Electronic means of payment are an alternative to cash payment and more and more businesses in Mexico choose to use them due to growing customer demand.
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If you already sell or are planning to sell, electronic payment methods are a fundamental issue that you must know and include in your strategy.
You probably already know a little about them, but in this article, we are going to make sure to answer some of the most common doubts about payment methods, and to clear up some confusion that often arises.
In the end, you will find some advice to take into account when choosing the ideal payment method for . Don’t you have it yet? In Tiendanube we give you , in which you can take the opportunity to test payment methods, personalized designs and more!
Shall we start?
What payment methods exist? 🤓
Over the years, the arrival of new technologies and the need to offer options to make purchases from anywhere in the world, the appearance of new payment methods has been inevitable.
Let’s do some memory. Decades ago it was impossible to think of various forms of payment. Everything was limited to cash. In the middle of 2022, everything has changed and now we find various means of payment, both for physical and digital businesses, for example:
- Credit card
- Debit
- Interbank transfer
- Credit payment applications
- Payment with the cell phone
- Payment at convenience stores
- Check
- Promissory notes
- Cash
- PayPal
Below we will tell you more details about the electronic payment methods available in Mexico and some curious facts about them.
Main means of electronic payment in Mexico ✔
Now join us to explore some of the most common means of payment in Mexico 💰.
- Credit or debit card
- Electronic transfer
- payment gateways
- Cash
- e-wallet
1. Credit or debit card
The Credit and debit cards are the payment method most used by online shoppers in Mexico, both to purchase products and services. By definition, they are plastics issued by banking institutions that allow financial operations to be carried out, either online or offline.
The credit card makes available to the cardholder a line of credit to pay for goods and services or to have cash with the obligation to pay, later, the amount used, plus interest and commissions generated.
On the other hand, the debit card puts at your disposal only the money that you have entered previously in your account.
2. Electronic transfer
An electronic transfer is a means or method of payment backed by financial institutions. As its name indicates, it consists of send money electronically, from one account to another.
Electronic transfers can be made from one bank to another or within the same bank, in the latter case they are also known as transfers and, normally, no commission is charged.
In Mexico, this process can be carried out from a branch, from the bank’s web portal or through its mobile application.
3. Payment gateways
In electronic commerce, are the equivalent of credit card readers used in physical stores. Also known as payment platforms, they are third-party services that function as intermediaries to process and authorize monetary transactions between clients and sales websites.
One of its greatest advantages is that treat the data of the buyers with total confidentiality and guarantee the security of the transactions. On the merchant’s side, it facilitates the collection process and sales management.
In Mexico, some of the payment gateways most used by electronic businesses are , , PayU, and .
💡Type: payment gateways, such as Conekta, allow you to expand the offer of online payment methods that you offer to your customers, since they facilitate payments by card, bank transfer and even cash payments in convenience stores.
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4. Cash
As its name says, cash payments are those in which the buyer gives physical money in exchange for acquiring a good or service. Cash payments could be divided into three large groups:
- Payment at convenience stores: refers to the one in which the buyer receives a folio or voucher issued by the e-commerce when doing the check out. To make the purchase effective, the customer must go to a branch of one of the convenience stores specified by the seller to make their payment.
- Referenced payment: is the one in which the buyer receive payment instructions and a unique reference at the time of check out. Normally, there is an established period of time for the client to make the payment at a bank branch —or through a transfer— and send the receipt.
- Payment against delivery: when a purchase is made and the customer gives cashwhether in the hands of the seller or the parcel service that makes the delivery, we are talking about a payment on delivery or COD (CAsh Delivery Only).
5.ewallet
Electronic purses or ewallets are an alternative to credit or debit cards. They store the bank information of the cardholder to be used easily in virtual stores or through a mobile application.
Some well-known examples of wallets are Google Pay or Kueski Pay, Samsung Pay.
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Means of payment and forms of payment, what is the difference? 🤔
It is very common to get confused between forms of payment and means of payment, but the reality is that they refer to two different things.
On the one hand, payment methods are companies that act as intermediaries to manage payments; on the other, the specific methods used by the customer to pay for a purchase are called forms of payment.
So we could say that means of payment include forms of payment.
What should I consider when choosing a payment method? 😯
When reviewing all the payment method options that exist in Mexico to choose the best one, we recommend you take into account some criteria such as:
- Cost per transaction
- Preference of your clients
- Deadline for release of funds (and how they can be released)
- Implementation cost and time
- Coverage in case of or cancellation
What is the best electronic payment method for my business? 🧐
Definitely, Knowing which is the best electronic payment method for a business will depend on many things. There is no method superior to another, the answer will simply change according to the market segment you focus on.
For example, the much criticized millennials are open to making purchases with any form of paymentalthough most prefer electronic means of payment and little by little they are forgetting about cash for certain types of transactions, especially when they are going to acquire a high-value product or service.
Now, older consumers (over 50 years old) rarely make electronic transfers or use electronic wallets. They are used to paying with cash and credit cards.
That said, To identify the best means of electronic payment, you should consider the following points:
- Security. Having security locks and an authentication system gives greater certainty to the buyer. No one wants to experience identity theft or card cloning.
- Ease. The fewer steps you have to take to fulfill the payment, the better. Try to make the process as simple as possible.
- Compatibility. Making purchases from mobile devices has become very common. Choose tools that offer the ability to do from anywhere gadget.
Taking each of these factors into account, you will have the information you need to be able to choose the best payment method for your e-commerce.
Do you have a Cloud Store? Here we tell you from how to set them up to how to offer interest-free monthly payments to your customers.
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