Mexican government policy drives growth in e-payments

In spite of Mexico's economic progress, cash is still that nation's primary payment instrument. This is because consumers — especially those in rural areas — still do not have access to basic financial services, according to the online data analysis and advisory service Timeric.

However, payment cards are gradually making inroads on cash, as the government and banks begin to provide basic financial access to the population, the study asserts. This provision includes the government's policy for financial inclusion, the expansion of banking infrastructure in rural regions, and the appointment of banking agents.

Government efforts, coupled with the emerging investments in electronic payment infrastructure, have helped increase the number of Mexicans holding a bank account from 27 to 39 percent , the Timeric release said.

Additionally, the Mexican Government is striving to encourage small businesses to install POS terminals, to promote electronic payments and reduce the dependence on cash.

"With the progress on the government's financial inclusion program supported by the large-scale issuance of low-cost cards and improved payment infrastructure, the electronic payments in Mexico is anticipated to rise further ...," said Timetric Analyst Kartik Challa.