Cash is Still King in Mexico

Cash is Still King in Mexico

Although many of the western countries in Europe and North America are using less and less cash, cash is still king in Mexico. It doesn’t matter if you are purchasing food, merchandise, or paying for a service, cash is the most popular way to pay, despite the latest move geared toward credit and debit cards and internet banking.

What Form of Payment Can Be Used in Mexico?

Lately, debit and credit cards is being used in most of the areas in Mexico and even the Mexicans working class residents are using plastic cards too as the middle and upper classes are not using cash as their choice for payment. Half of the households in Mexico don’t currently have a bank account, and these households are relying on the cash based economy in their country for all their trading. Slowly, online banking is being used, but cash usage is culturally preferred, and an understudy by the Bank of Mexico revealed that a very large amount of Mexican households that do have debit cards are only using the debit cards to withdraw their earnings from an ATM, which states that cash is remaining to be the choice and often preferred as the payment form of choice in Mexico.

Cashless Payments at Establishments in Mexico

Cashless payments are expected at many establishments in Mexico. These establishments include; many of the major supermarkets, department stores, mall stores, many of the restaurants and diners in big Mexico cities and towns, popular car dealerships, furniture stores, tech stores, top chains such as Starbucks, bus companies, travel agencies, the doctors, the lawyers, the dentists, and all types of businesses that cater to the middle class and upper classes that usually use credit cards and debit cards along with smartphone payments. Prepay mobile phone companies require you to make a payment by using a debit card or credit card, and you can make your payment online or on your phone by using a debit card and credit card.

Cash Only Accepted

There are some establishments that only accept cash for payment in Mexico such as local owned and operated convenience stores, markets that are open-air, street cabs independently owned and operated, shoe-shiners, trinket vendors, street food vendors, corner newspaper machines, small shops and boutiques, and paying for your personal help such as your maid, pool-man, or gardener. Some of the specialty trades such as a plumber, electrician, and carpenters will only accept a cashless payment if the job is large and this payment will be a money transfer form to their local bank, but if one of the specialty trades is doing a simple routine job such as fixing a leak on your kitchen faucet, then they will only accept cash as the form of payment.

Purchasing Souvenirs on Vacation: When you are wanting to tour the city or town that you are vacationing in, then you will need cash for any local transport and to purchase any souvenirs from stores, boutiques, and street vendors.

Cash is usually only accepted for tipping in Mexico, but when you are tipping in cash, then you will want the cash to be done in Mexico pesos only. If you are vacationing on a tour package and most of your time will be spent at the resort, then you may not have to use much cash.

There are only a few reasons why you would need to have cash on certain occasions, which is why cash is still king in Mexico.

Thanks to information found at:

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