In Mexico, a new opportunity has emerged for small businesses and private entrepreneurs: it is now possible to accept bank card payments directly through a mobile phone. The service was launched by the payment platform Mercado Pago, introducing the Point Tap function, which makes it possible to do without a traditional bank terminal.
The new system works on the principle of contactless payment. An entrepreneur only needs to have a smartphone with NFC technology support and install the standard Mercado Pago application. After entering the payment amount, the client simply touches his bank card or smartphone with a digital wallet to the seller’s phone. The payment is processed instantly and the money is credited to the merchant's Mercado Pago account in the same way as when using regular terminals.
The feature will be rolled out gradually throughout March. At the first stage, it will be available only on smartphones with the Android operating system version 10 and higher, equipped with an NFC module. Payment can be accepted both from contactless debit and credit cards, and through mobile wallets.
Despite the rapid growth of electronic services, cash still plays a huge role in the economy in Mexico. Mercado Pago estimates that about eight out of 10 transactions in Mexico are still done in cash. The new tool should help small businesses more easily switch to electronic payments.
Mexico was not the first country to introduce such technology. The feature has previously appeared in Brazil and Argentina. According to Mercado Pago, in Brazil alone, in the first year after launch, more than 200 thousand businesses began accepting payments through mobile phones, and today more than a million merchants in the two countries regularly use this technology.
Mercado Pago — it is the largest fintech platform in Latin America and a payment system created by Mercado Libre. The service makes it possible to make online payments, transfer money, accept payments by bank cards, use a mobile wallet and make payments through terminals or QR codes.