Main payment gateways in Mexico for online sales

The Coronavirus or Covid-19 pandemic has caused many economic changes worldwide. Among these is a considerable increase in online buying and selling of products in Mexico and around the world, thus supporting various sectors. However, it's important to know that to enjoy the benefits of e-commerce, you need an intermediary to handle the money transactions between the seller and the end customer. This intermediary is known as a "payment gateway," and while there is a fee for using it, the benefits outweigh the costs, as it simplifies and improves the purchasing process.

What are payment gateways?

“A payment platform or gateway is an e-commerce service provider that authorizes payments to online businesses and provides a secure connection between their online store and the end buyer,” explains Pablo González, Country Manager of PayU Latam in Mexico. In other words, it facilitates the online purchasing process.

These platforms allow money transfers between stores and buyers, either with debit or credit cards or by depositing cash at convenience stores. Each software integrates different features, which we'll discuss in this article to help you find the one that best suits your needs.

How do payment gateways work and why should you integrate them into your online store?

Payment gateways have the necessary infrastructure to process transactions securely and efficiently , providing receipts and supporting documentation to all parties involved. In the case of the store owner, this includes a report that provides access to inventory and banking information.

Why are they necessary? Imagine you decide to sell online but don't set up a payment gateway. During the week, the success of your store leads you to answer 40 messages with varying amounts and customer details. You'll have to collect and organize all that information for shipping and for your banking and inventory metrics. By the end of the month, you'll have had to manually organize more than 160 data points, neglecting your main goal of growing your business . And this doesn't even take into account the number of customers you'll be losing because they don't have a payment method they trust or because they simply can't complete the purchase, closing off opportunities to an international audience.

On the other hand, if you decide to integrate a payment platform, it will collect each customer's data, ensure payment for the items involved (protecting their bank details at all times), and provide receipts for the overall security of the process. This gives you more control over your business and makes it more efficient.

It is important to mention that the money from sales does not go directly into your account and at no time do you have access to your customers' bank details, since the payment gateway acts as an intermediary, delivering the money to you as soon as the process is completed with the institutions involved.

Advantages of using payment gateways

The main advantages of integrating these platforms into your online store are:

• Security which gives your customers the benefit of depositing with an institution that has a secure and robust system.
• User Experience which improves and facilitates the purchasing process.
• Image of your business. By not depositing directly to you, nor involving your data in the process.

Disadvantages of using payment gateways

Although they cannot be considered disadvantages as such, it is necessary that you know the requirements to enjoy the benefits that these platforms offer:

• Sales commission. As it is a third-party service, a usage fee is charged that averages 3%.
• Availability of money. The money will not be available immediately, as the payment gateway processes it and then releases it, usually within two days.
• Dependence on the service. You depend on the proper functioning of the platform and its system to be able to get paid.
• Tax requirements. The RFC is essential to carry out the integration, so you will need to be registered with the Tax Authority.

Now that you know the importance of having this system, we present the main features of the most used payment gateways in Mexico to help you find the option that best suits your business.

stripe

Stripe is new to Mexico, but it is one of the most used and recognized platforms in the United States.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at Oxxo (Beta mode).
• Commission of 3.6% + $3 MXN. See rates here.
• They have an office in Mexico.
• Payment availability 7 days.
• Very efficient technical support
• It has a WordPress plugin with WooCommerce.

PayPal

PayPal is one of the best known and most used platforms worldwide, due to its experience in the market and the wide variety of international cards it accepts.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• They do not accept cash payments.
• Commission of 3.95% + $4 MXN. See details here.
• They do not have an office in Mexico.
• Payment availability within 7 days.
• It has a WordPress plugin with WooCommerce.

Mercado Pago

Mercado Pago is Mercado Libre's payment option. It's one of the most comprehensive platforms, offering numerous features to enhance the user experience.

• It has devices to accept card payments (Blue Point)
• Accepts payments with QR code
• It allows you to make payments/collections through links on social networks and messengers.
• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at Oxxo and convenience stores. See all options here.
• Commission of 3.49% + $4 MXN. With the possibility of reducing it. increasing the payment term.
• They have an office in Mexico.
• Immediate payment available.
• It has a WordPress plugin with WooCommerce.
• It gives you the possibility to make shipments

connect

Conekta is one of the best-known payment gateways in our country, giving value to its popular phrase "We make it possible for everyone to pay online," providing the tools so you can sell to anyone.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at Oxxo.
• Commission of 2.9% + $2.5 MXN on card payments and 3.9% on cash payments at Oxxo. Enquire.
• They have an office in Mexico.
• Payment availability within 2 days.
• It has a WordPress plugin with WooCommerce.

PayU

PayU is one of the longest-established payment platforms on the market, so it has considerable experience. However, its documentation and interfaces are outdated compared to its competitors.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at Oxxo and convenience stores.
• 3.5% commission + $4 MXN.
• They do not have an office in Mexico.
• Payment availability within 3 days.
• It has a WordPress plugin with WooCommerce.

OpenPay

This Mexican company, backed by BBVA Bancomer, is constantly growing, providing a better user experience and convincing companies like the giant Amazon to use it.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at various stores, except Oxxo.
• Commission of 2.9% + $2.5 MXN. See details here.
• They have an office in Mexico.
• Payment availability within 7 days.
• It has a WordPress plugin with WooCommerce.

Direct Payment

Directo Pago offers over 200 local payment methods in 11 countries . Your customers can easily and securely make payments in cash, bank transfers , and with local credit and debit cards in their local currency.

• Accepts debit and credit card payments.
• Accepts payment in installments.
• Accepts cash payments at Oxxo.
• Commission of 3.4%. See details here
• They do not have an office in Mexico.
• Payment availability of 3-7 days.
• It has a plugin and API for WordPress with WooCommerce.

Comparison chart

Comparative infographic of online store payment gateways in Mexico

Do you have questions?

Contact us and we'll gladly help you clear up any doubts you may have about starting your online store. The perfect time to sell your product online is now!

Written by Erika Leyva