eCommerce Merchants Need Cash Acceptance at a Variety of Convenient Locations
Only 37 percent of Mexicans have a bank account. (Center for Global Development et al.) With ecommerce surging in popularity, partially due to the COVID-19 pandemic, the ability to use cash to pay for digital transactions is an important lifeline for many Mexican consumers. Oxxo Mexico Cash Payments remain a popular way for people without bank accounts to buy goods and settle bills. But the Oxxo payment method may not be right for everyone.
What Are Oxxo Payments?
Oxxo is a Mexican convenience store chain that issues and accepts cash voucher payments for digital transactions. Online shoppers can make purchases from merchants that accept Oxxo payments, then complete the purchase by printing out an Oxxo voucher and taking it to one of Oxxo’s physical locations to complete the transaction using cash.
Alternatives to Oxxo for Accepting Cash Payments for Digital Transactions in Mexico
There are other ways to accept cash for digital transactions in Mexico. For businesses looking to compete on convenience, Rapyd’s network of over 150,000 cash-over-the-counter locations including 7-11 and Walmart, offers an alternative or complement to the Oxxo Mexico Payment Method.
Whether at Walmart, 7-Eleven, Circle K, Extra, or Farmacias Benavides, shoppers can complete cash purchases for digital orders, by bringing printed vouchers or scanning QR codes. For merchants, this means your customers can now pay for online purchases and run regular errands in one place, whether they are at a drugstore, convenience store, or large retail department store.
At a time when people everywhere are being asked to limit their movement, offering more cash acceptance locations is a win-win for consumers and merchants alike.
Rapyd’s cash acceptance network is part of Rapyd’s all-in-one solution for payments in Mexico, which also enables merchants to accept popular payment methods like local and international cards and bank transfers through a single integration.
The eCommerce Opportunity in Mexico
Among its population of 126 million, consumers are showing growing comfort with cross-border shopping. Mexico is one of several Latin American nations rich with opportunities for international retailers, and online marketplaces.
Mexico’s eCommerce revenue is expected to grow at a compound annual rate of 6.5 percent over the next several years, resulting in US$21.8 billion in sales by 2024.
How Mexican Consumer Habits Have Changed in 2020
While cash remains important for merchants, digital payment methods are quickly gaining in importance with an online shopping growth rate near 30 percent. (J.P. Morgan) Selling online in Latin America is changing, since the beginning of the COVID-19 pandemic. Mexican consumers have begun moving to digital payments more quickly.
McKinsey and Company research shows:
- Shoppers are noticing companies that invest in new ways to shop online.
- 60 percent growth in consumers making more of their purchases online since the pandemic
- 100 percent growth in consumers who purchase most of their products online
For now, cash remains king -— even if the pandemic has shown that merchants need to augment it with other payment options. Mexico’s shift to online shopping is likely here to stay but cash will remain central to daily life for years to come.
Manage Payments in Mexico Like a Local
Rapyd has partnered with Mexican payment providers such as Banregio, RedEfectiva and Cacao Paycard to give businesses a single payment solution to accept popular local payment methods in Mexico. This enables merchants to accept cash as well as other payment methods, such as bank transfers and local debit and credit cards.
Center for Global Development, et al. “The Puzzle of Financial Inclusion in Mexico: A Closeable Gap?” www.cgdev.org, 14 January 2020, https://www.cgdev.org/publication/puzzle-financial-inclusion-mexico-closeable-gap.
J.P. Morgan. “2019 J.P. MORGAN GLOBAL PAYMENT TRENDS E-commerce Payments Trends: Mexico.” jpmorgan.com, 2019, https://www.jpmorgan.com/merchant-services/insights/reports/mexico.
McKinsey and Company. “Survey: Mexican consumer sentiment during the coronavirus crisis.” McKinsey.com, 29 October 2020, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-mexican-consumer-sentiment-during-the-coronavirus-crisis.
Oxxo convenience store photo by CIROJLEO – Own work, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=3919562