header icon
Solutions
header icon
Products
header icon
Platform
header icon
Developers
header icon
Company
English
English
WHAT’S THE FUTURE OF CASH USE IN MEXICO?

What’s the Future of Cash Use in Mexico?

October 5, 2020

Don’t be fooled by conflicting reports. Important change is happening!

Don’t be fooled by conflicting reports. Important change is happening!

As the pandemic shuttered shops across Mexico and growing numbers of consumers turned to e-commerce, we saw reports of an estimated 40 percent annual increase in online sales, signaling that the coronavirus pandemic was indeed accelerating and strengthening electronic commerce in the country that already had the highest growth in this activity in the world.

Yet, in May the Bank of Mexico revealed that consumers used more cash than ever, as demand for banknotes and coins grew by more than 21 billion pesos.

How could these two seemingly contradictory trends both be true?

Acceleration and digital adoption are real

Yes, consumers find cash reassuring and a reliable form of payments in a crisis, but don’t be fooled. These reports and anecdotal evidence indicate that real traction is occurring.

Market adoption for digital payments is accelerating and pushing people to overcome their deeply integrated relationship with cash at even a cultural level. This huge change is slow-moving but has picked up drastically with the new demand due to COVID-19.

Further supporting this view, Mastercard reported that since the pandemic began, two-thirds of Latin American consumers say they are using less cash or none at all, and globally nearly seven in 10 consumers worldwide believe their shift to digital payments will likely be permanent.

Similarly, in places like Argentina, 73 percent of survey respondents asked to evaluate their new digital and online experiences said they were satisfied or very satisfied.

The prevalence of cash in everyday society is undeniable, but the change we're witnessing in recent weeks is every bit as concrete. Incremental, but definitely real.

Platform
April 18, 2024

Is Banking’s Future Composable? Here's What FIs Need to Know

To compete with digital-native fintechs, traditional financial institutions must move beyond a one-size-fits-all approach. Composable banking enables FIs to reimage their role and stay relevant in the industry’s digital future.

See More
Spotlight
April 17, 2024

How SoFi and Galileo Work Together to Help People Get Their Money Right

Explore the synergistic relationship between SoFi Technologies Inc. and Galileo Financial Technologies, as they join forces to redefine financial services. Learn how SoFi, with its comprehensive suite of financial tools, collaborates with Galileo's advanced payment processing and technology solutions to empower individuals to manage their finances effectively.

See More
Product
April 15, 2024

Why Banks Should Rethink Their Digital Wallet Strategy

Research shows digital wallets usage is booming, but banks risk losing out on this growth opportunity unless they adopt a more aggressive strategy to offer their own wallets.

See More
Spotlight
April 10, 2024

How WisdomTree Provides Financial Experiences by Integrating Investments and Payments

WisdomTree, in partnership with Galileo, is revolutionizing investing with digital assets and mobile fintech. Discover how they blend traditional finance with blockchain technology for a seamless saving, spending, and investing experience.

See More
Product
April 5, 2024

How Banks and Fintechs Can Beat Fraudsters in the AI Arms Race

Fraudsters are exploiting artificial intelligence, but AI-powered tools are giving banks and fintechs powerful new ways to fight back.

See More