Why is OXXO in Mexico so popular? 5 Reasons Why You Should Offer This Payment Method
See why you should accept OXXO: the most used alternative payment method in Mexico’s digital commerce and one of the most prominent cash-based payments in Latin America.
João Paulo Notini
May 29, 2023
Mexico’s annual digital commerce growth is projected to be 32% through 2026, considered the second-largest online market in Latin America. As global digital commerce brands try to expand in the Mexican market and new companies arrive, one payment method stands out, and it can’t be overlooked by any business selling there: OXXO.
OXXO, in Mexico, is a popular convenience store chain that holds a prominent position in the hearts of local consumers and has a payment method of the same name that works as a voucher/cash-based payment.
In this blog post, we will show you why it is so popular and list the top five reasons why global brands targeting Latin American markets should consider offering it as a payment option for their online customers.
OXXO in Mexico
OXXO was established in 2008 as a subsidiary of FEMSA Comercio in Mexico. Leveraging the extensive network of OXXO convenience stores spread across the country, OXXO payments aimed to provide a seamless integration of financial services for consumers.
By offering various services, such as bill payments, money transfers, and digital wallet solutions, OXXO quickly gained traction among the Mexican population.
Five reasons why global brands should offer OXXO
#1 More Access and Convenience
OXXO is among the top-five most used cash-based payment methods in Latin America, and it is Mexico’s largest convenience store chain and one of the country’s most successful retailers.
The fastest growing payment methods in Brazil (2022)
#2 Increased Trust and Familiarity
OXXO has earned the trust of Mexican consumers through years of reliable service. People feel comfortable using OXXO as a payment method because they have a long-standing relationship with the brand. This trust extends to online transactions as well.
By integrating OXXO as a payment option, online businesses enhance the overall shopping experience and instill consumer confidence. Global brands can also leverage their customers’ trust in their products and services, boosting their conversion rates and overall sales.
#3 OXXO Money Transfer: Secure and Efficient
OXXO provides reliable money transfer services, enabling Mexican consumers to send and receive funds domestically and internationally. Since it is a voucher/cash-based payment method, it is less susceptible to fraud and highly efficient.
OXXO money transfers allow online platforms to sell products and services from other countries. For this reason, global brands can cater to the demand for seamless cross-border transactions.
#4 Expansion to other Latin American markets
OXXO’s influence extends beyond Mexico, as it has stores and is accepted in other Latin American countries such as Colombia, Chile, and Peru. By offering OXXO as a payment method, businesses can tap into the broader Latin American market and expand throughout the region.
#5 Seamless Integration and Support
Integrating OXXO as a payment method for online sales is relatively straightforward. OXXO provides comprehensive APIs and plugins, allowing seamless integration with almost any website or app. Moreover, OXXO offers dedicated customer support to assist businesses in implementing their payment solution effectively.
Other Payment Methods in Mexico
OXXO’s popularity in Mexico is still strong. The convenience, trust, cash-friendly nature, and extensive reach of OXXO stores make it a preferred payment method for millions of Mexicans.
Global brands targeting Latin American markets should recognize the importance of OXXO and offer it as a payment option to their customers. However, other payment methods are equally essential for any selling strategy in the country.
Studies have shown that 68% of the Mexican population does not have a bank account – representing more than 87 million people. These people depend on alternative payment options, and besides OXXO, there are two other methods: SPEI and Paynet.
Are you curious to learn about these two payment methods and discover more about Mexico’s market opportunities and payments landscape? Don’t miss our e-book: Payments and Market in Mexico
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