Mexico’s Push to Reduce Cash Dependency for Financial Inclusion and Economic Growth

• Mexico requires all sales to indicate payment methods on electronic invoices using official codes, with retailers supporting cash, cards, transfers, and vouchers
• Cash remains dominant with 85% of purchases under 500 pesos made with banknotes and coins according to ENIF 2024
• Reducing cash dependence boosts financial inclusion by helping people access digital payments, accounts, and credit, as less than 25% of cash-based small businesses have formal credit access
• Lower cash usage helps formalize the economy since cash transactions often avoid taxes, with the informal economy representing 24.8% of GDP worth about 8 billion pesos
• Digital payments provide better traceability for audits and anti-money laundering while offering consumer convenience through smartphone transactions, with Mexico having 95.7% smartphone penetration

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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