Mexico increased 30% in e-commerce value. At the end of 2011, the value of e-commerce in Mexico will reach $47 billion pesos ($3.6 billion dollars), representing an increase of 30% compared to 2010, according to the most recent study by the Mexican Internet Association (Amipci). Fast Facts: - Mexico is the fastest growing and second largest technology market in Latin America next to Brazil - Broadband, especially ADSL, is one of the fastest growing telecom markets in Mexico - 31% of internet shoppers spent between $30 and $75 per transaction, while 30% spent between $75 and $225 per transaction - Diversity of online payment methods growing - domestic and international players entering the payment market spent between $75 and $225 per transaction Diversity of online payment methods growing - domestic and international players entering the payment market To see more White Papers, please go to the GlobalCollect Knowledge center: http://www.globalcollect.com/payment-service-provider/Knowledge-center/

1. Mexico
30% increase in e-commerce value General statistics 2011
At the end of 2011, the value of e-commerce in Population 113,724,226
Mexico will reach $47 billion pesos ($3.6 billion dollars),
Currency Mexican Peso (MXN)
representing an increase of 30% compared to 2010,
according to the most recent study by the Mexican Major language Spanish
Internet Association (Amipci). Capital Mexico City
GDP per capita $13,900
Fast Facts
Mexico is the fastest growing and second largest
technology market in Latin America next to Brazil Internet usage 2010/2011
Broadband, especially ADSL, is one of the fastest Internet population 34,900,000
growing telecom markets in Mexico Internet penetration 31%
31% of internet shoppers spent between e-commerce volume $3,600,000,000
$30 and $75 per transaction, while 30%
spent between $75 and $225 per transaction
Diversity of online payment methods growing
- domestic and international players entering the
payment market
E-commerce Data
Retail Sites May 2011 Reach Top Retail Sites
80 Wal-Mart
Paguito.com
60 Terra Mexico
Brazil Bing Ciao
% 40 Hewlett Packard
20 Mexico Ticketmaster
BuscaPe.com
0 Argentina Apple.com
Amazon Sites
Colombia MercadoLibre
0 10 % 20 30
Internet Audience Online Payment Preference
Visa
11% 5% 12% 1% MasterCard
15-24
9%
40% 25-34 Other
20% 5%
54%
35-44 19%
24% COD
45-54
Bank Transfer
55+
American Express

2. Quick Overview
Online retail still has plenty of growth potential
The Mexican E-commerce market still has a lot of maturing to Average time online by country
do, in terms of penetration and the number of minutes (Hours)
spent online. As a result, most retail subcategories have a 30
lower reach than the global average, except for computer
hardware and ticket sales. 28
Top online purchase products 26
Online purchase intent in Mexico is evenly divided among the
top eight products and services: books (30%), electronic 24
equipment (25%), tours/hotel reservations (24%) event tickets Mexico Colombia Brazil Argentina
and music (22%), computer hardware (21%) clothing and
video/dvd’s/games (18%).
Mexican users do trust foreign sites
Mexican users don’t trust their local sites more than they trust
foreign ones, in contrast with more advanced markets such
as Argentina and Brazil. At the moment, the most popular retail Top Online Purchase Products
destination by far, is the Argentine website MercadoLibre. (%)
Internet Fraud increases
Regarding reports of companies Symantec and McAfee Labs, Clothing & Media
about 42% of public and private companies as well as Computer hardware
financial institutions have an average of 100 daily attacks from Event tickets
cyber criminals, so that businesses and users of the network are Tours/hotel
increasingly vulnerable to this type of crime. Electronics
Mexican users slightly young Books
Mexican Internet users are split evenly by gender, 51% men 0 10 20 30 40
and 49% women. The Mexican user is slightly young: 64% of
the Mexican online population is under 35 but has significant
purchasing power. Mexicans spend 25.8 hours a month
online, very close to major markets like Colombia (26.6 hours),
Brazil (27 hours) and Argentina (28.7 hours).
Reach of Key Categories
Accessing internet more popular than watching TV
(%)
Mexican Internet users spend double the amount of time News/Information
online than they do watching TV, whether free TV or cable. Retail
Community
Desktop and laptops are the most common way for them to Blogs
connect, but in 2010 30% of Mexican users went online via Instant Messengers
cell phones and 14% went online with smart phones. Directories/Resources
e-mail
Social Media on top Multimedia
Social networks is the main category of websites accessed by Social Networking
Search/Navigation
Mexican users, with a 90 percent reach. This is well above the
global average and in line with Latin America’s average. 0 50 100
Payment Preference: installments are often used
There are a number of alternative payment options for Latin Americans. In Mexico, transactions are
cash or debit based, offline bank transfers and the prepaid Todito Card are also popular. However,
due to the lack of purchasing power of the majority of the population many purchases are done
via installments (‘cuotas’). Often even relatively small amounts are paid for via a microcredit facility
which covers multiple installments. Installments are offered in various parts of the retail sector.
Repatriation
Repatriation is difficult, but there are no withholding taxes for merchants on collected money.

3. GlobalCollect’s payments solutions
Global Collect’s Portfolio Mexico
International Cards GlobalCollect supports Visa Online and MasterCard
Local cards GlobalCollect supports the local AMEX card
Bank transfer GlobalCollect supports Local bank transfers
Check GlobalCollect supports check processing
e-Wallets GlobalCollect supports PayPal, Moneybookers
Cash Consumers can pay via Western Union
Invoicing GlobalCollect can process invoicing in Mexico
Mobile The support for mobile is on the future’s list of GlobalCollect
Mexican payment products spotlight
In Mexico most online payments (about 65-70%) are paid with credit card. The
trend in Mexico is to issue cards that target a specific demographic like women,
soccer aficionado’s, children (debit cards) and so on. Especially large banks like
Banorte and Banamex take this approach.
The usage of prepaid cards for online payments is showing growth in specific
verticals. Originally designed to prepay for internet access and long distance
phone calls, they can now also be used to pay online. Todito is one of the best
known. The potential is also attracting international prepaid cards who plan to
launch in Mexico in the near future.
Perhaps the biggest trend in payments in general and online payments especially
is to make payments in convenience stores like 7-Eleven, OXXO and Elektra.
While shopping people pay their utility bill, online purchase and upload their
prepaid phone. They pay directly or in installments. For convenience stores
processing payments is quickly becoming a competitive advantage as well as a
moneymaker by providing (micro)credit.
A tailored solution
Outsourcing currency conversion services,
combined with a remittance currency set-up
tailored to your needs, allows merchants to
focus on their core business activities and
realize organizational savings.
About GlobalCollect
GlobalCollect is the world's premier Payment
Service Provider of local e-payment solutions
for international Customer Not-Present (CNP)
channels. A pioneer of global payment
processing with more than 15 years of
experience as a full service provider, we have
a proven track record in helping our merchants
realize their global ambitions and expand their
eCommerce activities across the world.
Sources
www.comscore.com - State of the Internet in Mexico
Innopay Study - Online payments 2011
www.mexicanbusinessweb.com - Internet users spend more online (11-10-’11)
www.mexicanbusinessweb.com - E-commerce increased by 30% (06/11/2011)
hhtp://newsletter.usmediaconsulting.com - Keys to Understanding Mexico’s Online Market (2-10-11)
http://thenextweb.com - internet-in-mexico-starting-a-long-journey (31-08-’11)
Global Trends in Online Shopping - A Nielsen Global Consumer Report
Version number: 3.1