PART 3: MEXICO & HONG KONG
Executive summary
The global economic landscape is heavily influenced by high-growth markets. From a payments standpoint, they are typically characterized by digitising economies, eCommerce industries, and distinct consumer preference. High-growth markets present big opportunities for merchants, however, entering and navigating them successfully takes industry expertise and precise strategy.
In the third edition of our Global Expansion Guide, we zero in on two blossoming high-growth economies; Mexico and Hong Kong. Both are displaying major untapped potential, operating as regional ‘gateways’ to the vast Latin American and Chinese markets.
Mexico is emerging as a digital powerhouse in LATAM, with soaring rates of internet penetration and a booming eCommerce sector. Hong Kong presents an equally compelling narrative, with high rates of mobile wallet adoption and a strategic location that bridges western markets with mainland China. Based on PCMI’s compound annual growth rate (CAGR) projections, the combined volume of the two eCommerce markets will exceed $214 billion by 2027.
This guide explores the unique growth drivers behind the two regions, including their major payment trends and changing regulatory conditions. We will also present actionable strategies, including those enabled with Nuvei solutions, for unlocking the full potential of these dynamic economies.
Success in Mexico or Hong Kong’s markets will demand more than just ambition. There are plenty of regional nuances to consider:
• The respective regulatory landscapes are complex. Mexico’s digital service tax and Hong Kong’s compliance requirements will pose operational challenges.
• Their digital payment ecosystems are thriving but still evolving, demonstrated by features like low financial account penetration in Mexico, for example.
• Localization of pricing, currency and customer experience are strongly preferred in both regions.
• Technological adaptation to emerging local APMs will be vital to staying competitive in either market.
Adopting a holistic expansion strategy will be key to market entry success, combining localized expertise, scalability and robust technical backing. Nuvei sits at the forefront of payment solutions and strategy, offering a suite of services including on-the-ground consultancy, a vast acquiring network, including over 700 local and global payment methods, Merchant of Record services, and faster settlements.
As part of our consulting for expanding businesses, we are mapping the infrastructure, consumer behaviors, and regulatory developments that are shaping global commerce. This guide offers a critical lens into two markets displaying promising growth indicators in an evolving payments technology landscape.
Introduction
The rising importance of high-growth markets
Mexico and Hong Kong are playing pivotal roles in shaping eCommerce and financial innovation, with their strong growth trajectories fueled largely by how they are embracing digitization.
Emerging economies including Mexico are expected to outpace advanced markets in economic growth. The IMF projects an average growth rate of 4.0% per year from 2024 to 2029 for ‘high-growth’ markets like Mexico. This is more than double the 1.7% projected for advanced economies (e.g., U.K, Japan, Canada) and above the global baseline forecast for all markets of 3.2%.1
Mexico’s eCommerce sector is projected to grow at a 25% CAGR through 2027, reaching a value of $184.2 billion.2 This expansion is driven by steeply rising internet penetration, a growing middle class, and adoption of localized payment methods. The increasing popularity of digital wallets and real-time payment methods are rapidly winning market share, making it crucial for merchants to offer localized, frictionless payment experiences.
Meanwhile, Hong Kong has cemented itself as a global leader in cross-border trade and digital payments, with 55% of eCommerce transactions originating from international merchants.3
Almost half of eCommerce transactions (44%) are processed via regional digital wallet providers such as AlipayHK, WeChat Pay, and PayMe.4 The Faster Payment System (FPS) has become a core pillar of Hong Kong’s digital economy, enabling real-time bank and wallet transfers. FPS has been accelerating the adoption of contactless and QR code-based payments, strengthening the city’s reputation as a financial technology hub.5
For businesses looking to capitalize on high-growth markets like Mexico and Hong Kong, Nuvei provides a comprehensive suite of consulting expertise and payment solutions.
With a deep understanding of payment ecosystems and consumer behaviors, Nuvei supports seamless market entries. Nuvei solutions can then unlock new growth opportunities, by offering localized acquiring, real-time payment (RTP) support, and cross-border transaction facilitation, among other capabilities. This tailored approach helps businesses optimize local payment strategies and maximize revenue potential in evolving digital economies.
Key drivers of growth in high-growth markets
The rapid expansion of eCommerce in high-growth markets like Mexico and Hong Kong is fueled by a combination of economic, demographic, and technological factors. Their unique market profiles share some similaritiesthat merchants need to understand and adapt to.
Expanding digital consumer bases
In both regions, demographic shifts are accelerating eCommerce growth, but particularly in Mexico. Highgrowth sectors are typically fueled by younger, ‘tech-savvy’ populations.
Mexico’s median age is 30.8, with a consumer base that has grown up around mobile banking, online retail, social media, and real-time payments.6 Inbound cross-border commerce is expanding rapidly too, with 80% of Mexican online shoppers having purchased from international retailers in 2022, up from just 50% in 2021.7 This drastic shift is attributed to incentives like greater discounts, convenience and access to products unavailable in-country.8
By contrast, Hong Kong’s median age is higher, at 47.4, however, the region displays high levels of engagement and adoption of digitized payment methods.9 As a leading global financial hub, Hong Kong benefits from free trade policies, low taxation, and a highly developed technological infrastructure. Operating as an almost cashless society, they have seamlessly integrated solutions like digital wallets into everyday life.
Both regions demonstrate a broad trend seen in high-growth markets: a demand for convenient, fast and secure payment experiences, supported by rapid adoption of new financial technologies.
6 CIA – The World Factbook Database | 7“Mexico - eCommerce,” International Trade Administration, https://www.trade.gov/country-commercial-guides/mexico-ecommerce, accessed September 2024. | 8Estudio de Venta Online - 2024,” AMVO, https://www.amvo.org.mx, accessed October 2024. | 9CIA - The World Factbook Database | 10Mexican
Inclusion
Government and industrybacked
technological advancements
Governments and big brands often influence consumer preference. This is certainly true for next-generation payment methods. In Mexico, digital wallets (like Mercado Pago) and realtime transfer solutions (e.g. Dinero Móvil) are working to reshape the payment landscape.
Government-led financial inclusion efforts, such as the National Financial Inclusion Policy (PNIF), aimed to increase the percentage of citizens who owned at least one financial product (e.g, banking, saving, credit, and insurance) to 77% by 2024, up from 68% in 2018.10 The country is pushing to increase real-time payment adoption, with bank transfers, digital wallets and alternative payment methods all beginning to chip away at the dominance of cash and credit cards.
In Hong Kong, the Faster Payment System (FPS) has revolutionized realtime transactions, making instant, low-cost bank and wallet transfers a standard in the region. As a gateway to Mainland China, Hong Kong’s potential for cross-border commerce is substantial. Hong Kong’s eCommerce sales from international merchants are expected to grow by 4%, reaching 59% by 2027.11
Mobile-first commerce and cross-border trade
In Mexico, 75% of eCommerce transactions occurred via mobile devices in 2023 (a 27% increase since 2019), with the volume of mobile transactions expected to jump to 82% by 2027.12 The growth of digital wallets and installment-based payments through Buy Now Pay Later platforms (BNPL) is further driving mobile commerce adoption.
Hong Kong’s eCommerce landscape is dominated by cross-border payments and multi-currency processing, as consumers frequently purchase from global brands. Smartphones (mobile penetration rate of 96%) are ubiquitous and the use of digital wallets have made international purchasing effortless and accessible for almost any consumer in Hong Kong.13
With the number of consumers shopping via mobile devices at record highs, businesses must optimize their digital platforms to meet demand. This can be done in many ways, from integrating local payment methods, to streamlining secure checkout experiences.
Ultimately, catering to evolving buyer behaviors is essential, especially in competitive, fast-growing markets like these.
Regional spotlights:
Mexico & Hong Kong
Mexico
Mexico is Latin America’s second largest eCommerce market and one of the fastest-growing digital economies in the LATAM region. With a young, digitally engaged population and increasing internet penetration that reached 81.2% in 2023, Mexico presents untapped potential.14
The Mexican eCommerce sector is fueled by industries such as retail, travel, and digital services. Online retail makes up 75% of total eCommerce transactions, which is particularly notable when three quarters of all Mexico’s online payments are made via mobile devices.15 Essentially, the majority of eCommerce activity in Mexico is made up of frequent online shopping via smartphones.
Cross-border eCommerce is normalized, with 79% of Mexican online shoppers purchasing from international retailers.16 The United States-Mexico-Canada Agreement (USMCA) also facilitates cross-border trade by reducing tariffs and customs barriers. Logistics have improved in Mexico in the last decade, and cross-border selling made up 20% of eCommerce transactions in 2023. However, combined with changing consumer preference and trade relations, it is expected to rise to 26% by 2027.17 18 Internationally enabled credit cards were the leading payment method in Mexican eCommerce, capturing 33% of total spend in 2023, although experts believe this will
decline over the next four years. Debit cards, meanwhile, are the fastest growing payment methods, despite being typically less popular in LATAM. Meanwhile cash usage, although still making up almost a tenth of payments in Mexico, is projected to drop from 8% to 3% from 2023 to 2027.19
Digital wallets and RTP transfers are contributing to the shifts in Mexico’s payment ecosystem, however, it remains a country still held back by a historic lack of access to financial accounts, digital payment methods, and other financial tools. Compared to other high-potential emerging markets, Mexico has relatively low fintech and bank account penetration.
According to the World Bank, the share of the population owning an account at a financial institution or with a mobile-money-service provider reached 49% in 2022, up from 27.4% in 2011. Reasons for the volumes of ‘financially excluded’ Mexicans are attributed to many things, including geographical divides and gender gaps. PCMI estimates that financial account penetration in Mexico is at approximately 58% in 2023, including consumers with access to wallet solutions.20 For merchants entering Mexico, integrating some of these new local payment methods, optimizing for mobile-first experiences, and addressing logistical challenges will be key to success in a market that is expanding and modernizing.
Hong Kong
POPULATION OF 7.78 MILLION
INTERNET PENETRATION (2024) 95.6%
CROSS-BORDER SALES MARKET SHARE 56% IN 2024, PROJECTED TO REACH 59% BY 2027
ECOMMERCE MARKET VOLUME (2024)
$23.5 BILLION USD
ECOMMERCE CAGR (2023–2027) 10%
Hong Kong
Hong Kong is a global financial hub and a major shipping hub, making it a key market for merchants planning to expand into Asia. The city’s eCommerce sector is fueled by very high internet penetration (95.6% in 2024) , a mobile-first consumer base, and a well-established cross-border trade network.21
The dominance of digital wallets like AlipayHK, WeChat Pay, and PayMe, make up just under half of all eCommerce transactions, however, the adoption of QR code-based and contactless payments has also accelerated in recent years.
Supported by government initiatives such as Hong Kong’s Smart City Blueprint and the Faster Payment System (FPS), these projects facilitate peer-to-peer transfers, e-wallet top-ups, and online purchases for residents.
Hong Kong’s geographic position and diplomatic status as a Special Administrative Region (SAR) to China are key its channeling cross-border activity through its eCommerce market. The sector is further fueled by factors like zero-tariff policies and a high level of card ownership.22
The city’s developed infrastructure and business-friendly regulation framework are ideal for businesses with ambitions to enter the APAC region. Merchants expanding into Hong Kong must prioritize digital wallet integration, mobile-first experiences, and multi-currency support to cater to the region’s highly connected consumer base.
“Many companies use Hong Kong as a springboard to explore China’s and Asia’s markets, as regulations here are much less complex. Its strategic location, business-friendly environment, dynamic international setting, and worldclass infrastructure all contribute to making Hong Kong a key hub for eCommerce.”
Alvin Chan Nuvei’s Sales Director for Hong Kong
Leveraging the Faster Payment System (FPS) will improve transaction efficiency and maintain conversion rates in a very competitive eCommerce space that sets a benchmark for digitized payment usage.
Mexico trends
Government initiatives supporting digitalization
The Mexican government has made financial inclusion and digital infrastructure two clear priorities.
SPEI-CoDi (Sistema de Pagos Electronicos Interbancarios - Cobro Digital) was introduced as a QRbased real-time payment system by Banco de México in 2019.
However, its adoption has been low due to limited acceptance rates by merchants and consumers. In 2023, the Bank of Mexico launched DiMo (Dinero Móvil), an improved real-time payment solution that allows instant transfers using just a phone number. Experts believe DiMo’s launch will boost adoption rates accordingly, and bank transfers are expected to rise from 6% to 10% of eCommerce transactions by 2027.23
Digitization initiatives have helped Mexico become attractive real estate amongst high-growth markets, due to factors like its low barrier to market entry and growing online retail sector. In the 2021 edition of the World Bank’s “Ease of Doing Business” report, the country ranked 60th, ahead of Brazil (124th) and Colombia (67th).
That said, Mexico does have historic challenges, as noted by the IMD’s World Competitiveness Index. Issues with infrastructure, corruption, government efficiency and a lack of specific eCommerce legislation have hampered progress. The government is tackling these issues with both investment and legislation.24
Profeco (Mexico’s Federal Consumer Protection Agency) approved the non-mandatory “Mexican Norm for eCommerce” (NMX-COE-001SCFI-2018) in 2018, which began outlining the best practices to protect consumers and guide merchants to establishing a larger presence in the country’s digital environment.25
Today, eCommerce in Mexico is governed by the Commercial Code and various commercial laws, along with the Federal Consumer Protection Law, the Foreign Trade Law, and the Law on the Protection of Personal Data Held by Private Parties. An increase in cybersecurity regulations and consumer protection efforts, such as those codified by Profeco, have been created to foster greater trust in digital transactions.
23For more information, see: Andreas Farge, “DiMo and Financial Inclusion in Mexico,” PCMI, October 30, 2023. https://paymentscmi.com/insights/ dimo-financial-inclusion-mexico/, accessed October 2024. | 24IMD Competitiveness Index – Mexico: https://www.imd.org/entity-profile/mexico-wcr/, accessed October 2024 | 25See, for instance: “Norma Mexicana sobre e-commerce,” Economy Secretary – Mexican Government, http:// www.gob.mx/se/articulos/norma-mexicana-sobre-e-commerce?idiom=es, accessed October 2024. | 26“Estudio de Venta Online - 2024,” AMVO, https://www.amvo.org.mx, accessed October 2024. | 27“Estudio de Venta Online - 2024,” AMVO, https://www.amvo.org.mx, accessed October 2024. | 2875. “Mexico - eCommerce,” International Trade Administration, https://www.trade.gov/country-commercial-guides/mexico-ecommerce, accessed September 2024. | 29 PCMI | 30 PCMI
An emerging generation of eCommerce shoppers
According to the Mexican Association of Online Sales (AMVO), around 58% of online shoppers in Mexico were between 25 and 44 years old in 2023.26 The same percentage (58%) of Mexico’s total online shoppers were also identified as belonging to upper classes (A, B, and C+ in the local classification).
The lowest income bracket (DE) represented only 6% of all shoppers, although the share was increasing,
possibly due to increasingly affordable mobile handsets and increasing internet penetration. The same was true for the unbanked population, which accounted for only 9% of online shoppers in 2023.27
These statistics indicate most of the eCommerce activity in Mexico, and shifts in payment preferences, are being driven by younger, financially healthy consumers entering the middle class.
Cross-border commerce expansion
Most of Mexico’s online shoppers (79%) purchased internationally, and cross-border transactions accounted for a fifth (21%) of total eCommerce volume in 2024.28 This share is projected to grow to 26% by 2027.29 The trend towards cross-border
transacting is fueled by competitive pricing, a demand for international brands, and the strong logistics infrastructure. This is particularly true with U.S. retailers, where Mexico benefits from the USMCA trade agreement.
High smartphone penetration driving mobile commerce
Mobile commerce dominates the Mexican eCommerce landscape, with mobile devices accounting for 77% of online transactions in 2023, a figure expected to rise to 82% by 2027.30
Mobile phone subscriptions reached 100 per 100 people in 2021, a
number that is almost certainly higher today.31 This milestone aligns with the evidence of Mexico‘s consumer payment preferences shifting towards digitization; app-based experiences, one-click checkouts, and localized payment solutions.
eCommerce by device
An eCommerce industry dominated by online retail
The online retail sector in Mexico currently represents 75% of the total eCommerce market, the highest share of all the eight countries analyzed. By 2027 it is expected to reach 81%.
The sector has seen significant recovery and acceleration since the COVID pandemic, rising from US$17.1 billion in 2019 to $52.9 billion in 2023 - over a 200% increase. This figure is expected to reach $142.3 billion by 2027. According to the Mexican Association of Online Sales (AMVO) , the fastest growing categories in 2023 were clothing (41.7% growth), household appliances (38.3%), nonalcoholic beverages (37.2%) and beauty and personal care products (32.7%).
Ride-hailing and delivery apps are steadily rising year-on-year, expected to grow at a CAGR of 13%. Key players in this market include Uber, Didi Food, and Rappi, which have helped to make Mexico the second largest market of food delivery in LATAM.32
Other verticals expected to grow quickly from 2023 – 2027 included SaaS with a projected CAGR of 26% and Gaming (+17%) - while the Travel sector is projected to recover quickly, post-pandemic (+17%).33
According to AMVO’s report, more than 90% of Mexican online shoppers surveyed anticipated spending more on travel in the coming year.34
Illustrating quite how quick the Mexican market is expanding, AMVO also found that 21% of respondents had made their first online purchase in the travel category within the past year.
eCommerce by vertical (US$ Bn)
Source: PCMI
31The World Bank database | 32“México, Segundo Mayor Mercado de Food Delivery En AL,” El Economista, September 19, 2024. https://www.eleconomista.com.mx/empresas/Mexico-segundo-mayor-mercado-de-food-delivery-en-AL-20240919-0121.html, accessed October 2024. | 33Estudio de Venta Online - 2024,” AMVO, https://www.amvo.org.mx, accessed October 2024. | 34“Pulso:Viajes en Venta Online,” AMVO, https://www.amvo.org.mx/, accessed October 2024. | 35PCMI | 36PCMI
Payment methods in Mexico
Though gradual, Mexican consumers are shifting towards digitalfirst and real-time payment solutions. Merchants entering the market must align with local payment preferences to optimize conversion rates and enhance customer experience.
Digital wallets: The fastest-growing payment method
Digital wallets are among the fastestgrowing payment options in Mexico, expected to expand at a 30% CAGR from 2023 to 2027.35 Mercado Pago, PayPal, and Oxxo’s Spin dominate this space, offering secure and convenient transactions, particularly for cross-border purchases and mobile commerce.
A shift toward debit card usage
As shown above, credit cards remain reliable, however Mexico differs from other Latin American markets in that debit cards are more widely used for eCommerce. In fact, debit cards are the second most preferred method in eCommerce, projected to overtake credit cards over time.
Issuers have gradually made debit cards available for e-commerce through individual partnerships with merchants and local acquirers.
Adoption is strongest among younger consumers and urban populations, where smartphone penetration and eCommerce engagement are highest.
However, this shift towards debit cards may also be driven by the relatively low credit card penetration in the country and the lack of a widely used real-time payment (RTP) solution like Brazil’s PIX (CoDi, for example, has struggled with adoption rates).
Debit card penetration is expected to increase from 38% to 46% of online transactions by 2027, while credit card usage is projected to decline from 29% to 21%.36 Major card networks like Visa, Mastercard, and American Express are widely accepted, but limited credit access and consumer debt aversion are making debit the preferred option for many.
“For Mexican consumers, the online payment experience with debit cards is very similar to that of credit cards, while in other countries, like Brazil, the debit card experience is much worse.”
Juan Jorge Soto | Nuvei’s General Director | LATAM | Nuvei
Source: PCMI
Cash declines, but remains relevant
Despite the push toward digital payments, cash is still a crucial option for unbanked and underbanked in Mexico. Mexico’s albeit shrinking ‘informal’ cash-based economy is being disrupted through digitization. Oxxo Pay, a voucher-based payment method, allows users to generate a code online and pay in cash at Oxxo convenience stores, beginning to bridge the gap between digital and physical transactions.
Cash payments are expected to drop from 6% in 2024 to just 3% by 2027, driven by increased wallet adoption, bank account penetration and the Bank of Mexico’s efforts to promote digital payments – best demonstrated by the launches of CoDi (2019) and DiMo (2023).37
Buy Now, Pay Later (BNPL) – niche but growing
BNPL solutions represent a small but growing segment of Mexico’s payment landscape, accounting for just 2% of eCommerce spending in 2024, a relatively low share, compared to other surveyed countries like Colombia (4%) or the UAE (8%).
However, installment-based credit is already commonplace in Mexican consumer behavior. As many shoppers are already accustomed to the practice, it is reasonable to project BNPL to grow in usage in future.
Alternative and emerging payment trends
Retailer-Specific Payment Solutions:
Large retailers like Liverpool and Walmart Mexico (Walmex), who already have well-established physical footprints are seeking to strengthen their eCommerce capabilities. Walmex have already become significant players in the online grocery space, by offering proprietary digital payment options.
Launching financing programs to enhance customer loyalty is also becoming more commonplace amongst the largest players in Mexico, like Shopee Loyalty, Amazon Prime and Coppel Max.
Understanding and integrating locally preferred payment methods - especially debit cards, wallets, and real-time bank transfers - is essential for merchants aiming to succeed in Mexico’s dynamic digital commerce market.
Hong Kong trends A highly connected digital economy
96% of Hong Kong’s population have regular internet access and mobile phone subscriptions number 292 per 100 people. This means Hong Kong has the highest rate of phone subscriptions globally.39 Being a mobile-first market has helped eCommerce thrive in the region, and digital payment experiences are preferred and expected. In 2024, eCommerce volume in Hong Kong reached $23.5 billion, with projections to reach an annual volume of $30.5 billion by 2027.40
KONG’S ECOMMERCE VOLUME (US$bn)
Efficient logistics and infrastructure for eCommerce growth
Hong Kong’s position as a global trade hub and advanced infrastructure play a crucial role in its eCommerce market. The city’s strategic location – being a natural harbor city, with a Chinese land border - enables efficient cross-border trading, with 55% of online purchases originating from international merchants in 2023.
This percentage is expected to rise to 59% by 2027, fueled by a strong logistic network, zerotariff policies, and high credit card penetration.41
Government policies promoting digital transformation
The Hong Kong government continues to drive digital innovation through initiatives such as the Smart City Blueprint and Blueprint 2.0, which focus on introducing a range of new, digital infrastructure projects.42
As part of the Blueprint initiative, investments like city-wide free public Wi-Fi have helped accelerate the adoption of digital payments.
However, the biggest difference has been through the Faster Payment System (FPS). Launched as part of the original Blueprint scheme, FPS enables instant cross-bank and e-wallet transactions, reinforcing Hong Kong’s reputation as a leader in digital finance. In September 2024, the Hong Kong Monetary Authority (HKMA) began the second phase of the e-HKD digital currency pilot, although results are yet to be reported.
eCommerce by vertical (US$ bn)
NUVEI GLOBAL EXPANSION
The dominance of digital wallets and alternative payments
Hong Kong’s eCommerce ecosystem is heavily reliant on digital wallets, with the number of eCommerce transactions expected to reach 46% by 2027.43
Meanwhile, traditional payment methods such as cash are low and continue to decline, with cash -based eCommerce payments now accounting for just 2% of all payments. It’s projected to fall as low as 1% in the next few years.44
Consumer demand for convenience driving eCommerce growth
Hong Kong’s fast-paced urban lifestyle has increased demand for convenience in eCommerce, with consumers preferring seamless payment experiences and rapid delivery services. The dominance of mobile commerce continues to rise, with 62% of online purchases
completed via smartphones in 2023, expected to reach 64% by 2027.45
Retailers must leverage mobile-first platforms, embedded finance, and personalized digital wallet incentives to sustain consumer engagement.
eCommerce by device
“Hong Kong is rapidly becoming a cashless society, although you can still find some small restaurants and other businesses that don’t accept cards or digital payment methods.”
Alvin Chan | Sales Director for Hong Kong | Nuvei
NUVEI GLOBAL EXPANSION
Payment trends in Hong Kong
Hong Kong’s payment ecosystem is characterized by high digital adoption, real-time transaction capabilities, and cross-border payment integration.
Digital wallets dominate
Digital wallets remain the leading payment method in Hong Kong, accounting for 44% of eCommerce payments in 2023 and projected to grow to 46% by 2027.46
WeChat Pay, AlipayHK, and PayMe dominate the market, offering integrated payment solutions that enhance transaction speed and security.
Credit cards remain strong
Despite the rise of digital wallets, credit and debit cards do continue to play a major role, making up 42% of eCommerce transactions.47 Cashback rewards, loyalty programs, and the ability to link cards to digital wallets are behind their continued usage.
“Cards feature strong rewards programs - whether through cashback or the accumulation of air travel miles - which increases their value proposition for customers.”
Alvin Chan Nuvei’s Sales Director for Hong Kong
Cash usage is dwindling
Cash usage in Hong Kong has declined significantly, representing only 3% of transactions in 2023.48 With digital payment adoption accelerating, this figure is expected to decrease further as more businesses and consumers transition to contactless and mobile-first payment solutions.
Emerging digital currencies
The Hong Kong Monetary Authority (HKMA) is advancing its e-HKD digital currency project, with research and pilot programs ongoing. The results of the initiative are expected in 2025, and a successful rollout could further modernize Hong Kong’s digital payments landscape.
Cross-border eCommerce growth
Hong Kong’s international trade environment is driven by tarifffree policies, strong logistics, and widespread internationally enabled credit card usage, making most transactions easy for Hong Kong consumers.
Hong Kong’s payment landscape is at the forefront of advancement, and exemplifies the potential for digital wallets, real-time payments, and mobile-first shopping experiences.
Merchants looking to succeed in this market must integrate frictionless, localized payment solutions that align with consumer expectations and support seamless cross-border transactions.
Overcoming barriers:
Navigating regulatory and consumer challenges
• Mexico: Complex tax regulations, continued cash dependency, and fraud risks create challenges for businesses looking to scale.
• Hong Kong: Stringent compliance requirements, high competition, and evolving consumer privacy regulations.
Expanding into high-growth markets like Mexico and Hong Kong presents immense opportunities, but businesses must be wellprepared. While both markets have all the hallmarks of high-growth eCommerce sectors, they also present unique challenges that merchants must address to ensure successful market entry.
Regulatory complexity and compliance
In Mexico, tax regulations can be intricate, especially for foreign merchants handling VAT on digital services (16%) and cross-border eCommerce transactions.
Compliance with consumer protection laws (regulated by Profeco) and local payment processing rules is critical for avoiding legal issues.
Meanwhile, Hong Kong’s probusiness environment still demands compliance with stringent anti-money laundering (AML) policies, consumer data protection regulations, and cross-border transaction oversight.
Businesses must adhere to the Personal Data (Privacy) Ordinance (PDPO), which regulates data collection, storage, and sharing.
Additionally, financial reporting and trade regulations are prone to changes due to Hong Kong’s role as a strategic trade hub and its diplomatic relations to China.
Fraud risks and consumer trust
LATAM has one of the higher payment fraud rates in the world, with cybercriminals targeting eCommerce transactions, phishing attacks, and unauthorized chargebacks. Businesses must implement strong authentication measures, AI-driven fraud detection where possible and tokenization to reduce that risk and protect customer data.
Currently, Profeco supervises Mexico’s online stores, and are working to establish tighter trading standards in the country. The nonmandatory ordinance in 2018 “Mexican Norm for eCommerce” (NMX-COE-001-SCFI-2018) established that websites must have mechanisms to allow shoppers to complaint or solve their doubts about the products. It also gives guidance on publicity, consumer rights, return policies, and how to handle personal data. Although this ordinance is not mandatory, it does serve as a reference for entities that oversee eCommerce in Mexico.
Similarly, Hong Kong faces increased cybercrime threats due to its heavy reliance on online and cloud-based services. These threats include identity theft, phishing, and account takeovers. Given the city’s high use of digital wallets, merchants can deploy biometric verification, real-time transaction monitoring, and encryption technologies to ensure more secure digital payment experiences.
Consumer trust is paramount in both markets, and businesses that fail to offer secure, fraud-resistant payment solutions risk reputational damage and lost sales.
Market competition and localization needs
Both Mexico and Hong Kong have highly competitive eCommerce landscapes, making localization essential for success. In Mexico, cash-based payment solutions still play a role, particularly through Oxxo Pay and similar voucher-based systems that cater to unbanked consumers.
Increased volumes of debit cards and digital wallets are reshaping the market, requiring merchants to support multiple payment methods, rather than simply enabling any one localized service. Meanwhile, Hong Kong’s payment landscape is highly digitalized, with almost half of all eCommerce transactions being made via digital wallets in 2023.
Businesses should look to integrate QR code-based and contactless payment solutions, ensuring efficient transactions across AlipayHK, WeChat Pay, and PayMe. Additionally, Hong Kong’s high-income consumers expect fast, frictionless, multicurrency payment options, making crossborder payment optimization a priority.
The role of payment partners in mitigating challenges
To successfully navigate these challenges, businesses must partner with experienced payment providers that can offer localized solutions and regulatory expertise.
Nuvei helps businesses ensure compliance with tax regulations, data protection laws, and fraud prevention requirements in Mexico and Hong Kong. Through AI-driven fraud detection, real-time transaction monitoring, and secure payment processing, Nuvei helps merchants minimize risk and enhance consumer trust.
Additionally, Nuvei’s global payment network supports:
• 700+ payment methods
• Coverage in over 200 markets and local acquiring in 50+.
• Multi-currency processing, critical for cross-border commerce.
• Seamless digital wallet integration, catering to local preferences.
• Installment-based and alternative payment options, driving higher conversion rates.
By leveraging Nuvei’s deep market insights and advanced payment technologies, merchants can look to enter high-growth markets with streamlined operations, low checkout friction, and optimal payment experiences.
Future trends:
The role of technology in payments
As eCommerce and digital transactions continue to evolve, businesses will need to stay ahead of the curve. Innovations largely boil down to trust, speed and convenience for consumers. Real-time payments, AI-driven fraud prevention, and embedded finance are playing important roles in the sorts of payment experiences consumers prefer. These developments not only enhance experience for existing customers but can improve financial inclusion and enable more cross-border commerce.
Real-time payments and open banking
One of the most significant advancements in payments is the rise of real-time payment systems, which are having major impacts within financial ecosystems.
In Mexico, the government-backed SPEI-CoDi and DiMo systems (see ‘Mexico Trends’) have become key enablers of RTP. Meanwhile, Mexico’s Open Banking framework, aligned with the country’s Fintech Law, is fostering innovation in financial services, enabling businesses to offer personalized payment solutions through third-party integrations.49
In Hong Kong, the Faster Payment System (FPS) has become a key pillar of the digital economy, allowing instant, low-cost transactions across banks and wallets. The adoption of FPS has accelerated among businesses and consumers, with many leveraging the system for easy, compliant cross-border transactions.
49 ’LAW TO REGULATE FINANCIAL TECHNOLOGY INSTITUTIONS’, https://www.banxico.org.mx/regulations-and-supervision/ d/%7BBCED7618-FED0-6513-EB07-28D9B60CE0FC%7D.pdf
“Hong
Kong has an open economy with a liberal currency policy. With widespread access to credit and debit cards, payment behavior in Hong Kong is more aligned with that of developed countries.”
Xiaoxi Zhang Nuvei’s Head of Product for the APAC
region
Practices like open banking are growing, enhancing financial transparency and competition in the region. Businesses integrating open banking APIs can provide more customized financial services, improving customer retention and checkout experiences.
AI-driven fraud prevention
In Mexico, where online fraud rates are among the highest in Latin America, AI-powered security systems help detect unauthorized transactions, phishing attempts, and chargeback fraud. Fraud prevention tools leveraging machine learning algorithms enable real-time detection of suspicious activities, minimizing false declines and improving transaction security.
Similarly, Hong Kong’s status as a global financial hub makes it a target for cyber threats, including identity theft, account takeovers, and phishing scams . The widespread use of digital wallets has heightened the need for biometric authentication, tokenization, and AI-driven fraud monitoring. Businesses that invest in AI-powered fraud detection can enhance security, reduce chargebacks, and maintain customer trust.
Embedded finance and super-apps
Embedded finance and super-app ecosystems are redefining how consumers interact with financial services in Mexico and Hong Kong.
In Mexico, fintech companies like Stori, Finvero and Mercado Pago are embedding digital wallets, lending services, and insurance products directly into eCommerce platforms, providing consumers with integrated financial experiences. The rise of real-time payments and alternative financing options (such as installment payments and flexible credit solutions) has made embedded finance a critical driver of eCommerce growth.
In Hong Kong, super-apps like AlipayHK and WeChat Pay are reshaping digital commerce, offering consumers a one-stop platform for payments, lending, investments, and eCommerce. These apps dominate QR code-based and contactless payments, and businesses looking to expand in Hong Kong must ensure seamless integration with super-app ecosystems to enhance engagement and conversion rates.
Companies that can embrace these advancements will be able to optimize their payment solutions. Whether the priority is security, accessibility, or cross-border efficiency, those that digitize will be well-positioned to succeed in dynamic markets like Mexico and Hong Kong.
Conclusion: The Nuvei advantage in high-growth markets
Nuvei empowers businesses to navigate the complexities of markets like Mexico and Hong Kong, offering the infrastructure and expertise needed to scale.
With extensive coverage and localized solutions, Nuvei enables merchants to expand globally while maintaining frictionless, secure, and compliant payment experiences. Businesses can rely on Nuvei’s advanced payment capabilities, including:
• 700+ local and global payment methods, ensuring businesses can meet diverse consumer preferences.
• Coverage in 200+ markets and 50+ local acquiring markets, enabling seamless expansion into high-growth regions.
• ACH and Bank Transfers, providing efficient and secure payment processing.
• Support for cards, digital wallets, BNPL, and cryptocurrency, catering to modern and alternative payment trends.
• Merchant of Record services, simplifying compliance by handling tax regulations, crossborder transaction rules, and eCommerce policies.
• Advanced AI-driven fraud prevention tools, reducing chargebacks, cyber threats, and unauthorized transactions.
• Seamless cross-border transaction capabilities, optimizing currency conversion, multi-currency payments, and settlement processes.
These solutions are particularly relevant in Mexico, where real-time payments and financial inclusion are rapidly expanding, and in Hong Kong, where digital wallets and cross-border commerce dominate the eCommerce landscape. By integrating local acquiring solutions and real-time payment technologies, Nuvei enables merchants to maximize conversion rates and customer satisfaction.
For businesses looking to scale efficiently in high-growth markets, Nuvei provides the expertise, technology, and global reach necessary to drive success in Mexico, Hong Kong, and beyond. By leveraging Nuvei’s localized solutions and deep market insights, businesses can overcome regulatory barriers, enhance payment security, and unlock new revenue opportunities in some of the world’s most dynamic digital economies.
Methodology and approach
To develop the data and analysis on each market in the PCMI eCommerce Datapack, PCMI first compiles all publicly available data from official sources, including central banks, banking authorities, company financial reports, chambers of commerce, eCommerce associations, fintech associations, local press, market reports and government statistics, as well as data from the World Bank and affiliated international organizations.
The PCMI team analyzes the data with a critical approach, identifying the holes, errors, and inconsistencies in this data to prepare it for primary research. Then, PCMI conducts interviews with local eCommerce industry stakeholders to clarify, deepen, and streamline data collected via secondary research.
In the 2024 creation of this dataset, PCMI interviewed over 80 eCommerce executives including banks, acquirers, payment gateways, payment service providers, merchants, and consultants. Finally, PCMI conducts a rigorous analysis of the primary and secondary results, leveraging the perspective of our historical data collected since we first began building this dataset in 2015, to arrive at the final results.
The methodology takes a top-down approach, utilizing macro industry data and the perspective of industry aggregators (i.e. acquirers, PSPs) rather than a bottom-up approach, based on consumer surveys.
To the extent possible, the dataset is built using real, official numbers, such as official credit and debit card volumes, bank transfers and other official reporting of payment methods. Primary research combined with institutional knowledge are combined to make the needed estimations and assumptions to arrive at all breakdowns in the dataset. Projections are calculated based on the opinion of industry stakeholders and accounts for factors such as inflation, GDP growth and regulation.
PCMI avoids making projections based on the launch of new products
How do we define eCommerce?
In this data set, our eCommerce analysis covers all online purchases of goods and services, regardless of the device or payment method used.
Our analysis includes:
• Purchases made by local citizens using all locally-issued payment methods
• Cross-border purchases made with locally issued payment methods
• B2C and B2B purchases that move through an eCommerce checkout
• All product and service verticals, including travel, retail, and digital goods and services.
Retail is defined as: All physical products purchased directly from the merchant or marketplace
Travel is defined as: Travel services including airline tickets, car rentals, tour packages, hotels and AirBnB stays
Ride hailing and delivery is defined as: Digital services that include services including ride-hailing and delivery apps
Online gaming is defined as: Spend on online games or in-game purchases, which can be played via mobile, desktop, or a dedicated console. This does not include sports betting, online gambling or games of chance
Online streaming is defined as: Video and music streaming, typically purchased as a subscription
Other is defined as: Additional digital goods and services including sports betting and online gambling, online education, digital downloads, mobile top-ups, and recurring purchases such as monthly bills, insurance payments, school tuition payments, home ownership association fees, parking, taxes and government licenses and fees if they are paid online over an eCommerce gateway.
These expenses are not included if they are paid online via online banking or direct debit from a check or savings account.
Recurring payments to a credit or debit card are included, as are one-time payments over an online ACH portal such as Botón PSE in Colombia.
SaaS is defined as: The purchase of software delivery accessed via cloud services, rather than through the installation of said software on a computer or other device. Our data includes SaaS purchases made via an online website/checkout process, including subscription and recurring payment models, i.e. Microsoft Office, Slack, Hubspot, Canva, Dropbox, etc. These may be used for both consumer and business purposes and both are captured in our data.
We do not include SaaS purchases that are not made through an official online checkout, such as invoice payments via online banking or wire transfer.
All locally issued payment methods including:
• Locally issued credit and debit cards, online bank transfers, cash payment platforms such as Oxxo in Mexico or Fawry in Egypt, digital wallets such as PayPal, MercadoPago, ApplePay, cash on delivery, and other miscellaneous payment methods.
Please note the following definitions:
Cash Payment is defined as:
A payment platform that enables a shopper to make an online order, receive a bar code or unique PIN and use that bar code or PIN to make the payment in cash at an affiliated retail location. Such platforms often allow payment using an online bank transfer. Examples include Oxxo in Mexico and PagoFácil in Argentina
Digital wallet:
PCMI defines a digital wallet as a payment method that stores any funding source on file, including a credit card, debit card, bank account, or stored balance, and uses that funding source to remit payment.
eCommerce volume falls into the digital wallet category if the wallet brand is selected at checkout, even if a different funding source (such as a credit card) is ultimately selected as the funding source. Examples include staged wallets such as PayPal, TigoMoney and MercadoPago.
Please note: Tokenized card wallets, or passthrough wallets, such as ApplePay, are included under credit and debit card volume.
Bank Transfers:
When applicable, PCMI names the specific bank transfer scheme, such as UPI or Pix. If the bank transfer scheme is selected at checkout, this volume is classified as the bank transfer scheme, not the bank or digital wallet ultimately used to execute the payment.
BNPL:
is defined as a payment button offered by a BNPL fintech that enables the shopper to finance the purchase at the time of checkout, with multiple payment methods, including credit cards, debit cards, bank transfers or cash. BNPL offerings that take place within a wallet ecosystem (such as MercadoCrédito) are not considered here.
Hybrid payment methods:
Payment methods that group several of these payment methods under one brand are specified by their name, i.e. PagoEfectivo, Fawry.
Our analysis excludes:
• Payments made by international visitors with internationally issued payment methods
• P2P payments
• Sales made over social media and paid for in cash or using an A2A payment solution
Country specific notes
• In South Africa, InstantEFT is considered within bank transfer payment methods OZOW and Stitch.
Other technical specifications
• Unless otherwise stated, all currency is expressed in US dollars.
• Please note that numbers contained in figures and tables may not add due to rounding. Please note, our numbers may not include sports betting or online gambling volume paid via cash voucher or other volume that falls outside the purview of card acquirers and bank transfers.
