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News Article

Contactless Payment to Emerge in Mexico

By MBN Staff | Mon, 12/21/2020 - 16:22

Contactless modalities are already a staple in many parts of Europe and the US, but have thus far not broken much ground in the Mexican market. Today, American companies promoting its usage are turning their eyes toward the other side of the Rio Grande, experts envisage the trend to grow in 2021.

Forbes Mexico reported that it expects contactless to become popular in various ways, such as contactless payments, which allow paying for a purchase by using radio frequency identification technologies embedded in credit or debit cards, key chains, smart cards, mobile phones or other devices. Users simply swipe their device past a paying terminal and both devices swiftly make the payment. However, the payment does not require a PIN and directly relies on frequency identification, meaning that some risks stay attached to its use. Nonetheless, as Security Intelligence points out, it still remains safer than many already existing options on the market.

Furthermore, the trend could help companies integrate hardware into systems where they can be operated remotely, such as for printers and control printers. The main added benefit is that people will need much fewer physical points of contact, which also helps slow the spread of viruses and bacteria.

Even though contactless or touchless payment is much less widely available in Mexico than it is in Europe or the US, Forbes expects it to grow further especially now that companies are already adapting and opting into new technologies. Contactless modalities have been moving toward Mexico for over a year now. After all, many multinational companies have reported to have good experiences with contactless payments abroad.

In this regard, Apple’s popular contactless payment platform Apple Pay has announced it will come to Mexico ‘very soon’. The first banks and retailers supporting the app have already been reported by 9to5Mac. Banregio, Hey Banco, Inbursa, and CitiBanamex are among the first banks to support it, and The Cheesecake Factory, Chili’s and Domino’s are among the first retailers to be allowing Apple Pay.

Another notable player in the emerging contactless market could be Whatsapp Pay. The platform launched in June 2020 in Brazil, but was suspended only 8 days later, BNAmericas reported. Nonetheless, Whastapp has been in communication with regulators and hopes to launch its Pay platform once again in the coming months, after which it said it will turn its attention to other Latin American markets. Of these, Mexico has been reported to be the next country in line.

The data used in this article was sourced from:  
Forbes, Security Intelligence, BNAmericas
MBN Staff MBN Staff MBN staff