also strengthens financial stability at the individual and collective levels, promoting a more robust and sustainable financial system.

Paving the Way for Innovation With Open Finance

That is the reason that we cannot stop here. As the world continues to move toward digitalization, SPEI and other systems like CoDi and Dimo will continue to evolve in Mexico. Other financial services will also evolve with the integration of open finance, promising to create more complete and personalized financial experiences for users, consolidating Mexico as a leader in financial innovation in Latin America.

The development of open banking and digital finance also brings an invaluable opportunity: financial inclusion. In a country where only 39% of the population makes digital payments, the possibility of democratizing access to personalized financial services is not only desirable but necessary. Open banking can be the bridge that connects the unbanked population with the financial system, offering accessible and secure tools that improve their quality of life.

The relationship between open finance and digital payments in Mexico has enormous potential to transform the country's financial ecosystem. As regulations are refined and technologies are more widely adopted, it is expected that interoperability and collaboration among different actors will drive greater financial inclusion and broader adoption of digital payments.

SPEI, in its 20 years of existence, is not just a testament to Mexico's ability to innovate but also a platform upon which to build the country's economic future. As we continue to advance the digitalization of our finances, it is vital to continue fostering inclusion and accessibility for all. In this new era of digital payments, Mexico has the opportunity to continue leading the way and be an example on a global level.