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Digital Christmas. Learn about the options to get paid safely online.

  • Nathalia Gomez
  • Author Nathalia Gomez
  • Published 17/12/2021
  • The e-commerce market in Mexico will be worth US$50 billion by the end of 2021.
  • Millions of Mexicans will use various digital payment methods for their Christmas shopping.
  • Cybersecurity is a concern; the number of criminal gangs doubled in 2021.
  • E-commerce apps, the favorite of Mexicans.
  • Safe online payments and collections, market options.
  • E-wallets are growing in popularity but have their limitations.

The pandemic accelerated many things and one of the sectors that grew significantly was e-commerce.

According to the Mexican Association of Online Sales, in 2020 e-commerce in Mexico grew 81% and exceeded 316 billion pesos. Some companies reported sales that they had budgeted for five years from now, that is, the world has changed and so has the way of buying and paying.

The holiday season is here and although physical stores have already opened and many people prefer the face-to-face shopping experience, the trend indicates that the numbers will continue to rise in the e-commerce market, which will be worth 50 billion dollars by the end of 2021 according to a study by Openpay, a fintech company dedicated to payment processing.

Safe online shopping this Christmas

Whether through an app, on a website, by transfer with virtual currencies or with payment intermediaries, millions of Mexicans will make online purchases this season and although it sounds very nice and we have already proven that it is practical, it is not as secure as it seems.

Authentication methods are often compromised or simply do not exist. That’s why companies like ReconoSER ID set their eyes on Mexico, to offer their advanced biometric validation solutions and counter the risk of electronic fraud.

Cybercrime gangs doubled from 2020 to 2021 according to digital security specialist Carlos Estrada, who says that only six gangs had been detected before the beginning of the pandemic, making identity theft and chargebacks their favorite way to commit fraud.

Online shopping in Mexico represents a risk as it is the country with the highest percentage of online fraud in the world, with 3%. A secure experience depends a lot on the shopping channel, but mainly on the layers of security that these channels include in their payment processes.

Apps that consumers prefer

Shopping apps are growing in popularity among consumers. Their downloads increased 43% between January and June 2021, according to The State of e-commerce Apps Mexico & Latinoamerica 2021 report by AppsFlyer.

And it’s no coincidence that consumers spent 55% more on shopping apps during 2020, or that 75% of global consumers prefer to shop on sites that allow them to combine the experience of buying online and picking up in-store or vice versa. Consumers want to use their mobile devices to complete their payments, according to data from online payments firm Adyen.

Mercado Libre, Amazon, Shein and Liverpool apps are the most popular among Mexican consumers, according to a study by the consulting firm App Annie. The same report indicates that users of these apps in Mexico accumulated a total of 26.4 million hours in the second week of August 2020, the highest peak of last year. The same or even higher numbers are expected this Christmas.

Big brands are understanding that cybersecurity is not an expense, it is an investment where customers appreciate the safeguarding of their personal data and banking information with more and more purchases.

Growing electronic payment options

There are many digital payment methods for the consumer and for the one who charges, whether it is a retailer, an SME, an online store or anyone who provides any type of service.

Banking transactions are safe through digital payment methods that are gradually being adopted by many businesses in Mexico that until now had not been banked.

Platforms such as PayPal paved the way in the world of online payments by being the pioneers. In Mexico, Mercado Pago went from serving only on the platform to being accepted in convenience stores and granting credit for up to 18 months.

Companies such as Clip, Openpay, PayU, Sr.Pago and iZettle have enabled thousands of merchants to accept all bank cards: Visa, Master Card and American Express. Each has different features that allow merchants to turn their tablet or smartphone into a banking terminal, with Bluetooth points to connect more than one device or to carry in the field to facilitate payment of services remotely.

E-wallets replace cash

Banco de México created a digital charging platform (CoDi) in 2019 to help the population integrate with financial technologies. It was not very well received at the time but many institutions were already developing their own electronic wallets, or e-wallets.

Samsung Pay, BBVA Wallet or Weex Wallet were some of the options launched in Mexico for users to use less their worn out credit or debit card and replace it with electronic money, but the technological gap appeared.

For these technologies to work properly it is necessary to have a mid-high or high-end smartphone, otherwise the necessary functions to enforce e-wallets are not available.

In conclusion, the e-commerce market will report great growth during the holiday season, maintaining the upward trend in consumer spending. There are more and more secure ways to make payments and transactions, but it is necessary to redouble efforts in cybersecurity because the risk of fraud is still very high.

By Alfredo Gutiérrez Bayardi

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