This post was originally published on this site.
During my years working with entrepreneurs, either in accelerators, workshops or simply talking with small business owners, I’ve noticed something that repeats itself again and again: we’re building digital stores, investing in marketing, improving our packaging, and even learning how to run ads … but very few of us truly understand how our customers think about money.
And I don’t mean complex financial models or advanced accounting. I mean the basics. What is a debit card? What is a credit card? How does interest work? What does “monthly installments” actually mean?
It sounds simple, but in Mexico, this basic knowledge is not as common as we assume. And if our customers don’t understand the tools that allow them to pay, then our digital businesses will always face friction.
Today, I want to talk about that: the silent obstacle between entrepreneurs and real, scalable e-commerce growth financial literacy.
The Basics Are Still … Not So Basic
Let’s start with something that many entrepreneurs assume: If someone has a credit card, they know how it works.
The truth is more complicated.
A study on financial education in Mexico showed that only 51.8% of credit-card users could answer a basic question about how interest is calculated. Consistent with this, many people believe the “minimum payment” means they are up to date, or that installments are free money, or that a debit card works the same as a credit card.
And when someone doesn’t understand how a tool works, it’s normal that they would feel afraid to use it, especially online. That fear becomes distrust, and that distrust becomes the message we all receive as entrepreneurs: “¿Te puedo hacer transferencia mejor?” “Can I just make a bank transfer instead?”
If you’re reading this, I’m sure you’ve heard that phrase many times.
Mexico Is Digitalizing … but Still Thinks in Cash
At the same time, Mexico is moving fast toward digital payments. From 2019 to 2022, the use of credit cards grew 75%, and debit card usage grew 50%. Millions of Mexicans have adopted digital banking, fintech wallets, and online shopping. E-commerce continues growing at double-digit rates year after year.
But here is a reality we cannot ignore: 51% of the population is still not formally banked, and 82% still prefer using cash as their main payment method.
That’s not just a statistic. It’s a cultural pattern.
People feel safer paying with what they have “in their hand.” Even large companies understand this. Amazon, for example, still allows customers to buy online but pay in cash at convenience stores. Why? Because the customer doesn’t fully trust entering card details in an online checkout.
As entrepreneurs, we live in this middle ground: a country that is modernizing, but at a rhythm that still depends on financial trust.
Is E-Commerce Actually Profitable?
This is the question many entrepreneurs ask themselves when they face abandoned carts, messages on WhatsApp, and customers who prefer deposits.
My honest answer is: Yes, but only if you understand the financial behavior of your customer.
E-commerce is growing massively. In 2024, online sales in Mexico reached MX$789.7 million (US$ 43.4 million), a 20% increase from the previous year. More than 67 million Mexicans shop online. E-commerce already represents 15.8% of all retail sales in the country.
But growth alone does not guarantee profitability. Profitability comes from reducing friction and friction today is not only about logistics or technology. It’s about trust.
If your customer does not understand how a payment method works, they won’t use it.
If they don’t trust the process, they won’t complete the purchase.
And if they don’t feel safe, they will message you privately instead of paying through your website.
Payment Behavior in Mexico: A Reality Check
Let me put it this way: You can have the most beautiful website, the best photos, the most creative branding, but your customer will still ask for your bank account number. It’s not personal. It’s cultural.
Here’s what really happens:
Many people think paying with a card online will lead to fraud.
Others don’t know they can claim unauthorized charges.
Some don’t understand the difference between “authorized payment” and “captured payment.”
And a big percentage simply doesn’t trust technology enough yet.
So they choose transfers. They send you screenshots. You verify manually. And your e-commerce is no longer automated. It becomes customer-service-heavy. It’s not wrong. It’s just not scalable.
The Opportunity: Educate While You Sell
If financial literacy is the obstacle, then the differentiator becomes clear: educate your customer. And no, I don’t mean teaching them finance on a blackboard. I mean simple, practical communication:
How does paying with a card work?
Why is it safe?
What happens if a charge is not recognized?
What are the advantages of automated payments?
How do installments really function?
When customers understand, they trust. When they trust, they convert. And when they convert, your e-commerce becomes profitable.
I always say this: We can’t assume our audience knows everything we know. Sometimes the sale doesn’t fall through because of the price or the product. It falls through because of uncertainty.
What Entrepreneurs Can Do Right Now
Here are some practical actions:
- Offer multiple payment methods: card, transfer, wallets, cash options. Explain each method clearly in your checkout and social media. Use simple language, not financial jargon. Track where customers abandon the process.
- Reduce the number of steps required to complete a purchase.
- Educate through content: reels, stories, FAQs, infographics.
Little by little, you will build a customer base that trusts digital payments and trusts you.
Mexico has everything to become a powerful e-commerce nation: a young population, growing digital adoption, strong fintech innovation, and entrepreneurs full of ideas.
But no technology grows faster than people’s understanding. And before we can scale, automate, or dream big, we must address one simple truth: Financial literacy is not just a social issue, it’s a business issue.
If we help our customers understand money, they will help us grow our businesses. That, to me, is the perfect example of a win-win.