Sheinbaum Prepares Digital Economy Law to Curb Cash Use

Mexico's federal government will submit a Digital Economy Law to Congress alongside the 2027 Economic Package, aiming to gradually reduce cash use through phased timelines. The reform responds to a cash-dominant economy where digital payments cover only 18% of transactions, with cash used in up to 95% of purchases under 500 pesos. Fintechs, e-commerce platforms, and micro and small businesses are the key stakeholders as Mexico's maturing digital-payments sector, projected to reach 86 million fintech users by 2027, positions itself to support the transition.

Mexico's federal government will send Congress a Digital Economy Law as part of the reforms accompanying the 2027 Economic Package, President Claudia Sheinbaum confirmed on Sept. 8. The initiative aims to gradually reduce the country's reliance on cash in everyday transactions, setting specific timelines to push forward the digitalization of economic operations.

The president said the proposal would not arrive alone: alongside the fiscal and budgetary package, the federal Executive will also submit initiatives designed to strengthen micro and small businesses. "Tomorrow we will explain all the laws we' ae sending to Congress, because it is not just the Economic Package, the digital economy law is also being sent," Sheinbaum said, adding that full details would be unveiled Sept. 9, during the package's public presentation.

The 2027 Economic Package was formally delivered on Sept. 8 to the Chamber of Deputies and later to the Senate. Sheinbaum described the document as reflecting "gradual fiscal consolidation" that, she insisted, would not translate into cuts to public investment or spending on welfare, health, and education. Finance Secretary Édgar Amador Zamora will lead this week's briefings to walk the public through the macroeconomic assumptions, the Revenue Law initiative, and the proposed spending budget, with Sept. 9’s session focused on tax collection and efforts to combat fiscal evasion, and Thursday's on support programs for micro and small businesses.

The Backdrop: An Economy Still Dominated by Cash

Sheinbaum's push to accelerate digitalization comes as Mexico remains, by regional standards, a markedly cash-dependent economy. According to Mexico Business News' analysis of the trust barriers facing digital payments, digital payments account for just 18% of transactions in the country, while cash still covers the remaining 82%, a gap the fintech sector, led by players such as STP, Stori and tapi, has been working to close by leaning on the instant-transfer infrastructure of the Interbank Electronic Payments System (SPEI) and behavioral-science-driven product design aimed at building trust among unbanked users.

The challenge is even more pronounced for smaller purchases. Bank of Mexico data shows that cash is used in up to 95% of transactions under 500 pesos (about US$27), a figure that helps explain why any government strategy to reduce cash use would need staggered timelines, like the ones Sheinbaum has promised, rather than an abrupt shift.

The new law would also build on a trend the private sector has already been driving. Companies such as MercadoLibre and StoneCo have aggressively expanded data-driven credit services, while super apps are accelerating digital financial inclusion by broadening access to payments, credit, and on-demand insurance, positioning Mexico alongside Brazil as a regional leader in the shift toward digital commerce and finance.

Mexico's fintech industry, for its part, is entering a more mature phase that could smooth the reform's rollout. A recent report cited by Mexico Business News on the sector's move toward profitability notes that the industry has moved past a stage defined primarily by rapid growth in company numbers and is now prioritizing integration, collaboration, and operational sustainability, reducing its dependence on outside venture capital. That same secto is expected to reach 86 million users by 2027, the same fiscal year covered by the package Sheinbaum announced, suggesting a growing base of digital adoption the new legislation could build on.

What Comes Next

Sheinbaum has not yet detailed the specific timelines the Digital Economy Law will set, nor the penalties or incentives that will accompany the push to reduce cash use; the formal presentation is expected to clarify the initiative's technical design. For the private sector, particularly the fintechs and e-commerce platforms already investing in payments infrastructure, the law would represent regulatory backing for a transition the industry has championed for years. Still, the underlying challenge, shifting habits deeply rooted in a country where cash dominates even the smallest purchases, will continue to hinge on the trust that both the government and the digital ecosystem's private players are able to build.