Over 75% of Mexicans are underbanked
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Cash is by far the preferred payment method in Mexico where over three-quarters of the population are underbanked and where only 14% have their incomes deposited directly into their accounts. Indeed, 90% of Mexicans admit choosing cashMoney in physical form such as banknotes and coins. More over alternative payments when making purchases.
Even e-commerce giants such as Amazon and Walmart have recognized the benefits of accepting cash. In fact, Amazon launched Amazon Cash where consumers can charge their online account from any convenience store. Similarly, Walmart offers its customers the possibility to settle their online purchases in cash directly at their store. Latin American e-commerce platforms have followed suit where Linio Mexico and Mercado Pago have now adopted a cash payments system. “In the end, what we are doing here is to include more people”, says Christian Leon of Mercado Pago for Global Cash Index, “we are trying to democratize e-commerce, and for that it’s important to offer cash payments”.
Mexicans’ preference for cash goes beyond the banked or unbanked factor: it’s also greatly driven by a generalized association of theft and fraud to cards and online purchases. Cash is therefore expected to remain at the top of the charts in the country of mariachis and sombreros.
To download the full Global Cash Index by PYMNTS.com and Cardtronics, click here.
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