Payment methods, the great challenge for e-commerce in Mexico

The moment that Mexico is going through leads us to think about growth during the following years with the participation of companies, startups, and government.

Mexico leads the Top 10 of the countries that have registered the highest growth in the retail e-commerce sector worldwide, even above markets such as India, the Philippines or China, says the Mexican Association of Online Sales ( AMVO ).

Image result for e-commerce in Mexico

And although this dynamic of growth will continue, there are still challenges for our country to be spearheading in the adoption of new technological tools, especially when we talk about payment methods, as indicated to Forbes Mexico, Eric Pérez-Grovas, who presides over the AMVO.

“While we have been evolving, we still face an important challenge in the area of ​​payment methods. Cash is still a predominant form in the country and paying in cash is not the ideal way, fortunately, this is changing. Mainly for debit cards, nowadays more and more shops allow you to pay with debit cards. However, we are also finding new ways to make electronic purchases, even by unconventional players, ”says Pérez-Grovas.

 

This makes sense when we see that beyond conventional debit cards, new players have reached the market to feed the payment ecosystem in Mexico. For example, the manager details that without a doubt, big bets are what businesses and companies like Oxxo , Walmart or Facebook itself are doing .

“However we see that there are advances and the entry of new participants. For example, the case of Oxxo with its Oxxo Pay through Conecta or Walmart with its Cashi strategy and I would not be surprised if in the short term we see Facebook bringing what it is doing in India, with a payment method like WhatsApp. And specifically what is happening with CoDi (payment method through QR), ”says Pérez-Grovas.

On how this conversion is being carried out, the AMVO representative says that it has not only been the work of society but that both companies, startups and the government itself have worked so that this transition can take place.

“It is being supported by very large investments by very large players, that is, both Walmart and Mercado Libre, like Amazon, all are investing in the order of hundreds of millions of dollars and all this is ultimately reflected in the consumer has an extraordinary offer, ”he says.

Another of the factors that are contributing to the growth of electronic commerce in Mexico, is undoubtedly the arrival of figures such as the Brazilian Nubank or startups such as Albo.

He says that with his entry, what is happening is that it is expanding the offer of services and products with what the only beneficiary is being the consumer.

“Something that also excites me is that right now in Mexico, we are seeing startups that are also helping for this, two come to mind: NuBank, this Brazilian fintech that came to Mexico and that is surely going to offer a very product interesting for Mexicans, but we also have companies like Albo that are developing interesting products, ”he says.

4T in electronic commerce

With the arrival of the government of Andrés Manuel López Obrador, the issue of electronic commerce, says Pérez-Grovas, has been favored and supported by various instances, including the Ministry of Finance and the Ministry of Economy.

“We are excited that the federal government and various of its dependencies, such as Economy or Finance, have asked us to help them serve as a link to understand these experiences. What we have seen is that as AMVO , facilitating bringing experiences from other countries and bringing them closer to this government is an important opening. We are optimistic because if I see the federal government with an interest in achieving greater insight into payment methods, ”says the director.

Source: forbes mx

The Mazatlan Post