Payments: Seamless Solutions Shaping the Fashion Industry

The fashion and apparel industry, a cornerstone of Mexico’s economy, is undergoing a profound transformation driven by the demands of e-commerce and changing consumer expectations. As a sector contributing approximately 2% of the country’s manufacturing GDP, its significance cannot be overstated. With revenues projected to exceed US$22.6 billion by 2028, the adoption of diverse payment solutions is no longer just a competitive advantage — it is essential for sustained growth and profitability.

Retailers and CFOs in the industry face increasing pressure to adapt to the rise of online shopping. In 2023 alone, apparel exports from Mexico totaled over US$5.5 billion, with the United States comprising the majority of these sales. Yet, imports outpaced exports, reaching US$6.3 billion, highlighting the need for efficiency and innovation to secure a stronger foothold both domestically and abroad. However, high payment failure rates caused by inefficiencies with local acquiring banks remain a significant barrier, particularly for cross-border transactions. Addressing these issues is critical to enabling smoother operations for both exporters and domestic retailers.

Moreover, payment systems are enabling retailers to reach previously underserved markets. In Mexico, where a significant portion of the population remains unbanked, localized solutions like QR code payments and cash-to-digital conversions are bridging the financial inclusion gap. However, small and mid-market players, which form the backbone of the Mexican fashion industry, often lack access to tailored payment solutions that address their specific operational challenges. Providing these businesses with customized systems can improve their ability to compete in a rapidly evolving market.

Beyond the payment itself, the integration of artificial intelligence is shaping how retailers interact with consumers. Shoppers who were once overwhelmed by endless online selections now expect tailored experiences that simplify product discovery and enhance decision-making. AI-powered tools personalize recommendations, optimize pricing, and streamline inventory management. These technologies, paired with seamless payment solutions, create a frictionless shopping journey that boosts conversions and drives customer satisfaction. According to McKinsey, embedding AI into business models could yield a 118% cumulative increase in cash flow by 2030, making it a critical investment for growth.

AI also plays a pivotal role in fortifying payment security through machine learning, which detects fraud with unmatched precision and speed. By analyzing factors such as geolocation, device type, and unusual transaction behaviors, ML identifies hidden patterns in real time, preventing suspicious activity before it escalates. Despite the availability of these technologies, many midsized retailers in Mexico still rely on basic tools, leaving them more exposed to fraud and chargebacks. Investing in advanced fraud-prevention systems can significantly reduce 

these risks. Tailored algorithms further enhance the resilience of payment ecosystems, safeguarding both retailers’ revenues and consumers’ trust.

In this way, CFOs can address pain points with a dual advantage: reducing chargebacks significantly while improving card acceptability — two critical factors in overcoming purchase barriers and ensuring a smoother checkout experience for shoppers.

The New Pillars of Fashion Retail

Sustainability is another driving force behind consumer behavior, with younger demographics increasingly prioritizing eco-friendly and ethical practices. According to Forbes, 62% of Gen-Z shoppers prefer sustainable brands, and 73% are willing to pay a premium for such products. For Mexican retailers and manufacturers, embedding sustainability into their operations is both a moral imperative and a market opportunity. Digital payment systems can support these initiatives by offering transparency in sourcing, enabling circular fashion models, and reducing the environmental footprint associated with traditional payment methods.

In the Mexican fashion industry, acceptance rates for online card payments remain at just 38%, while alternative methods like Buy Now, Pay Later (BNPL) and OXXO Pay continue to grow in popularity. Local Payment Service Providers (PSPs) are uniquely positioned to address these gaps by offering diverse payment options and improving transaction success rates, particularly through local acquiring capabilities.

The global competitive landscape further underscores the urgency for innovation. For Mexico, competing in this environment requires a commitment to technological adoption. Digital payment solutions, when viewed as strategic investments rather than operational costs, can provide the agility and differentiation needed to succeed. By adopting diverse and innovative payment solutions that suit their needs, businesses can enable quicker settlements, improve cash flow, and leverage data-driven insights to inform strategic decisions, offering a significant edge in a rapidly evolving market.

The stakes are high, but so are the rewards. With e-commerce reshaping retail globally, businesses that embrace payment solutions tailored to their needs will position themselves as leaders in the fashion and apparel industry. Prioritizing digital transformation, integrating payment technologies, and aligning operations with the evolving demands of modern consumers will allow Mexican retailers to capitalize on the sector’s growth potential and build a resilient foundation for the future. Payments are no longer a back-end necessity — they are the engine driving retail success.