Study: 94% of Mexican Consumers Use Mobile Banking

mobile payment

Mexico is seeing a surge in consumer interest in online payment and banking tools, particularly when it comes to mobile-optimized features.

A recent report found that 94% of Mexican consumers use mobile banking apps or online banking services, even though the country has a large unbanked population. The report also shows that alternative mobile payment services — those not tied to traditional bank accounts — are even more popular in Mexico, with 96% of those surveyed using them.

These findings indicate that smartphones likely will continue to play a major role in Latin America’s online banking ecosystem, especially as social commerce — purchases made using social media apps or platforms — is increasing in the region as well.

The report noted that half of all of consumers surveyed in the countries of Argentina, Brazil, Colombia and Mexico have made social commerce purchases, a sign that this channel may also see substantial growth over the next few years.

Cash Still King of Mexican Online Payment World

While digital payment services are becoming more popular and available in Mexico, customers still aren’t quite ready to let go of the trusted payment methods they’ve used for years.

Cash accounted for 67% of the online payments Mexican consumers made last year using digital payment service Conekta, according to a recent report from the company.

Consumers will typically make these payments by presenting cash in exchange for items at key locations. The method remains a staple — particularly for unbanked consumers who want to take advantage of eCommerce’s conveniences.

Around 60% of people in Mexico are still unbanked, the report said, a sign that cash likely will remain a dominant payment method in the country even as digital-first payment options and services continue to grow.

To find out more about how payments are changing in Mexico and the rest of Latin America, download the latest Digitizing Payments In Latin America Playbook, a collaboration between PYMNTS and Kushki.