Mexico is among the top five countries in the world in terms of eCommerce retail growth rate, with a predicted revenue of US$25,688.6 million by 2023. The Mexican eCommerce market has been growing at a rapid pace, with a growth rate of 18% in 2021. This growth is expected to continue, with projections estimating a 34% increase in the volume of the Mexican e-commerce market by the end of 2023. As a result, the e-commerce industry in Mexico has become increasingly competitive, with a growing number of online retailers and marketplaces entering the market.
Popular e-commerce platforms in Mexico include Amazon, Mercado Libre, and Walmart]. These platforms have become increasingly popular due to their user-friendly interfaces, competitive pricing, and wide range of products. Additionally, many Mexican consumers prefer to shop on mobile devices, with mobile commerce accounting for approximately 52% of all e-commerce sales in the country. This trend has led to the development of mobile-friendly e-commerce platforms and the integration of mobile payment options.
Consumer behavior and preferences in the Mexican e-commerce market have also evolved in recent years. Mexican consumers have become more comfortable with online shopping, with a growing number of individuals making purchases online. The most popular payment methods for e-commerce transactions in Mexico include credit cards, digital wallets, and buy now, pay later (BNPL) options. Additionally, Mexican consumers tend to purchase a wide range of products online, with electronics, clothing, and household goods being among the most popular. As the e-commerce industry in Mexico continues to grow, it is likely that consumer behavior and preferences will continue to evolve, providing new opportunities for online retailers and payment processors.
Ecommerce payments in Mexico: challenges and opportunities
In Mexico, the most popular payment methods for e-commerce include credit cards, e-wallets, and debit cards. According to Rapyd research, Mexicans prefer to shop and pay using cash-based payment methods, such as Oxxo, a convenience store chain where customers can pay for online purchases in cash. MasterCard LOCAL, a local payment card, is also a popular payment method among Mexican consumers. As the e-commerce market in Mexico continues to grow, it is essential to understand the payment preferences of Mexican consumers to provide a seamless and secure payment experience.
One of the significant challenges in e-commerce payments in Mexico is the lack of trust among Mexican consumers regarding online shopping and payment security. Additionally, high bounce rates, where customers abandon their online shopping carts without completing the purchase, present a challenge for merchants operating in Mexico. Furthermore, many Mexicans do not have access to bank accounts or credit cards, limiting their ability to make online purchases. Addressing these challenges will require innovative solutions that build trust and provide accessible and secure payment options for Mexican consumers.
Despite the challenges, there are significant opportunities for innovation and growth in e-commerce payments in Mexico. The market share of real-time payments in overall transactions is on an upward trajectory, and there is a growing demand for local payment methods. With the country's rapidly growing digital commerce landscape, there is an opportunity to introduce technology that fosters financial inclusion. As the e-commerce market value in Mexico is expected to reach USD 70.4 billion by 2027, it is essential to embrace digital opportunities and provide accessible and secure payment options to Mexican consumers.
