In Mexico, Cash Payments Are Preferred

In Mexico, more than 44 percent of the adult population prefers cash as their primary payment method, despite advances in the adoption of digital payments, according to the Fintech Mexico 2024 Annual Report by NTT DATA.

This is despite the fact that the adoption of digital payments has played a key role in the financial inclusion of more than 40 percent of the Mexican population.

The study revealed that low financial inclusion continues to be one of the main challenges in emerging countries like Mexico, and the lack of digitization in payments has repercussions in various areas, including the economic, security, and social sectors.

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The report identified two main factors that influence payment methods: first, the increased use of cash is related to age and Socioeconomic Level (SEL).

Second, the types of businesses where this population uses cash most frequently are linked to the informal sector, independent workers, and micro-entrepreneurs.

The study noted that, regarding the population that predominantly uses cash, 61 percent belong to SEL D+/D (level D is considered extreme poverty with incomes between 4,000 and 9,000 pesos, and D+ is typical low income, with incomes between 9,000 and 18,000 pesos).

In contrast, for digital payments (transfers, physical, and digital cards), the trend is reversed, as 25 to 46 percent of the AB/C+ population (level AB is high purchasing power with incomes above 100,000 pesos, and level C+ is upper-middle class with incomes between 45,000 and 85,000 pesos) prefer these methods compared to 20 to 37 percent of the D+/D population.

Additionally, when analyzing the age distribution of the population that frequently uses cash, the highest rates are found among people aged 18 to 24, with 26 percent, and among those aged 25 to 34, with 25 percent.

Contenido publicado originalmente en El Heraldo de México