Cashless services in Mexico
The forms of payment have changed, probably many years ago the most common way of paying in exchange for an object, a food, or a service, was by means of salt, hence the word “salary”. But today, in 2021, salt is only used at the table. At present, technology has reached us and the idea of a life without technology is complicated, since it has made our existence so much easier that it even influences our economic life.
Great tools have emerged over the years, debit cards, credit cards, electronic platforms, ATMs, but have you heard of the cashless service?
What is cashless service?
If you do not know what cashless service is, it is a payment alternative, which, as its name indicates, does not use cash, so, among its advantages, is the quick and easy way of handling, without leaving aside from the fact that, when not carrying physical money or having to pass cards, it also becomes a safer alternative for all its users.
How it works?
Its way of operating is through a cell phone and a terminal, where your cell phone works as a kind of “credit card” and when you bring it a few centimeters to the point-of-sale terminal, it can charge through NFC technology (Near Field Communication) that allows successful transactions.
Google Pay
In Mexico about 3 years ago this service came from Google, under the name of Google Pay, but only available for Android users, which allowed you to link credit cards, and, in addition, other payment alternatives such as Paypal or Visa Checkout.
Paypal
Although Paypal does not have the NFC function by itself, partnering with Google Pay was a great strategy, since it allows more users to enjoy both platforms. However, in 2018 a new law emerged in Mexico, called the “Fintech Law” used to regulate financial technology institutions. In other words, platforms such as Paypal, were forced to send the income of the users, to the Tax Administration System, a government institution that is responsible for individuals and legal entities to contribute what corresponds to tax and customs provisions. Although this did not influence Paypal’s relationship with Google Pay, it did cause great dissatisfaction among Mexican users who used this means of payment in their businesses and several of them even chose to abandon this platform, this is due to the high taxes that often prevent small entrepreneurs from prospering in their business.
Cash in Mexico
Currently in Mexico, the most used is still the payment in cash, according to the newspaper “El Universal” it is revealed that about 80% of Mexicans pay with cash, this is also a consequence of the fact that, in many isolated areas, there is no access to a bank or ATM. Consequently, the cashless service may still be something too new for many Mexicans and its use will probably become much more frequent with the passage of time.
Apple Pay
Apple pay recently arrived in Mexico, despite the fact that this service was launched at the end of 2014 and was only available for the most current devices; Almost 7 years later, Mexico can say that it finally has access to this service. All Mexican Apple users who have compatible devices (iPhone 6 onwards), if they have compatible cards (Citibanamex, Banorte, American Express, etc.) will be compatible to access the long-awaited service.
Cashless service not very popular
Although it was previously mentioned that many Mexicans use credit cards, and, therefore, the use of the Cashless service is not very popular; A large part of Mexican Apple users are very excited about this news, which is causing a reaction in users of other companies, such as Google or Samsung, who had no idea what this service covered, nor did they know that the requirements to access this, they are quite simple.
The arrival of Apple Pay to Mexico will not only bring benefits for Mexicans who have devices from this company, but it will spread the word and force other brands to enable this function for all their users.
Other cashless services
Samsung Pay
Currently there are several companies that have been concerned with optimizing the way of paying today, one of them is Samsung Pay, which has been available in Mexico since 2018, which has partnered with various banks such as: Banorte, BanRegio, Citibanamex, HSBC, Santander and Scotiabank; and that, in addition, with commercial establishments of great boom within the country, such as: Coppel, Seven Eleven, Soriana, Sears, Cinepolis, Chedraui, Sanborns, and others.
BBVA Wallet
Another alternative is the BBVA Wallet, belonging to the well-known Banco Bilbao Vizcaya Argentaria (BBVA), among its advantages is that it does not matter the operating system with which your device communicates, as it is available for both Android and IOS, however, it is exclusive for people with a bank account in the aforementioned bank. Its advantages are not very different from the previous options, as we find ourselves once again with one of the safest forms of payment in the world, without the need to expose your data, and which, in addition, is easy and fast.
Conclusions
Technology is here to stay; it is important to give it a try and make the most of it. Mexicans will not leave all their money in cash to put it in an electronic card from one day to the next, it is a whole process and although the technology may be too imposing and cause some fear to access it, the benefits will be more if they know how to use it.
Mexico has a fairly traditional culture, so Mexicans like to maintain their customs and traditions, however, that does not mean that they are closed to change or evolution. Possibly the cashless service still lacks time to have its boom in Mexico, perhaps many people do not have the possibilities of accessing this new service, however, baby steps, it is necessary to introduce these new tools little by little and encourage citizens to use them. Cash is not bad, but turning to the new possibilities that new technologies offer can help to make better use of the income, as well as it can allow to give them a much more optimal care.
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