{"id":5453,"date":"2017-11-11T09:02:26","date_gmt":"2017-11-11T09:02:26","guid":{"rendered":"https:\/\/insights.invyo.io\/latam\/?p=5453"},"modified":"2017-11-16T09:58:36","modified_gmt":"2017-11-16T09:58:36","slug":"cash-payments-to-fight-online-credit-card-fraud-in-mexico","status":"publish","type":"post","link":"https:\/\/insights.invyo.io\/latam\/fintech-corner\/cash-payments-to-fight-online-credit-card-fraud-in-mexico\/","title":{"rendered":"Cash Payments To Fight Online Credit Card Fraud in Mexico"},"content":{"rendered":"

The Tech giant Amazon sees big opportunities in Mexico where credit card fraud is a major barrier for most shoppers who are still reluctant to buy online.<\/strong><\/p>\n

Amazon’s recent announcement to offer cash payments for online purchases<\/strong> is also a strategic move in a country where a lot of people still\u00a0earn their living in paper currency<\/strong>.<\/p>\n

As of today, the retail sector in Mexico is mostly composed of brick-and-mortar stores<\/strong>. But this could change in the near future with more online retailers coming<\/strong> to the country to take their piece of the cake. Amazon, Walmex (Wal-Mart), Liverpool, Linio, Mercado Libre, etc.\u00a0are all looking at the\u00a0Mexican eCommerce market<\/strong> valued at\u00a0USD 16.2 billion in 2015<\/strong><\/a>\u00a0which reportedly saw a\u00a059%\u00a0annual growth rate<\/strong>.<\/p>\n

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\u201cIt will intensify the competition of e-commerce in Mexico, not just for Amazon and Walmex but for other players,\u201d said Luis Willard, an analyst at brokerage GBM.<\/p>\n<\/blockquote>\n

Among online payment methods<\/strong>, PayPal is the most popular and recognized by Mexican as the most secure<\/strong> solution to make online purchases<\/strong>. Mexico is the country in the world where cardholders are the most impacted by fraud<\/strong>\u00a0with a 56% rate<\/strong>, according to ACI Payment systems.<\/p>\n

According to\u00a0Fernando Ramirez, product manager for Amazon Mexico:<\/p>\n

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“The cash service aims to attract new customers and give existing shoppers an alternative to credit and debit cards.\u00a0I think there could be a population of new clients that would use this as their primary form of payment.”<\/span><\/p>\n<\/blockquote>\n

Pre-paying cash<\/strong> is a relatively new concept that was first launched by the firm in the US last April. With this new service, Mexican shoppers can deposit between 100 pesos ($5.20) and 5,000 pesos<\/strong> per transaction in physical stores like 7-Eleven.<\/p>\n

The future will tells if Amazon\u2019s cash strategy<\/strong> can attract new customers and get more market share<\/strong> in a culture that has so far resisted online shopping<\/strong>.<\/p>\n

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This article was first published in Reuters<\/strong><\/a><\/p>\n

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The Tech giant Amazon sees big opportunities in Mexico where credit card fraud is a major barrier for most shoppers who are still reluctant to buy online. Amazon’s recent announcement to offer cash payments for online purchases is also a strategic move in a country where a lot of people still\u00a0earn their living in paper […]<\/p>\n","protected":false},"author":2,"featured_media":5486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,6,7,20],"tags":[1731,74,1671,366,394,408,441,1730,617,807,1732,1670,1726,899,1729,1724,1733,1079,1725,1728,1727],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n\t\n\t\n