OXXO – A Guide Through Mexico’s Preferred Cash Payment Method
Accepting OXXO, the most popular payment method in Mexico, is a great way to grow business in the country.
What is Oxxo?
Oxxo, the largest retail chain in Mexico, has emerged as the country’s primary banking correspondent and has introduced various in-store services.
During a single visit to OXXO, customers can purchase groceries, top-up phone bills, settle electricity bills, and even secure car insurance. OXXO’s appeal lies not only in its extensive product range but also in its provision of electronic payment and correspondent banking services.
According to the latest Worldbank report, cash-based payments command a 39% market share in Mexico, surpassing debit and credit card usage. In this cash-oriented economy, OXXO has become indispensable for facilitating eCommerce and enabling the reach of various digital products and services to the Mexican audience.
OXXO’s roots date back to 1978 in Monterrey, where it started as a beer, snacks, and cigarettes store. A decade ago, it strategically opened its cash registers to handle service payments, setting itself apart from competitors.
How can Oxxo be used?
Here’s how the most widely used alternative payment method in Mexico works:
- The customer selects OXXO as their payment method during eCommerce checkout
- A voucher with a barcode is generated, which can be printed or saved on their mobile device
- The customer then visits one of the 20,000+ OXXO stores, presents the barcode to a cashier, and pays in cash
- Payment confirmation typically takes one business day, but real-time confirmation is available if OXXO Pay, another variation of this payment method, is available on the eCommerce store
OXXO's opportunity lies in convenience
The unbanked population rate in Mexico remains high, with only 37% of Mexicans having a bank account. Consequently, approximately 80% of Mexican consumers still rely on cash payments.
OXXO plays a significant role in the country’s eCommerce landscape, primarily due to its unparalleled convenience, making it the preferred “corner store” for countless Mexicans. OXXO’s expansion is remarkable, with a new store opening in Mexico every 19 hours. This accelerated growth results from a robust strategy to expand across Latin America. As of the first quarter of 2023, there are a total of 21,007 OXXO stores operating in Mexico, complementing the chain’s more than 23,500 points of sale spread throughout the Latin American region.
OXXO has an eye on the present and another one on the future
In addition to the deeply ingrained cash-based payment methods in Mexican consumer culture, which is expected to maintain a steady 10% share until 2026, OXXO is proactively preparing its solutions to meet rising digital demand.
In March 2021, OXXO introduced its eWallet, Spin Card, intending to extend digital financial access to its already devoted customer base. The results have been impressive, with over 6 million clients gained in just the past 2 years.
If you plan to expand your business in Mexico or enhance your customer base in the country, offering the most relevant local payment methods is essential. With dLocal’s assistance, you can seamlessly navigate the Mexican payment landscape and include OXXO payments, enabling you to operate like a local and seize promising business opportunities in Mexico.