Apple Pay goes live in Mexico as card issuer Paymentology partners with Fondeadora to expand digital payments in the North American country.
Companies announced an alliance to bring the product to Mexico this week, thus becoming one of the first to market Apple Pay in the country. Paymentology is a global issuer processor, providing card payment capabilities for fintechs and banks in 50 different countries. Fondeadora, on the other hand, is a Mexico-based digital banking fintech that caters to individuals and businesses.
In a press release, the companies said the partnership marks a significant achievement as Fondeadora can now offer its customers the convenience of using their debit card through their Apple Wallet. With this feature, cardholders can pay online or in-store with merchants who use this payment method.
Digital payments are growing fast
The launch of Apple Pay is a step forward in providing online financial services in Mexico. The second-largest economy in Latin America projects a 15.75% annual growth rate for its payment market through 2027, companies cited in a press release. The new feature would allow its clients to make cross-border payments to other countries in Central and South America.
To be sure, the pandemic has been a large accelerator for digital banking services in the region. “The digital economy in Mexico has flourished post-COVID-19, and with it has come newfound consumer demands around digital ways to pay,” said Alejandro Del Rio, Regional Director Latam at Paymentology.
Digital payments growth has been robust on the back of e-commerce trends. Before the pandemic, the region was a laggard in online sales compared to other parts of the world. The three years of Covid 19 have almost tripled its share in the GDP, up to 11%.
With Apple Pay, customers will make online purchases without entering payment information each time. The companies said customers could use Apple Pay’s Face ID and Touch ID to secure and protect transactions.
“We’re proud to be one of the first in Mexico to bring Apple Pay to our customers,” said Jorge Fernández, General Manager at Fondeadora.