Introduction
Mexico’s payment ecosystem is fast-evolving, driven by fintech innovation, government-backed initiatives, and changing consumer habits. Traditionally reliant on cash, debit/credit cards, and bank transfers, the market has shifted toward mobile wallets, QR payments, instant transfers, and Buy Now, Pay Later (BNPL) solutions.
The Mexican government and financial regulators have actively supported digital payment adoption, particularly through CoDi (Cobro Digital) and the push for QR code interoperability. This has created a hybrid ecosystem, combining bank-led wallets, fintech platforms, and government-backed rails.
This article explores Mexico’s APM landscape, including market size, consumer behaviour, key players, regulatory frameworks, challenges, and its broader impact on LATAM and global fintech.
1. Mexico’s Digital Payments Landscape: Market Foundations
Economic and Digital Infrastructure Context
- Population: ~126 million
- Internet penetration: ~72–75%
- Smartphone penetration: ~70%
- Bank account ownership: ~61% of adults (growing rapidly with fintech adoption)
- Urbanisation: ~80%
Mexico’s urban population, rising middle class, and mobile-first consumer behaviour create fertile conditions for rapid APM adoption, especially in retail, e-commerce, and remittances.
Payment Market Size and Growth
- Annual digital payment transaction value exceeds USD 150–170 billion
- Cash still accounts for 40–45% of transactions, but its share is declining
- Mobile wallets, QR payments, and instant transfers now represent 25–30% of non-cash transactions
- Government initiatives, e-commerce expansion, and fintech innovation are primary drivers
Mexico represents a large emerging APM market, combining urban fintech adoption with rural financial inclusion efforts.
2. Understanding Alternative Payment Methods (APMs) in Mexico
APMs in Mexico include:
- Mobile wallets and super-app payments
- QR code payments
- Account-to-account (A2A) transfers
- Prepaid cards and e-money
- BNPL / installment platforms
- Government-backed instant payment solutions (CoDi)
Mexico’s APM ecosystem is bank-integrated and fintech-driven, with strong regulatory oversight supporting innovation while protecting consumers.
3. APM Adoption Trends and Consumer Behaviour
E-commerce Payments
- APMs account for 30–35% of online transactions, including wallets, QR, and installment payments
- Cards remain dominant for high-value and international transactions
- BNPL solutions are gaining traction among Millennials and Gen Z
Offline & Retail Payments
- QR payments are increasingly accepted in supermarkets, convenience stores, gas stations, and small merchants
- Mobile wallets are expanding, particularly in urban centers
- Cash is still widely used in rural areas
Demographic Insights
- Urban Millennials & Gen Z: Mobile wallets, QR, BNPL
- Middle-aged urban consumers: Cards + bank-linked wallets
- Rural population: Gradual adoption of wallets and QR, cash still dominant
4. Key APM Categories and Leading Players in Mexico
1) Mobile Wallets & Super-App Payments
- Mercado Pago Mexico – Integrated with e-commerce giant Mercado Libre
- Clip Wallet – Bank-linked mobile wallet for SMEs and retail
- BBVA Wallet / Santander Wallet – Bank-led mobile wallets for urban consumers
2) QR Code Payment Systems
- CoDi (Cobro Digital) – Government-backed QR payment and instant transfer system
- Wallet QR codes – Mercado Pago QR, BBVA QR, Clip QR
- Adoption focuses on SMEs and micro-merchants
3) Account-to-Account (A2A) Transfers
- SPEI (Sistema de Pagos Electrónicos Interbancarios) – Real-time bank transfers
- Used heavily for bill payments, P2P transfers, and SME transactions
- Supported by fintech wallet integration
4) Prepaid & Stored-Value Solutions
- Prepaid cards for underbanked population, students, and retail micro-payments
- Often linked to digital wallets or payment apps
5) Buy Now, Pay Later (BNPL)
- Fintech providers: Kueski Pay, Klar, Albo BNPL
- Popular among online shoppers and urban Millennials
- Focused on lifestyle, gadgets, and e-commerce purchases
5. Regulatory and Policy Framework
- Banco de México (Banxico) regulates APMs, including CoDi, wallets, and e-money issuers
- Licensing required for e-money providers
- AML/KYC compliance is strictly enforced
- Open banking initiatives support interoperability between banks and fintechs
- Government promotes cashless adoption through CoDi and QR payments
6. Drivers Behind APM Growth in Mexico
- Government-backed initiatives: CoDi instant payments
- Fintech innovation: Mobile wallets, QR payments, BNPL
- E-commerce growth: Rapid online retail expansion
- SME digitisation: Adoption of QR and wallet payments for faster settlement
- Consumer convenience: Mobile-first, cashless, and instant transactions
Comprehensive List of Alternative Payment Methods (APMs) in Mexico
1️⃣ Bank-Led Wallets
- BBVA Wallet
- Santander Wallet
- Banorte Wallet
2️⃣ Non-Bank Wallets / Super-App Payments
- Mercado Pago Mexico
- Clip Wallet
- Albo Wallet
3️⃣ QR Payment Systems
- CoDi QR (government-backed)
- Mercado Pago QR
- Clip QR
- Bank QR codes
4️⃣ Account-to-Account Payments
- SPEI real-time transfers
- Bank mobile P2P transfers
5️⃣ BNPL & Installments
- Kueski Pay
- Klar
- Albo BNPL
APM Comparison Table
| APM Name | Type | Primary Use | Offline | Online |
| CoDi QR | QR Payment | Retail, P2P, instant payments | ✅ | ✅ |
| Mercado Pago | Mobile Wallet | Retail, e-commerce, P2P | ✅ | ✅ |
| Clip Wallet | Wallet & QR | SMEs, micro-retail | ✅ | ✅ |
| BBVA Wallet | Bank Wallet | P2P, retail, e-commerce | ✅ | ✅ |
| Kueski Pay | BNPL | E-commerce installments | ❌ | ✅ |
7. Challenges and Constraints
- Cash remains widely used, especially in rural areas
- Merchant adoption hurdles for QR and wallet payments
- BNPL is emerging and requires robust credit assessment
- Fintech competition is increasing rapidly
8. Mexico’s Impact on Regional Fintech and Payments
- CoDi provides a model for instant payments across LATAM
- Fintech wallets demonstrate successful urban financial inclusion
- BNPL and QR adoption are influencing regional fintech strategies
- Mexico’s fintech ecosystem attracts cross-border investment and innovation
9. Future Outlook and Projections
Over the next 3–5 years:
- Mobile wallets, QR payments, and CoDi expected to account for 45–50% of non-cash transactions
- BNPL adoption will expand with urban e-commerce growth
- Open banking and interbank QR interoperability will accelerate fintech integration
- Mexico will consolidate as a LATAM fintech hub alongside Brazil
Conclusion
Mexico’s APM ecosystem highlights how government-backed innovation, fintech entrepreneurship, and mobile-first adoption drive digital payments. Mobile wallets, QR codes, instant transfers, and BNPL solutions are reshaping retail, e-commerce, and SME payments, positioning Mexico as a key LATAM market for alternative payment methods.