OXXO Pay: a guide to Mexico's leading payment method

OXXO Pay is Mexico’s leading cash-based payment method for eCommerce transactions. It offers a vital bridge between the digital marketplace and the Mexican population.

With over 87 million people in Mexico lacking a bank account, many traditional online payments remain out of reach. OXXO Pay addresses this gap by enabling customers to shop online and pay in cash at any OXXO convenience store nationwide.

The OXXO payment system is essential for consumers and businesses seeking to expand their reach across the Mexican market. It empowers unbanked individuals to participate in the digital economy without needing a credit or debit card.

In this article, we explore how OXXO Pay works, why it has become so popular among the unbanked population, how merchants can integrate it into their checkout systems, and the key advantages it offers.

What is OXXO Pay?

OXXO Pay is an offline payment method that allows customers to shop online and pay in cash at any OXXO convenience store. It was designed for individuals without access to traditional banking.

As almost 70% of Mexicans do not have a bank account, OXXO Pay has emerged as a preferred payment method in the country. In 2021, OXXO accounted for almost 2 billion of the total Mexican digital commerce sales volume.

Customers can select OXXO Pay at checkout after choosing their products or services. They are subsequently given a unique reference code that can be taken to any OXXO store to complete the payment in cash. Once the payment has been finalized, the merchant receives a notification to process the order.

The infrastructure of OXXO Pay is supported by strategic partners like EBANX and Conekta, which provide the payment technology that enables real-time confirmations, secure fund transfers, and seamless integration for businesses.

Where is OXXO Pay used?

Launched in 2017, OXXO Pay is exclusively available in Mexico. It was developed by OXXO, one of the convenience shop chains in Latin America. Its primary goal is to provide an accessible payment method for Mexicans who do not have a bank account or who prefer to pay in cash.

OXXO Pay is available at over 20,000 OXXO store locations throughout Mexico. It connects with 15 major banks in the country, including BBVA, Santander, and Banorte.

How do I pay with OXXO Pay?

#1. Payment Initiation: Each payment transaction begins when a customer chooses OXXO Pay at checkout. They subsequently receive a unique 14-digit reference code or barcode, either on-screen or via email.

#2. In-Store Payment: The customer visits any of the over 20,000 OXXO stores across Mexico, presents the reference code or barcode to the cashier, and makes the payment in cash. Some locations may also accept card payments, depending on their setup. Upon payment, the customer receives a printed receipt as proof of the transaction.

#3. Payment Confirmation: The confirmation process of OXXO payments depends on the integration method:

• Real-Time Confirmation: If the merchant integrates with a payment gateway that supports real-time confirmation, like Conekta, the payment status is updated automatically.
• Standard Confirmation: Without real-time integration, payment confirmation can take up to one business day.

#4. Fund Transfer: Once the customer finalizes the payment and the payment is confirmed, the payment gateway initiates the fund transfer to the merchant’s account. A standard payment via OXXO Pay takes up to one business day, ensuring timely delivery and reconciliation.

Which merchants accept OXXO Pay?

The OXXO payment process can be used for a variety of transactions and online purchases. With an extensive network of convenience stores across Mexico, customers in both urban and rural areas benefit from reliable, nationwide access to a trusted payment method.

Many local and international merchants, especially those integrated with EBANX or similar gateways, accept OXXO Pay.

Online Shopping: From fashion brands to electronics stores, event services and travel booking platforms, many eCommerce merchants offer OXXO Pay at checkout. Some e-learning platforms, such as Udemy, also accept OXXO Pay as a way to democratize access to education.

Streaming Services & Recurring Payments: OXXO Pay accounts for 15% of the payment method share in streaming services, emphasizing its relevance for recurring payments. Its cash-based model allows users to maintain active subscriptions with platforms like Netflix and Spotify. Many telecom providers, such as Telcel and Movistar, also support OXXO Pay for the recharge of mobile plans.

Utility Bills: Many households use OXXO Pay to settle electricity, water, and internet bills. This provides an accessible offline payment method for essential services in areas with limited access to digital banking.

Insurance & Financial Services: Some insurance and fintech companies accept OXXO Pay for premium payments or loan repayments, allowing more inclusive access to financial products. For example, Kueski, a Mexican lending platform, enables OXXO Pay for loan repayments.

Is OXXO Pay a trusted payment method?

OXXO Pay is considered a highly reliable and secure payment method, due to various reasons:

• Brand Reputation: OXXO Pay is part of the OXXO brand, which has been operating across Mexico for decades.
• Low Fraud Risk: Since customers must pay in cash, there is a low risk of chargebacks, fraud or unrecognized payments associated with OXXO payments.
• Real-Time Confirmation: Thanks to integration with gateways like Conekta, many transactions can be confirmed in real time, reducing delays.
• Convenience: With over 20,000 physical store locations nationwide, Mexican customers enjoy convenient and easy access to payment points.

However, OXXO payments do face certain limitations. Since payments are cash-based, refunds are generally not available via OXXO Pay. In addition, if the merchant does not integrate with a gateway that supports real-time notifications, payment confirmation may take up to one business day.

Why is OXXO Pay so popular among the unbanked population?

OXXO Pay addresses a significant gap in the Mexican financial system. According to EBANX, 68% of the population does not have a bank account, and only 15% have access to a credit card. This means that millions of Mexicans are excluded from traditional eCommerce transactions.

OXXO Pay is popular because it only requires a cash payment and a reference number, without the need for a bank account or credit/debit cards. It is accessible nationwide and trusted by consumers in both rural and urban areas as a safe alternative to entering card details online. OXXO Pay promotes financial inclusion and enables Mexican customers to participate in the digital economy.

How businesses can integrate OXXO Pay into their checkout systems?

The integration of OXXO payment technology into your eCommerce platform is a strategic and seamless process:

#1. Create an account: Merchants must first register an OXXO account and complete the initial setup. OXXO provides technical guidance throughout the process, as well as the hardware needed for system integration.

#2. Partner with a Payment Gateway: The second step is to choose a payment service provider like EBANX or Conekta, which supports OXXO Pay. Most gateways also offer plugins for platforms like Shopify and Magento, making eCommerce integration even easier.

#3. API Credentials & Integration Keys: Once onboarded, your payment service provider will offer the API documentation and credentials for integration. Businesses can personalize the customer-facing UIs for OXXO checkouts and add features such as brand logos and custom colors.

#4. Configure Checkout: Update your checkout page to offer OXXO Pay as a payment method and handle payment notifications. Businesses must also ensure that all line items are listed in the MXN (peso currency). They can also configure an 'expires_after_days' parameter to specify how long the payment voucher will be valid.

#5. Test the Flow: The final step is to test the OXXO Pay flow and ensure the system generates the voucher with its unique reference code correctly and handles payment notifications without errors.

Beyond the technical features, businesses must stay up to date and comply with the Mexican financial regulations related to cash-based payments. They must also provide customer support in Spanish to ensure a seamless payment experience.

OXXO Pay key features for businesses

The diverse and flexible payment method offers consumers an array of beneficial features, including:

Broader Customer Base: By offering OXXO Pay, merchants have access to a broader customer base, especially among the unbanked population.

Improved Payment Security & Reduced Chargeback Risk: OXXO Pay transactions offer merchants a secure payment solution. Because payments are made in cash, there is virtually no risk of chargebacks or fraud.

Increased Conversion Rates: Customers are more likely to complete a purchase when they see familiar and trusted payment methods. This is especially true for OXXO Pay, being a household name which is deeply ingrained in Mexican society.

Enhanced customer satisfaction: OXXO Pay supports local language and currency, enhancing the customer experience and increasing satisfaction.

Better brand perception: By offering a preferred payment method like OXXO Pay, businesses demonstrate their commitment to catering to local payment preferences and economic conditions.

How does OXXO Pay expand ecommerce access & boost conversion rates?

OXXO Pay enables eCommerce for consumers who could otherwise not participate due to a lack of banking access.

In 2024, cash-based payments in Mexico reached USD 6.1B, demonstrating a strong consumer preference for this payment method. Merchants who add OXXO Pay as a payment option experience an increase in conversion rates.

Conclusion

In Mexico, OXXO Pay is not just an offline payment system for online transactions, but a bridge to financial inclusion. OXXO Pay offers an essential payment solution for both consumers and businesses.

By facilitating cash payments for online purchases through a network of OXXO stores nationwide, it empowers consumers without access to traditional banking services.

The adoption of OXXO Pay allows merchants to tap into a broader customer base, particularly in regions where digital banking is limited. Incorporating OXXO Pay into the checkout process is a strategic move for all merchants aiming to expand their reach and inclusivity in the Mexican market.

Learn more about how Nuvei's alternative payment methods (APMs) services can help you grow your business in Mexico.