Today, in a world where payments in cash for consumer goods are steadily being replaced by those made by credit cards, debit cards and mobile transactions, Mexico remains standing in a long queue.
In 2013, iZettle entered the Mexican marketplace and actively began to help educate local merchants and their customers on the ease and safety of paying by card, as well as electronically.
From the first day iZettle began operating in Mexico, Business Sweden has helped the company make a smooth transition by providing office space and local market intelligence to mitigate risks. As a result, the company has grown from one to 60 employees over the past five years.
Here’s how.Having back-up from Sweden proves to people here that we’re a professional company, with a reliable product.
About 85% of all consumption in Mexico is paid for in cash, with electronic payments accounting for only 15%. The main reason for this traditional buying behaviour is that only about six merchants for every 1,000 residents accept payments by card. Succeeding with a service turning this upside down is not just about what you know, but who you know that can be critical.
“Business Sweden helped us to present our solution to key stakeholders within the Mexican Government and private companies. Having back-up from Sweden proves to people here that we’re a professional company, with a reliable product,” says Luis Arceo, Country Manager for iZettle in Mexico.
Now, after a handful of years educating local merchants and their customers on the ease and safety of paying by card, as well as electronically, the transaction landscape is changing.
This change has definitely been good for iZettle. Their efforts are paying off for the company, and its customers, too. As one of the first companies to develop a chip-card reader and mobile payments app that complies with international security requirements, iZettle offers a range of financial products for small businesses including payments, point of sales, funding and partner applications.
“We’re teaching people about electronic payments and the reasons why it makes sense to use them everywhere, even for small transactions,” Arceo continued.
The launch of the iZettle debit card for small business owners, for example, meant that those owners who were previously excluded from the Mexican financial system because they were unable to open a bank account, could now start making and accepting card payments.
“One of our customers is a street vendor who sells Mexican candies. We set him up with one of our co-branded debit cards, and since he started accepting payments with iZettle, he’s seen the average ticket size double when customers pay with cards,” says Arceo.
With new processes replacing traditional consumer purchasing behaviour in Mexico, the marketplace is favouring companies such as iZettle that are leading the technological evolution.
In a country of 120 million people, about 180 million credit and debit cards, a large number of users of smart phones and tablets, and good internet access, all of the elements are in place for even greater market penetration for iZettle.
In June 2018, iZettle was acquired by PayPal, partly thanks to their strong presence in Latin America. This will no doubt give iZettle new exciting opportunities for expansion and global reach.
Founded in 2010, iZettle was recently recognized as one of the fastest growing companies in Sweden. Backed by a professional workforce of more than 500 people, iZettle products are available in Sweden, Finland, Denmark, Norway, the UK, Germany, France, Spain, Italy, The Netherlands, Mexico and Brazil.
iZettle, now established as the most reliable solution in Mexico that accepts PIN transactions and Contactless transactions, is continuously increasing payment card acceptance throughout the country.