In 2024, more and more cross-border e-commerce sellers are setting their sights on the potential Mexican market.

According to the report 'Online Retail Research,' the e-commerce market in Mexico has maintained double-digit growth for five consecutive years, reaching 658 billion pesos in 2023. This represents a year-on-year increase of 24.6% compared to the previous year, making Mexico the fastest-growing e-commerce market in the world, ahead of other active e-commerce regions such as the Philippines, Malaysia, India, Colombia, and Indonesia.

As the largest e-commerce platform in Latin America, MercadoLibre has become a popular choice for cross-border sellers looking to tap into the Mexican market. However, to establish a strong foothold in this opportunity-rich market, localized operations are key. To help cross-border sellers more efficiently achieve localized operations, PhotonPay has now launched a local collection service for MercadoLibre Mexico, offering a secure, compliant, high-quality, and efficient integrated local payment solution!

Mexico: The fastest growing online shopping market in the world

The first step to layout Latin America is to find the right market. If it was five years ago, Brazil may be the best choice of target countries for enterprises to go overseas, but in 2024, perhaps Mexico is the most favorable choice to test the waters of the Latin American market. This can be seen from the following two points:

Firstly, as the second-largest economy in Latin America and one of the countries with the most free trade agreements in the world, Mexico has become one of the beneficiaries of the 'nearshoring' model during the global supply chain reshaping process. According to data, Mexico attracted $36.58 billion in foreign direct investment (FDI) in 2023, the highest level on record. These investments and agreements have fueled Mexico's economic growth, further boosting consumer spending power. According to David Geisen, Vice President of MercadoLibre, the company’s revenue in Mexico grew by 51% year-over-year in the fourth quarter of 2023, with an annual revenue growth of 32%, making it the fastest-growing market in Latin America.

Secondly, Mexico's geographic location is highly advantageous. It borders the U.S. to the north and connects to Latin America in the south. Breaking into the Mexican market not only opens up opportunities across Latin America but also provides a strategic gateway to the U.S. market. For sellers, the Mexican market presents significant opportunities that are well worth pursuing.

MercadoLibre：The best choice for tapping into the mexican market

Founded in 1999 and headquartered in Buenos Aires, Argentina, Mercado Libre is one of the most dynamic and innovative e-commerce platforms in Latin America. After years of deep involvement in the Mexican market, Mercado Libre has achieved numerous successes:

1. According to a report on corporate reputation in Mexico released by the reputation monitoring agency Merco, Mercado Libre ranked eighth among the top 100 companies in Mexico and became the e-commerce company with the best reputation in the country. Notably, this marks the second consecutive year that Mercado Libre has made it into the top ten of this list.

2. David Geisen, the CEO of Mercado Libre Mexico, announced that Mercado Libre has become the second most used shopping search engine in Mexico, only behind Google.

3. According to Mercado Libre's first-quarter financial report for 2024, the company’s net revenue increased by 36% year-over-year, reaching $4.3 billion. Operating income rose by 29% to $528 million, while net income saw a significant jump of 71% to $344 million. Additionally, 385 million items were sold during the quarter, marking a year-over-year increase of 24.6%, with 76 million more items sold compared to the same period last year. The Mexican market alone experienced a 28% growth.

American market and tap into Mexico, PhotonPay has newly launched the "Mexico Local Payment Service," offering a secure, compliant, and high-quality integrated local payment solution!

1. Partnership with Reputable Financial Institutions for Security and Peace of Mind
In collaboration with internationally renowned financial institutions, we help you open a secure and compliant local payment account in Mexico online. With a one-click application process, you can get your account number as quickly as the same day.

2. Receipts in Original Currency, Reducing Costs
Directly connected to Mexico's local clearing network, funds are received in the original currency, reducing exchange losses. The fastest transaction time is T+0, effectively helping businesses save costs.

3. One-Stop Payment and Collection, Efficient and Convenient
Manage global payments, global collections, global payouts, multi-channel fund distribution, and currency exchange all from a single dashboard. Enjoy efficient, convenient, and compliant global payment services.

How to use PhotonPay local collection service for Mercado Libre Mexico?

1. Register for a PhotonPay Account

Go to the PhotonPay website (https://www.photonpay.com/), sign up for an account, and complete the identity verification.

2. Apply for a Mexican Local Collection Account

Log in to the PhotonPay merchant portal, and then click on Payments > Global Accounts > Apply for Global Account. Choose the purpose of the global account you need, select the country, currency, and bank name, and fill in the account nickname.

3. Add a Mercado Libre Store

After successfully creating a global account, you can link the account to your store/application. Click on 'Link a Store,' select the Mercado Libre platform, and fill in the 'Store Name' & 'Store URL' information.

4. Go to the Mercado Libre platform to link the account

Once your PhotonPay payment account is linked, you can start your journey to tapping into the Latin American market.

If you already have a PhotonPay account manager, you can consult them about global payment solutions.