Mexico Digital Wallet Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Device (PC/Laptops, Smartphones), And By Application (Money Transfer, Recharge, Movie Booking, Food Ordering, Others), By Technology, Near Field Communication, QR CODE, Text Based/ Short Message Service, Digital Only), And By Region - Forecasts From 2023 To 2028

The Mexican digital wallet market is expected to grow at a CAGR of 14.33% from an initial value of US$2.010 billion in 2021 to US$5.134 billion in 2028.

A digital or electronic wallet is referred to as an internet or electronic-based payment system that stores both financial values as well as personal identity-related information in a mobile or computer. This enhances a person's ability to conduct electronic transactions and buy goods from an online retailer using a computer or smartphone. The ease of linking a consumer’s bank account to their digital wallet and the simultaneous linkage of a person's driver's license, loyalty card, or other phone-stored ID documents is increasing the consumption of digital wallets. These digital wallets are increasingly utilized for various purposes other than simple money transactions such as the software- and information-based validation of the holder's credentials. Digital payment services are witnessing increasing demand worldwide and the trend is expected to maintain momentum, and the country is no exception. International retailers have an advantage due to Mexico's high internet penetration rate. To give an idea, according to EBNAX, one of Mexico’s digital wallet providers, 43% of the country’s e-commerce transactions were made through a mobile device in 2019. The success of Mexico's e-commerce business is dependent on the provision of a variety of payment options. Internet buyers, who are spending additional time on their smartphones can be increasingly attracted to a company’s brand through the usage of social media. Additionally, the Mexican e-commerce market is anticipated to grow at an enormous rate through 2021 due to large amounts of cross-border expenditure, which is anticipated to hasten the adoption of digital technologies wallets in the country.

The Mexican digital wallet market is driven by the growth of e-commerce and social commerce.

The Mexican digital wallet market is set to note substantial growth in the years ahead, backed by factors like the increasing popularity of e-commerce and social commerce in the country. Mexico's total retail market contributes only a small portion of the country's e-commerce sector. Nevertheless, since 2017, e-commerce has consistently produced substantial sales growth which is anticipated to keep developing despite challenges brought on by COVID-19's economic pressures.

Furthermore, the majority of the Mexican citizens, approximately 74% of the people who never purchased through online mediums, performed online purchasing activity as a result of the pandemic. The most significant percentage of new customers in the first half of 2020 originated from food delivery services and the fashion industry, whereas the usage of online banking and bill payment services increased nationwide. Amazon, the next-most prominent website, witnessed monthly visits number of approximately 41.3 million. As the second-wealthiest nation in Latin America, Mexico is becoming a target for international firms willing to expand their global footprint and stake a claim in the burgeoning Mexican e-commerce space

Key Developments.

• Chinese giant Alibaba is one such example. The company is investing in establishing ‘digital villages’ in all 32 Mexican states in an attempt to drive online spending. It is also collaborating with local businesses to train thousands of Mexican university students in e-commerce skills and intends to launch 50 micro-businesses in each state.
• Mercado Libre, an Argentinian company offering e-commerce solutions declared the extension of its physical and technological functional facilities in Mexico, Meta Platforms, Inc. introduced the ‘Shops’ feature to the Facebook application available in Mexico.
• Non-profit organization - the Stellar Development Foundation (SDF) invested $15 million in Mexican digital payments company Airtm, a blockchain, and bank-connected digital wallet provider, in May 2021 to facilitate cross-border banking access.

Based on devices, the Mexican digital wallet market is expected to witness positive growth through smartphones.

Digital wallets have witnessed significant growth in demand worldwide and Mexico is no exception. The growth in the country can be attributed to the growing internet connectivity among the population and advancements in technology. Technological advancements especially in the smartphone segment have augmented the digital wallet adoption in the country. According to a US Department of Commerce report, Mobile eCommerce is growing exponentially in Mexico and is estimated that a total of 60% of online transactions are completed through mobile devices. Furthermore, an increasing number of consumers are widely accessing their social media through their smartphones and the growth of mobile transactions has been driven by the popularity of such ridesharing networks. Moreover, digital wallets employed through smartphones provide numerous benefits to users including comfort, time-saving, better expense tracking, enhanced security, and lower costs among others.

Based on application, the Mexican digital wallet market is expected to witness positive growth in the money transfer segment.

The growth of money transfers in the market can be attributed to the macroeconomic parameters of rising population, rapid urbanization, and rising smartphone and internet penetration. The population in the country has been steadily rising for the last two decades. As per the World Bank Database, the population increased from 123,333.38 thousand in 2016 to 127,575.53 thousand in 2019. Mexico's National Institute of Statistics, Geography, and Informatics reported that in 2019, the country had approximately 80.6 million people using the internet which contributes up to 70% of the country's total population, an increase of 4.3% in the number of internet users in 2018. These favorable macroeconomic parameters play an essential part in the growth of the money transfer digital wallet market in this emerging economy.

Mexico Digital Wallet Market Scope:

Key Market Segments

• By Device
  • PCs/Laptops
  • Smartphones
• By Application
  • Money Transfer
  • Recharge
  • Movie Booking
  • Food Ordering
  • Others 
• By Technology
  • Near field communication
  • QR CODE
  • Text based/ short message service
  • Digital Only
• By Region
  • Nuevo León
  • Coahuila
  • Federal District
  • Sonora
  • Baja California