{"id":2293,"date":"2026-05-09T05:15:56","date_gmt":"2026-05-09T05:15:56","guid":{"rendered":"https:\/\/gw.adampg777.com\/?p=2293"},"modified":"2026-05-09T05:15:56","modified_gmt":"2026-05-09T05:15:56","slug":"mexicos-banks-handed-out-millions-of-cards-that-nobody-wants","status":"publish","type":"post","link":"https:\/\/gw.adampg777.com\/?p=2293","title":{"rendered":"Mexico\u2019s banks handed out millions of cards that nobody wants"},"content":{"rendered":"

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When Uber launched in Mexico 13 years ago, it ran into an unexpected problem. Plenty of people had smartphones to download the app, but few would pay with a bank card: they either didn\u2019t have one or didn\u2019t want to use it.<\/p>\n

Within a few years, the ride-hailing giant rolled out a cash option, and that\u2019s still how more than half of its riders in the country pay.<\/p>\n

That statistic reflects a broader pattern: in Mexico, a surge in the variety of financial products on offer has been met with a stubborn reliance on banknotes and coins. In many ways, digitally enabled convenience has been no match for culturally ingrained attitudes about money and a high tax-evasion rate, especially outside of big cities.<\/p>\n

Read: Legal troubles, market realities threaten Uber\u2019s global push<\/p>\n

On paper, the country is one of Latin America\u2019s fastest-growing fintech markets, with more than 800 such companies operating there, up from fewer than 200 a decade ago.<\/p>\n

Electronic payments have grown at double-digit rates as hundreds of millions in venture capital poured in, and roughly eight in 10 Mexicans now have at least one financial product, according to government data.<\/p>\n

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The Uber app allows cash payment in Mexico. Image: C\u00e9sar Rodriguez\/Bloomberg<\/p>\n<\/div>\n

And yet, more than half of debit cards in the country are untouched and nearly half of credit cards go unused, the data show. That\u2019s partly because banks and fintech companies push them onto clients who use their other services, an issue so prevalent that Mexico\u2019s lower house passed a bill last year banning fees on those unsolicited items.<\/p>\n

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Cash continues to dominate daily life: it\u2019s used for about 85% of small purchases, according to government data.<\/p>\n<\/blockquote>\n

Take Roberto Negrete, a 33-year-old construction consultant based in the State of Mexico. He manages almost all of his money in cash, a habit he inherited from his father.<\/p>\n

When he gets paid, Negrete heads to Banamex, where he has a checking account. But instead of depositing the money, he trades his check for bills and stores them in a safe at home. He uses his bank account sparingly \u2013 mainly for expenses like Netflix or Apple Music that require electronic payment.<\/p>\n

\u201cI still prefer to handle everything in cash because it\u2019s simpler and easier than having to declare my income, which would be tedious\u201d and \u201cconfusing,\u201d he said. \u201cI don\u2019t like depending on a financial institution to hold my money. I prefer to do things with my own hands.\u201d<\/p>\n

Read:
Moving towards a cashless society
Uber now allows drivers to choose payment method
Why Uber\u2019s struggling to remain a tech company<\/p>\n

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Negrete, like many Mexicans, will make use of the financial system when necessary, but is reluctant to rely on it. At the center of this perspective is Mexico\u2019s large informal economy, in tandem with a lingering distrust in institutions seeded by a banking crisis decades ago.<\/p>\n

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Roberto Negrete manages almost all his money in cash. Image: Alejandra Rajal\/Bloomberg<\/p>\n<\/div>\n

Roughly 54% of the country\u2019s workforce operates outside the formal system, shaping how people earn, spend and store money. Cash offers anonymity, while digital payments leave a trail that can expose users to taxes.<\/p>\n

However, non-cash payments are getting more popular. In 2024, 19% of Mexicans preferred making purchases over 500 pesos (about $29) with a card, compared to about 12% six years prior, according to the central bank. Mobile or electronic payments were the go-to option for 7.6% of people, up from just 0.3% in 2018.<\/p>\n

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A sign reads in Spanish \u2018Your Credit Cards Are Welcome\u2019 outside a store in Tepic. Image: C\u00e9sar Rodriguez\/Bloomberg<\/p>\n<\/div>\n

\u201cThe most significant reason people do not go digital is the fear of tax scrutiny,\u201d Emilio Romano, head of industry group Asociaci\u00f3n de Bancos de M\u00e9xico, said in an interview. That\u2019s why many consumers prefer to pay in cash and many merchants prefer to receive it.<\/p>\n

\u201cCash is the vicious cycle that fuels everything from tax evasion to illicit activities,\u201d Romano said.<\/p>\n

Read: PayInc steps up push to move South Africa to digital payments<\/p>\n

The aversion to banks seems to get stronger the further one lives from a major urban centre. In Mexico City, a hub for fintech companies, about half of transactions are electronic, but cash still accounts for about 90% of payments in some southern regions, which tend to be poorer and more rural.<\/p>\n

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And Mexico stands out as a laggard when compared to Latin America as a whole. It\u2019s the second-biggest economy in the region, but just 63% of adults have a bank account, according to government data.<\/p>\n

In Brazil \u2013 Latin America\u2019s largest economy \u2013 more than 90% of adults use Pix, an instant-payment system developed in 2020 by the country\u2019s central bank that quickly became Brazil\u2019s main method of payment.<\/p>\n

While Mexico also has real-time payment systems, they coexist with older, slower networks, forcing businesses and financial institutions to navigate multiple channels to move money. Privately, many fintech companies say regulators have been slow to enact changes that would help drive adoption.<\/p>\n

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Read: Pix Gangs\u2019 cash in on Brazil\u2019s mobile payments boom<\/p>\n

Still, companies such as Nu Holdings Ltd, Banco Plata, Mercado Pago and Klar have managed to make headway after spending heavily in the market, adding millions of accounts across Mexico. Others have found the competition too stiff: last year, Grupo Financiero Banorte sold its money-losing digital bank to Klar.<\/p>\n

In March, Femsa, one of Mexico\u2019s largest retailers, cut hundreds of jobs at its fintech unit as it struggled to establish itself in a crowded market.<\/p>\n

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A sign reads in Spanish \u2018No Card Payments Accepted\u2019 at a store in Tepic. Image: C\u00e9sar Rodriguez\/Bloomberg<\/p>\n<\/div>\n

Tamara Caballero, CEO of Banco Multiva SA, said that heightened competition in the financial sector has pushed bigger, traditional lenders in Mexico to make strides on technology, including artificial intelligence, to retain its clients and attract new ones who may be reluctant to open a bank account.<\/p>\n

\u201cDigitisation is going to be the fundamental tool for achieving financial inclusion,\u201d she said. It\u2019s \u201cbetter to be within the banking system and access financial products than continuing to be marginalised\u201d.<\/p>\n

Troubled past<\/span><\/strong><\/p>\n

Distrust in Mexico\u2019s banking system is deeply rooted in peoples\u2019 memories of the financial crises of the 1980s and 1990s, when banks shifted from state ownership to inexperienced private hands. That led to the collapse of institutions, which required a massive bailout at taxpayers\u2019 expense.<\/p>\n

Skepticism toward banks hasn\u2019t fully faded since.<\/p>\n

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Government surveys show that only about six in 10 Mexicans believe financial institutions will safeguard their money and data, while barely more than half are confident their complaints will be resolved.<\/p>\n<\/blockquote>\n

Some people also fear digital transactions. Grupo Elektra and Grupo Coppel both run retailers with in-store banks, giving them an advantage over fintechs among the country\u2019s underbanked due to their thousands of locations across the nation.<\/p>\n

\u201cPeople trust the person, not the machine,\u201d said Rub\u00e9n Coppel, vice president of financial services at Grupo Coppel \u2013 which operates Mexico\u2019s biggest privately-held retailer \u2013 and chairman of BanCoppel, the company\u2019s banking arm.<\/p>\n

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Cost and complexity also play a role. Moving cash into the financial system can be cumbersome, requiring a fee of about 20 pesos ($1.15)\u00a0at convenience stores just to make a deposit. And for small businesses, accepting digital payments often comes with added expenses and logistical hurdles.<\/p>\n

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Mexico\u2019s large informal economy contributes to credit cards going unused. Image: C\u00e9sar Rodriguez\/Bloomberg<\/p>\n<\/div>\n

However, those outside the banking system miss out on potential returns on their savings. While traditional bank accounts in Mexico often offer little to no yield, some fintechs \u2013 in an effort to attract new customers \u2013 pay out interest ranging from roughly 8% to 15%. All the while, the value of unbanked and uninvested cash declines as prices rise.<\/p>\n

\u201cThere isn\u2019t that much resistance once the money is already in people\u2019s accounts,\u201d said Carlos L\u00f3pez-Moctezuma, CEO of BanCoppel. \u201cThe big problem is that money is born in cash for millions of Mexicans, and digitising it comes with a cost.\u201d<\/p>\n

Mobile-friendly companies struggle to convert the unbanked. While 63% of fintech firms say they serve underbanked users, only about a quarter report reaching people who were previously outside the financial system entirely, according to a survey by the Mexican Fintech Association.<\/p>\n

But the consequences aren\u2019t just personal, according to Romano, the head of Mexico\u2019s banking association.<\/p>\n

Read:
Investec eyes low-value payments market
We\u2019re moving into the age of decentralised money<\/p>\n

\u201cFormalising the economy enables economic growth,\u201d he said. \u201cAn entrepreneur operating informally is an entrepreneur who cannot grow, because they must physically collect cash, cannot open branches, cannot establish a credit history.\u201d<\/p>\n

Industry leaders and policymakers are working to change this dynamic. Fintech firms are trying to lower user fees and make their products more seamless, while Romano said banks and the government are seeking to increase lending to around 45% of gross domestic product by 2030 from about 38% currently.<\/p>\n

In April, Mexican President Claudia Sheinbaum announced an agreement to reduce fees on card payments at gas stations, her government\u2019s latest push to reduce reliance on cash.<\/p>\n

Negrete, the construction consultant, sees the writing on the wall.<\/p>\n

\u201cSomeday I will go digital,\u201d he said. \u201cNot because I want to, but because I\u2019m going to have to.\u201d<\/p>\n

\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n

#Mexicos #banks #handed #millions #cards<\/p>\n","protected":false},"excerpt":{"rendered":"

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