Mexico Digital Wallet Market - Forecasts from 2023 to 2028

Mexico’s digital wallet market was valued at US$1.322 billion in 2020.

Owing to advancements in technologies and urbanization, people around the globe are moving toward the digital era, wherein they prefer doing activities at their convenience. However, the internet has played a major role in providing ease and convenience. Internet consumption is growing in all regions. For instance, in 2020, internet consumption in Mexico was 72%, the figures grew from 44% in 2014 and 95% of individuals have a mobile cellular subscription. Moreover, in a population of 130 million as per the World Bank, 82 million own a smartphone.

Consumer behavior was positively impacted by the COVID-19 pandemic, which sped up the shift from conventional in-store shopping to online shopping and pick-up in-store, to the point where businesses implemented safer contactless payment services in response to customer demand for such possibilities. Additionally, digital wallets also solve the security issue of individuals as they have multiple layers of security for digital wallet transactions, and each transaction is protected by the debit/credit card company, app, retail outlet, and the bank that has issued the card.

Increasing initiatives toward cashless and digital payments

Since the digitalization of payment provides convenience and security, the transition toward it seems to be a sound decision. Owing to its success in other countries, the Mexican government is taking up initiatives to promote digital payment methods. For instance, in January 2021, the central bank director announced that they are focusing to invite more people to the banking institution of the country as the initial steps so that later on they can generate a sound digital payment system, where payment methods such as digital wallet can be used to generate or request money.

Key Developments

Furthermore, along with the government, the market players are also expanding their horizons through investments, partnerships, and product launches. For instance,

• In July 2022, Google announced the launch of Google Wallet in Mexico. Through the wallet, the audience will be able to make payments for their products safely and securely without any hassle. Google Wallet will be accepted at all establishments that allow near-field communication (NFC) payments. Along with that, the Wallet will allow people to link their COVID-19 certificates or plane tickets.
• In September 2022, a fintech technology company, Inswitch, formed an alliance with MasterCard to design and deliver digital payment solutions in selected countries across LAC, Mexico being one among them. Through this collaboration, the alliance would extend its value proposition by offering digital and physical MasterCard branded cards for various applications across broad industries. The branded cards will allow payment through digital wallets, and buy now pay later modules, among other use cases.
• In March 2019, BlocPal International Inc. and Tortooga announced their strategic partnership to develop and release a digital wallet in Mexico. The digital wallet was named as Tortooga digital wallet. The partnership aims to offer its 40 thousand merchant partners and 50 million users a suite of digital financial services.

Market Restraints

However, though many market players are moving ahead with their investment plans, one major hindrance the market is facing is the high percentage of individuals who do not own a bank account. According to World Bank data, only 38.33% of the population above the age of 25 had account ownership at a financial institution or with a mobile money service provider in 2017. Such figures state that the Mexican population still uses cash as their trustworthy payment method.

Segmentation

By Device

• PC/Laptops
• Smartphones

By Application

• Money Transfer
• Recharge
• Movie Booking
• Food Ordering
• Others