Mexico’s e-commerce and digital payments growth era: A strategic opportunity for global merchants

Mexico’s e-commerce market is growing at an impressive pace, nearly doubling in value since 2019. With more consumers shopping online, increasing cross-border purchases, and evolving payment preferences, the opportunities for global merchants are bigger than ever. However, success in this market requires more than just offering products. It demands a localized approach to payments, regulatory compliance, and consumer engagement. 

In this article, we explore the key trends shaping Mexico’s e-commerce landscape and the strategic steps merchants can take to optimize their expansion efforts.

• The state of Mexico’s e-commerce landscape
• Payment trends in Mexican e-commerce
  • Mobile wallets and alternative payment methods are on the rise
  • The enduring role of cash-based payments
  • Regulatory push for financial inclusion in Mexico
• How PPRO helps global merchants optimize their payments strategies for expanding into Mexico’s e-commerce market

The state of Mexico’s e-commerce landscape

Mexico’s e-commerce market is projected to reach a staggering $176.8 billion by 2026, with mobile commerce leading the way, accounting for nearly 80% of online sales.

As digital shopping rises, consumer behaviour is also evolving. Recent research from the Asociación Mexicana de Venta Online (AMVO) has identified the following four key online consumer trends shaping the market:

• Omnichannel shopping is the norm – 85% of Mexican consumers blend online and in-store experiences when making purchases.
• Frequent online buyers – 4 in 10 shoppers make digital purchases at least once a week.
• Cross-border shopping – Nearly 80% of Mexican online consumers have purchased from international retailers.
• Young adults drive e-commerce growth – The majority of online shoppers in Mexico are between 25 and 34 years old.

Meanwhile, e-commerce platforms continue to attract millions of shoppers, with major marketplaces dominating the space. As per Semrush’s February 2025 data, Amazon is leading the market with over 121 million monthly website visits, followed by Mercado Libre (99+ million), AliExpress (38+ million), Walmart (30+ million), and Liverpool (26+ million). These platforms have built consumer trust through wide product selection and convenient delivery options, making them the preferred shopping channels for many Mexicans. International entrants like Shein and Temu are also rapidly gaining traction in the market.

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Payment trends in Mexican e-commerce

The advancement of local digital payments, powered by fintech innovations, has significantly contributed to Mexico’s hyper e-commerce growth, alongside shifting consumer behaviors. While cash is still “the king”, digital payment adoption is accelerating, offering consumers greater flexibility and security.

Mobile wallets and alternative payment methods are on the rise

The widespread use of smartphones and improved internet connectivity have paved the way for digital wallets and fintech payment apps. Consumers are increasingly embracing e-wallets for their convenience, rewards, and security. The Mexican payments market (including digital transactions) is forecasted to grow from ~$103 billion in 2023 to $168 billion by 2028 (a 10% CAGR). Below, we look at some of the key factors and players fueling this growth:

• Mercado Pago & other local players: Mercado Pago, the digital wallet from Mercado Libre, has over 120 million users across Latin America. In Mexico, it has expanded aggressively, including issuing its own credit cards and applying for a regional banking license in September 2024. Domestic fintech players are also making financial services more accessible. For example, Spin by Oxxo, a wallet launched by OXXO convenience stores, reached over 13+ million users in 2024 and processed an average of 63.2 million monthly transactions, making it one of Mexico’s fastest-growing financial apps.
• Global wallets (PayPal, Apple Pay): PayPal remains a leading online payment option due to its buyer protection and seamless bank account integration. Apple Pay and Google Wallet, though newer, are gaining traction as banks and retailers increasingly support contactless payments.
• Buy Now, Pay Later (BNPL): Installment payments have long been popular in Mexico. BNPL services, such as Kueski Pay, Aplazo, and Mercado Crédito, are now expanding access to those without credit cards. According to recent data from Research and Markets, the BNPL payment market in Mexico is expected to grow by 33.5% annually, reaching $6.09 billion in 2025. Between 2021 and 2024, the sector experienced a CAGR of 54.5%, highlighting its rapid expansion. This strong momentum is projected to continue, with the BNPL market forecasted to grow at a CAGR of 24.9% from 2025 to 2030. By 2030, the BNPL market is expected to expand from its 2024 value of $4.56 billion to approximately $18.51 billion. This growth reflects increasing adoption among younger consumers, particularly for fashion and electronics purchases.
• Real-time bank transfers (SPEI): Mexico’s real-time interbank transfer system (SPEI) is being used more frequently for e-commerce transactions. Six in ten Mexicans now use SPEI for sending money, and the system processes over 3 million transactions per day. While not yet a dominant e-commerce payment method, real-time bank transfers are an emerging alternative for customers with bank accounts but no credit cards.

The enduring role of cash-based payments

Despite the increasing digital adoption, cash remains the cornerstone of Mexican commerce, with leading local methods bridging the gap between online and offline transactions.

• OXXO Pay and convenience store vouchers: The local retail chain OXXO, with 22,000+ locations, enables cash-based e-commerce transactions. Shoppers receive a numeric voucher code at checkout and pay in cash at an OXXO store, triggering order fulfillment. OXXO Pay accounts for nearly 50% of all cash-based voucher transactions in Mexico’s digital commerce.
• Cash on delivery (COD): While declining, COD remains popular in food delivery and select e-commerce segments. Amazon and Uber Eats allow cash payments upon delivery, helping build trust with first-time online shoppers.
• Local cards (debit and credit): Cards remain the largest payment method for online shopping, with over 70% of transactions made using locally issued debit or credit cards. Since credit card penetration is low (~10-15% of adults), ensuring payment processing for Mexican debit cards is crucial. Mexico’s card payments market reached $157 billion in 2023 and is projected to grow at ~13% annually through 2027.

Regulatory push for financial inclusion in Mexico

A series of regulatory reforms have also been instrumental in driving digitalisation in payments and financial inclusion in Mexico. Key developments include:

• Open Banking progression: Mexico’s 2018 Fintech Law created a regulatory framework for electronic payment institutions and open banking, encouraging banks to provide API access to fintechs. In 2024, the National Banking and Securities Commission (CNBV) introduced new regulations to further enhance this framework. However, adoption has been slow due to the lack of mandatory enforcement and ongoing technological and regulatory challenges in building a more inclusive financial ecosystem.
• DiMo adoption: Banxico has launched initiatives to drive cashless transactions, including CoDi (2019) for QR code payments via SPEI and DiMo (2023) for instant phone number-based transfers. CoDi adoption has been slow, with just 1.9 million users and under $1 billion in transactions over four years. In contrast, DiMo surpassed 7 million users in its first year, with strong backing from BBVA and Santander. Banxico projects A2A transfers via DiMo could grow from 6% to 8% of online transactions by 2027, depending on fintech and industry adoption.
• E-commerce taxation & import compliance: ​As of January 1, 2025, Mexico mandates that foreign e-commerce businesses, including digital service providers, register for and remit a 16% Value Added Tax (VAT) on sales to Mexican consumers. This aligns with the standard VAT rate applied to most goods and services within the country. Digital platforms facilitating sales for non-resident sellers are required to withhold 100% of the VAT due on such transactions, ensuring compliance and simplifying the tax process for foreign merchants. These measures aim to level the playing field between domestic and international sellers, ensuring equitable tax obligations across the board.​

How PPRO helps global merchants optimize their payments strategies for expanding into Mexico’s e-commerce market

To succeed in Mexico’s fast-growing e-commerce market, foreign merchants should adopt localized payment strategies. PPRO enables seamless access to key payment methods, improving approval rates, reducing drop-offs, and ensuring compliance with evolving regulations.

3 ways PPRO helps foreign merchants thrive in Mexico

1. Expand payment accessibility – Go beyond cards by integrating SPEI bank transfers for digital payments and OXXO Pay for cash-based transactions, capturing a broader consumer base.
2. Boost approval rates – Leverage local acquiring to optimize acceptance of Visa, Mastercard, AMEX, and Carnet, minimizing cross-border declines.
3. Ensure regulatory compliance – Stay ahead of Mexico’s 2025 VAT and import rules with PPRO’s VAT-compliant payment processing and structured cash transaction support.

Get in touch with our team to learn more about how PPRO can help your business.