Mexico Business Forum 2023 E-commerce & Retail - Impact Report

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With the advent of COVID-19, businesses worldwide had to find innovative and disruptive ways to continue their operations, albeit remotely and with customers who did not know what to expect. In just three years, the e-commerce and retail industry has evolved by leaps and bounds, with companies transforming through multiple payment options, efficient returns and data analysis to grow their market shares.

With the advent of client-centricity and the need to resort to online sales channels, retailers understood that flexibility is one of the most crucial factors in the game. In these circumstances, understanding how consumers behave has been the key to staying relevant in the marketplace. To meet customer expectations, companies are focusing on three key areas: personalization, convenience and consistency.

Customers are also more demanding than ever and require fast, secure and convenient payment options. Traditional payment methods such as cash and checks are gradually being replaced by digital payment tools, including credit and debit cards, mobile payments and e-wallets. In addition, a new generation of payment aggregators and platforms is emerging, offering new payment modes and services that respond to the changing needs of businesses and customers.

Artificial intelligence is revolutionizing the industry. While this technology is unlikely to replace humans, it has come to streamline and improve processes, while providing users with customized experiences.

At Mexico Business Forum 2023 E-commerce & Retail, industry leaders highlighted key trends and technologies for businesses to stay ahead. As the premier event in the e-commerce and retail sector, it provided an ideal space for key decision-makers to share their perspective and discuss the latest trends affecting the sector.

127 companies

21 speakers

207 conference participants

Breakdown by job title

8th Edition

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3,152 visitors to the conference website

185 participants

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1,277

• 99minutos

• Adyen

• Akamai Technologies

• Amaras

• ANAFARMEX

• Another Company

• Auronix

• AVIS

• Bachoco

• Banngu

• Bayer

• Bestseller

• Betterware de México

• Bigbox

• Bodesa

• Bulgari

• By apple cosmetics

• C&A

• Calzzapato

• Cavimex

• Chanel

• Cintacor

• Citizen de México

• ClearSale

• CMR México

• Cohmedic

• Coppel

• Coretava (Formerly Gamiphy)

• Dawa

• Deepler

• DEUNA

• Digital@FEMSA

• Distribuidora de Medicamentos Santa Clara SA de CV

• Don Colchon

• doto.com.mx

• Ecomsur MX

• Electrolux

• Embajada Corea del Sur

• Emma

• ETAM

• Farmacias Benavides

• FedEx Express

• Feedbox/LotusUp/Agile

• Ferretería Tauber

• Fundación haciendas del mundo maya / ensamble artesano

• Gandhi + Others

• Geotab

• Gerzo Administración SA de CV

• GoFarma

• Goldenstar

• Grupo Morsa de México

• HEB

• Hershey

• Independiente

• INDRA SISTEMAS MEXICO S.A. DE C.V.

• Inswitch

• iSana Health

• ISITA

• It Globers

• Jüsto

• JeffreyGroup

• Kanaus

• Kellogg Company

• KIOSKO

• Kushki

• Lazzar Uniformes

• Legalario

• Linio

• Lululemon

• Luxottica

• Martí

• MDR

• Meibi

• Mercado Libre

• Miniso

• Miranda Partners

• Moncler

• Mueblerias Valdez Baluarte

• Muy mucho Mexico

• NEW ERA CAP MEXICO -LATAM

• New Zealand Trade and Enterprise

• NovoPayment

• Nuvei

• OKAutopartes

• Onest Logistics

• Ontario Government

• Pandora

• PERNOD RICARD

• PLACENCIA MUEBLES

• Prosa

• Proscai

• Rappi

• Reevolution

• Resulting

• Reuse

• Reversso

• Richemont de Mexico S.A.deCV. / IWC Schaffhausen

• Riot Games

• San Pablo farmacia

• Signify Mexico

• Solu

• Stripe

• Suprema Corte

• Swarovski LATAM

• Swatch Group

• T.Taio

• Taller Maya

• Teamwork Commerce

• THE BODy SHOP

• The Home Depot México

• Timberland, VFC Company

• TREGGO

• Uber Eats

• VANS A VF COMPANy

• Verifone

• Vesta

• Vinneren

• Virtual Llantas MX

• VTEX

• Walmart

• Whirlpool

• Willscot México

• ZEGNA

• Zendesk

• Zenki

• Zingara

• Zubale

09:00 TRANSLATING CUSTOMER BEHAVIOR INTO CONCRETE ACTIONS

Moderator: Marco Di Santo, Bvlgari

Panelists: Kelly Kroger, C&A Mexico

Sofía Escamilla, The Body Shop

Teresa Gutiérrez, Rappi

10:00 HOW CAN THE OMNICHANNEL JOURNEY EXCEED CUSTOMER EXPECTATIONS?

Moderator: Juan Montes, SAP Customer Experience

Panelists: Bernardo Bazúa, Coppel

Pablo Cáceres, Emarsys

11:00

NETWORKING BREAK - AI-POWERED 1:1 MEETINGS

12:00 E-COMMERCE RETURNS: COST OR OPPORTUNITY?

Moderator: Fernando Del Río, Linio

Javier Dolcet, Dawa

Luis Pedraza, Mercado Libre

Benjamín Santa María, Reversso

13:00 DATA AS THE CORNERSTONE OF RETAIL STRATEGY

Moderator:

14:00

15:00

15:00

16:20

Ezequiel Bagnardi, Pandora

Diego Halffter, Jüsto

Eduardo Vecchio, Zingara Swimwear

Marco Gelosi, Swarovski

NETWORKING OPPORTUNITY - AI-POWERED VIRTUAL 1:1 MEETINGS

NETWORKING OPPORTUNITY - AI-POWERED IN-PERSON & VIRTUAL 1:1 MEETINGS

WELCOME COFFEE BREAK

THE FUTURE OF AI: WHERE AI IS HEADED AND HOW IT WILL IMPACT CX

Speaker: Isaac Solís, Zendesk

16:40 THE INTERSECTION OF AI AND ECOMMERCE PAYMENTS: OPPORTUNITIES AND BENEFITS

Speaker: René Salazar, Stripe

17:00 FUTURE OF PAYMENTS: LEGACY METHODS, AGGREGATORS AND PAYMENT TYPES

Moderator: Ricardo Arias Rivera, Independent Consultant

Anna Aguilar, Adyen

Erick MacKinney, Kushki

Eduardo Santillán Del Río, Verifone

18:00 IN-PERSON NETWORKING COCKTAIL

TRANSLATING CUSTOMER BEHAVIOR INTO CONCRE TE ACTIONS

The retail and ecommerce market in Mexico is fiercely competitive, with businesses vying for customer attention and loyalty in an ever-changing landscape. In this hypercompetitive environment, long-term winners will be determined by their ability to leverage consumer big data to develop increasingly personalized shopping experiences across multiple channels, according to industry leaders at Mexico Business Forum 2023.

“Having a 360-degree view of a consumer is not enough to develop a personalized and consistent shopping experience. In today’s market, retailer success comes from understanding the why behind the big data of consumer behavior,” says Sofía Escamilla, Country Manager, The Body Shop. Delving deeper into the motivations and desires that drive consumer behavior across segment groups will help companies develop more strategic business processes.

Mexico’s e-commerce market has experienced accelerated growth in recent years, driven in large part by greater social adoption and the increasing availability of digital technologies. As the market continues to expand, businesses are recognizing the need for more advanced big data analysis skills to keep pace with the demands of today’s globalized economy. In particular, the ability to collect and analyze large volumes of consumer data across available channels has become a critical factor in driving success, says Marco Di Santo, Managing Director Mexico, Bvlgari. By leveraging this data, businesses can gain a deeper understanding of their customers’ preferences, behaviors and needs, and use

this knowledge to develop more effective strategies and personalized experiences. This capacity will be central to companies’ ability to “replicate and or adjust channel user experiences as they develop an omnichannel business strategy,” says Kelly Kroger, CEO, C& A Mexico.

As businesses in Mexico increasingly recognize the importance of big data analysis, they are turning to technology to make sense of the vast amounts of consumer data they collect. Artificial intelligence (AI) and machine learning algorithms are among the most powerful tools available, enabling businesses to analyze customer behavior and preferences on a massive scale. By using these tools, companies can develop more personalized experiences for their customers, tailoring everything from product recommendations to payment options based on individual preferences. However, the use of these technologies requires a significant amount of expertise and knowledge, as well as the ability to manage and analyze large data sets. To take full advantage of these capabilities, organizations must upskill and reskill their employees, providing training in data analysis and other relevant areas, underscores E scamilla.

“Analysis skills are still underdeveloped across the market, highlighting the need to modernize skills to correspond with the adopted technology,” says Kroger. Remote education is a tool that can be leveraged to achieve this, allowing for a collective timeline.

In addition to driving personalized experiences, technology can also help organizations refine their overall business strategy, particularly when it comes to internal back-end processes and payment options. For example, fashion companies with e-commerce platforms need to have clothing items ready ahead of time to take pictures of the merchandise, which will allow them to launch new seasonal products in

“Having a 360-degree view of a consumer is not enough to develop a personalized and consistent shopping experience. In today’s market, retailer success comes from understanding the why behind the big data of consumer behavior”

Sofía Escamilla

Country Manager | The Body Shop

parallel to brick and mortar stores. This implies deploying an strategic logistical coordination that allows companies to ensure the customer receives consistent, indistinguishable, quality experiences. Meanwhile, companies are cognizant that they need to provide payment services that fit their targeted demographic, which is a key component to a frictionless experience. Companies like Rappi, which operate on three business verticals (consumers, partners and delivery people), require careful monitoring to ensure consistent quality of service for all stakeholders. Overall, companies should be striving to “align business processes with consumer needs and expectations for greater economies of scale,” says Teresa Gutiérrez, Country Manager, Rappi.

All in all, in Mexico’s hyper-competitive retail and e-commerce market, investing in emerging technologies is critical to success. With globalization and faster shipping

dictating the need for seamless operations across borders with different tax systems, businesses must adapt to keep pace with the competition. Moreover, sustainability and blockchain technology are emerging as important differentiators in the eyes of increasingly environmentally conscious consumers. Therefore, even if a complete strategy is not yet in place, retailers cannot afford to wait and must invest in technologies now to remain competitive. Those who hesitate to invest in emerging technologies risk being left behind in the medium-term, as the market continues to evolve at a rapid pace. It is crucial to understand that perfecting a technology adoption strategy is an ongoing process, and waiting for the perfect plan can lead to a late start and missed opportunities, says Gutiérrez. The key is to start investing in technology now and iterate along the way, embracing the agile mindset that is essential to success in today’s retail and e-commerce landscape.

HOW CAN THE OMNICHANNEL JOURNEY EXCEED CUSTOMER EXPECTATIONS?

In today’s rapidly evolving retail landscape, customers expect a seamless, hassle-free shopping experience across all channels. Omnichannel marketing, which involves integrating all channels to create a unified experience, is now essential for businesses to stay competitive. But to meet customer expectations, businesses must focus on three key areas: personalization,

convenience and consistency. However, before launching an omnichannel approach, experts suggest keeping in mind the cost margins and developing a clear strategy.

“By 2024, e-commerce is expected to double compared to 2020. This channel is growing widely in Mexico. The country

is now in the global top 10 in e-commerce. Therefore, it is important to rethink how we are carrying out our operations,” says Juan Montes, Vice President and Country Head, SAP Customer Ex perience.

Montes explains that creating an omnichannel presence comes with challenges, such as inventory logistics. Some companies are beginning to create special warehouses to specifically supply online channels. Additionally, there may be friction within the organization regarding operational challenges that could create conflicts between departments.

Customers want to feel valued and recognized across all channels, and businesses can achieve this by leveraging data to deliver personalized experiences. Industry leaders recommend identifying the most appropriate marketing channel for each segment of a company’s customer base. According to Pablo Cáceres, Head of Revenue Latin America, Emarsys, while data is useful, its use comes with challenges regarding privacy and responsible use. He emphasized the Understanding what each customer means to each different marketing channel is also essential, adds Cáceres.

“It is important to make sense of data to make informed and effective decisions. Data can help us get to know the customer behind each purchase. However, the challenges of its use have to do with data protection. We must be responsible and provide confidence to the customer so they can trust us with their data and we can provide them a more personalized experience,” says Cáceres.

Convenience is also crucial to exceed customer expectations in the omnichannel journey. Customers want to review items pre-purchase and businesses must provide flexible options for browsing, purchasing and returning products. However, experts suggest keeping in mind the cost margins and developing a strategy that prioritizes the marketing channels that make the most sense before transitioning to an omnichannel approach.

There are numerous challenges when launching a successful omnichannel presence, such as “the return of the consumer to the physical world and their preference of on-demand access to retail. Omnichannel has many challenges because physical stores will continue to exist, but adding more points of contact with the customer each time makes operations more complex. Each customer expects a different experience from each channel,” says Bernardo Bazua, Director of Omnichannel and Digital Strategy, Coppel. “On the other hand, inventory logistics are a major challenge. Where should the products sold through each channel be stored?”

Consistency is another key to create an omnichannel journey that exceeds customer expectations, as customers expect a consistent experience across all channels. Whether in-store or online, businesses must ensure that product information, pricing and promotions are consistent across all channels to build trust. Additionally, businesses must provide a seamless transition between channels, such as allowing customers to start their purchase online and complete it in-store.

Juan Montes Vice President and Country Head | SAP Customer Experience

To develop online operations, businesses must be well aware of their profit and loss (P&L) margins. “Many digital operations were not profitable at some point,” warns Bazua. “It is important to have a detailed P&L because digital operations add costs for acquisition, marketing and logistic expenses. The more handling the merchandise has, the higher the costs of these operations can be. If you do not

“By 2024, e-commerce is expected to double compared to 2020. This channel is growing widely in Mexico. The country is now in the global top 10 in e-commerce. Therefore, it is important to rethink how we are carrying out our operations”

have a business with healthy margins of acquisition and cost, profits could be n egative.”

According to Montes, it is important to keep an eye on client acquisition costs, as many customers seek a personalized experience so creating customer loyalty becomes essential. To a certain extent, it is no longer useful to grow for the sake of growth in digital channels but to also serve the customer base that makes sense for each business, says Cáceres.

To exceed customer expectations in the omnichannel journey, businesses must think about creating good experiences for customers. Businesses can create a seamless omnichannel journey that meets and exceeds customer expectations by leveraging data to create personalized experiences, providing flexible options and ensuring consistency across all channels. “It is important to understand what customers expect from you and your sales channels to ensure a memorable customer experience,” says Bazua.

E-COMMERCE RETURNS: COST OR OPPORTUNITY?

The rise of e-commerce has transformed the retail industry, allowing customers to shop from their homes and enabling businesses to reach a wider audience. However, as e-commerce grows, so does the number of product returns. E-commerce returns are a complex issue, with some companies seeing them as a costly burden and others as an opportunity to create a positive customer experience.

Returns are both a cost and an opportunity, experts say. To optimize their benefits, companies should focus on reducing the frequency of returns as they represent a cost, while ensuring customer satisfaction, says Luis Pedraza, Marketplace Lead, Mercado Libre Mexico. Clients expect that companies deliver their products in a quick and efficient way and they expect the same for their returns. “At Mercado Libre, we have the option to deliver in less than 24 hours in 16 Mexican cities and with the protected purchase system, users can return their products no matter the

reason. However, this was based on our own analysis and companies must start studying the reasons behind the returns made by their own clients,” Pedr aza adds.

Returns can pose a high cost for retailers, particularly to those that offer free returns. In addition to the cost of shipping and restocking returned items, there is also the potential loss of revenue from returned items that cannot be resold. However, returns can also be an opportunity for retailers to improve customer loyalty and increa se sales.

Retailers can turn returns into opportunities by focusing on customercentric strategies. While these strategies can represent additional costs initially, they could pay off in the long term and turn into an opportunity, says Benjamín Santa María, CEO and Co-Founder, Reversso. Additionally, retailers can use returns to gather valuable feedback on their products and services, which can

help them improve their offer and better meet custo mer needs.

Companies cannot stop offering convenience to users during the return process, as it plays a major role in customer experience and can increase their shopping frequency, explains Javier Dolcet, CEO and Co-Founder, Dawa. “It does not mean free returns for everyone. In this sense, companies can lean on thirdparty carriers like 99minutos to offer different return solutions apart from return in-store,” add s Dolcet.

To improve their return policy, companies must start working on omnichannel solutions, says Dolcet. This process can be easier for companies that began their omnichannel journey from a digital start point, rather than those that began as physical stores.

Implementing technological solutions like QR codes has made it easier to return

products and customers are more likely to buy from a company that offers easier return processes. “Technology has helped in improve the efficiency of deliveries, but also the customer experience in the merchandise return process, which is very valued by them,” says Fernando Del Río, Commercial Director for E-commerce, Linio.

However, flexible return policies could open the door to fraud. Machine learning can be a solution to fight this problem, which can detect anomalies or suspicious return patterns, says Dolcet.

Ultimately, whether e-commerce returns are seen as a cost or an opportunity depends on the approach retailers take. By prioritizing the customer experience and using returns as an opportunity to improve, retailers can turn them into a competitive advantage and drive longter m success.

DATA AS THE CORNERSTONE OF RETAIL STRATEGY

The amount of data available to retailers and e-commerce companies has grown exponentially. Because of this abundance of data, many retailers still struggle to make sense of it, failing to use it to inform their business strategies. This “analysis paralysis” is a significant challenge for retailers, which risk being left behind in an increasingly competitive market if they cannot effectively leverage data to stay ahead of the curve. To overcome this sizable challenge and fully exploit data, industry leaders at Mexico Business Forum

2023 emphasized the need for setting clear goals and developing a comprehensive data mapping strategy to generate impactful business insights.

“The true ROI of data lies not just in the amount of information collected, but in the ability to identify key indicators and adapt analytical models to an ever-evolving business ecosystem,” says Marco Gelosi, General Manager Mexico and Central America, Swarovski. Moreover, it is strategic and fundamental for retailers to “continuously

assess and update their data strategies to stay ahead of the curve,” adds Gelosi.

Mexico has a rapidly growing retail market with a population of over 126.7 million people, making it one of the largest consumer markets in the world. In recent years, Mexico has seen a surge in e-commerce sales driven by factors such as increasing penetration of internet and smartphones, rising disposable incomes and the COVID-19 pandemic, which accelerated the shift to online shopping. As a result, retailers in Mexico are under pressure to adapt to this changing landscape, and many are turning to data-driven strategies to gain a competitive edge.

understand that there are two types of data, customer and retail data, which involve behaviors and preferences and sales information, respectively,” says Gelosi.

It is also essential for retailers to adapt their analytical models to the rapidly transforming needs of their businesses. As the market changes, the types of data that are most relevant to a retailer’s success may also shift. By regularly reassessing their data strategies and adapting their analytical models, retailers can stay ahead of the curve. “For a clearly defined retail strategy, it is imperative to have a clearly defined goal and useful segregated data,” says Eduardo Vecchio, Director General, Zingara Swimwear.

Before introducing data management tools, it is necessary to determine the information that is necessary to the company’s business strategy. “Data analysis will make businesses react and invest differently,” says Ezequiel Bagnardi, Managing Director, Pandora. While nowadays businesses are focusing on offering an omnichannel approach, they could also benefit from using data to identify the best channels for their needs, adds Bagnardi.

“Data is the heart of the operation and technology is an enabler. Both are important for the retail industry,” says Diego Halftter, Chief Data and Analytics Officer, Jüsto.

Key performance indicators (KPIs) play a crucial role in determining the ROI of data. By identifying the most important metrics and using them to track progress toward specific goals, retailers can better understand how their data is driving business results. “Before developing a robust data strategy, it is important to

To thrive, effectively leveraging data is critical for retailers in today’s rapidly evolving market. The risks of not doing so are significant, including missed opportunities, increased costs and lost revenue. To maximize the ROI of data, retailers must establish clear goals, develop a comprehensive data mapping strategy and adapt their analytical models to shifting business ecosystems. By taking these steps, retailers can unlock the full potential of their data and gain a competitive advantage in the marketplace.

Artificial intelligence (AI) is benefiting many business areas, especially customer experience (CX). AI has made significant advances in the past 70 years, which have enabled businesses to deliver more personalized experiences to their customers, improve their operational

efficiency and ultimately drive growth. While its potential is enormous, its use can also bring significant risks.

In the future, AI may be able to automate up to 70% of the tasks that humans perform

THE FUTURE OF AI: WHERE AI IS HEADED AND HOW IT WILL IMPACT CX

“The true ROI of data lies not just in the amount of information collected, but in the ability to identify key indicators and adapt analytical models to an everevolving business ecosystem”

Marco Gelosi

General Manager Mexico and Central America | Swarovski

today. AI can free up resources, allowing humans to focus on more complex tasks. For example, in the healthcare industry, AI is used to help diagnose and treat patients, while in finance it is used to analyze financial data and predict market trends. “Automation is not meant to replace humans. It should make their work easier,” says Isaac Solís, Pre-Sales Director, Zendesk.

Companies can use Zendesk’s AI solutions to make their CX teams more efficient. Advanced bots with pre-trained customer intents provide personalized and accurate responses, while intelligent routing helps prioritize and automatically direct conversations to the right agent. Contextual information and AI-powered macro suggestions also improve agent effectiveness.

For example, Zendesk’s Agent Workspace reads a client’s request or history and uses AI to summarize the issue, regardless of the channel used. It later provides the summary to a support representative who then takes over. Additionally, the AI can offer suggestions to help solve the problem. “This is the part that excites me the most, the AI can even offer suggestions based on the tone and intention identified in the user’s requests,” says Solís.

AI has become more accessible thanks to the development of Language Models (LM) that also use synthetic data, which is real data that has already been analyzed by humans, explains Solís. According to Gartner, 60% of data used by AI will be based on synthetic dat a by 2024.

While the potential benefits of AI are vast, there are also significant risks associated with its use. One of the main concerns is

that AI systems may not fully understand the unique nuances of a particular business or industry, leading to incorrect or misguided decisions. Additionally, AI systems are not infallible and are prone to making errors, especially when they are used in complex or unpredictable situations. Another major risk is that AI can be manipulated or used to deceive individuals or orga nizations.

Solís suggests three key strategies to mitigate the risks associated with the use of AI to address customer issues. The first is to adjust and base the AI on real facts, while adjusting the parameters of the AI according to the appropriate data. “On what facts should I base my AI to serve our users? In the data of my product and industry, it is not necessary to add external data beyond what is needed for its work,” says Solís.

The second is to keep humans informed. “AIs make mistakes, it’s important to have expert eyes to monitor responses that are not plausible,” says Solís. Finally, the third strategy is to reduce the scope of responses and scale as needed. “It is not necessary to leave the AI to solve problems; it is important to identify when the situation should be moved to a human for proper handling,” he adds.

To effectively supervise AI and mitigate the risks associated with its use, businesses must adopt a proactive approach. “AIs do not have a moral compass; they are based on language, therefore human intervention is always necessary,” s ays Solís.

This involves adjusting AI systems to follow facts and data, rather than assumptions or biases. Additionally, companies must keep humans informed about the decisions being made by AI systems. Humans should also be provided with the tools they need to monitor and evaluate AI performance. One way to achieve this is by reducing the scope of automated responses and escalating them to human operators who can intervene if necessary.

“Automation is not meant to replace humans. It should make their work easier”

Isaac Solís

Pre-Sales Director | Zendesk

THE INTERSECTION OF AI AND ECOMMERCE PAYMENTS

To streamline online sales, experts recommend reducing friction and increasing the efficiency of the checkout process. For this reason, integrating AI in e-commerce payments is becoming essential for businesses that seek to stay competitive, as this technology is disrupting the consumption by enabling fast, secure and independent payment processing techniques. It can also help companies address a growing problem in e-commerce: fraud.

E-commerce is expected to grow sharply in Mexico in the coming years, with projections indicating that 16.5% of retail sales in the country will be made via e-commerce by 2026. This puts Mexico ahead of all other countries in the region, with the exception of Brazil, in terms of e-commerce sales.

As retailers in Mexico look to capitalize on this trend, AI will undoubtedly play a key role in enhancing the customer experience and driving sales growth, especially when it comes to e-commerce payments. While many fear that AI will replace human beings, others say that this technology will help and improve lives. Stripe, a leading payments company, can help organizations leverage the benefits of AI.

“Stripe is helping AI companies differentiate. It is improving customer support, creating

better experiences for developers and boosting fraud prevention. For example, OpenAI’s ChatGPT premium subscription uses Stripe Billing and Stripe Checkout,” says René Salazar, Head of Partnerships LATAM , Stripe.

Machine learning and AI offer great solutions for fraud prevention as they continuously learn from millions of global businesses that process payments. For example, Stripe’s Radar assigns risk scores to every payment and automatically detects and blocks fraudulent transactions.

Troublingly, fraud has grown alongside online sales, particularly in Mexico. Stripe is also assisting users in mitigating fraud. “Every US$1 of fraud costs businesses US$3.3 due to operation burdens. Just think about how much personnel you have to hire to answer to clients in response to chargebacks or similar issues,” says Salazar. Stripe’s recommendation engine dynamically presents the appropriate payment methods to buyers based on their country. Stripe has also improved its authorization rates by 2% and reduced fraud by 8%

There is a revolution taking place in technologies like Large Language Models (LLMs), which could reduce 37% time in writing task, says Salazar. What is next for AI

applications in payments is the creation of a business coach using LLM. Stripe is working to develop this technology under the name Sigma, which is expected to identify the

client’s transactions to give a financial situation report, he adds. Furthermore, this technology will be able to give insights of the financial situation of the client’s company.

FUTURE OF PAYMENTS: LEGACY METHODS, AGGREGATORS AND PAYMENT TYPES

As businesses compete for customers’ attention, offering various payment options and services is becoming essential. Customers are more demanding than ever and require fast, secure and convenient payment options that fit their lifestyles. As the online sales grow, businesses must strive to offer clients the payment options they want or risk being le ft behind.

The future of payments is a critical matter for businesses in the digital age, as customers demand fast, secure and convenient payment options. Traditional payment methods, such as cash and checks, are gradually being replaced by digital payments, including credit and debit cards, mobile payments and e-wallets.

“The market has expanded and has allowed businesses to materialize experiences that previously seemed very distant in Mexico,” says Erick MacKinney, Vice President of Market Developmen t, Kushki.

Mexico has sharply grow its number of internet users in recent years, and e-commerce has followed suit. Thus, businesses will likely have to adapt to a larger number of online consumers and transform their payment methods accordingly. Legacy payment methods are slowly being phased out as digital payments become the norm.

“Technology, data and support play an integral part in ensuring flexible and efficient payment transactions,” says Anna Aguilar Gallart, Sales Director, Adyen. Credit and debit cards are widely accepted and continue to be popular choices for online and offline transactions. Mobile payments and e-wallets are also gaining popularity, especially among younger generations who prefer to use their smartphones for payments. In response, businesses increasingly integrate mobile payment options into their checkout processes to offer customers a seamless and convenient payment ex perience.

Omnichannel is also becoming more important as businesses seek more sophisticated choices through different channels. Blending the physical and digital world is becoming essential and alternative payment methods are gaini ng ground.

“The market has expanded and has allowed businesses to materialize experiences that previously seemed very distant in Mexico”

Erick MacKinney

Vice President of Market Development | Kushki

In addition, a new generation of payment aggregators and platforms is emerging, offering new payment types and services that cater to the evolving needs of businesses and customers. The emergence of aggregators has brought disruptive changes to the digital ecosystem, turning them into important and decisive players in the industry.

Payment aggregators and platforms are transforming the payment landscape. They can give businesses access to multiple options, allowing them to provide their customers a more comprehensive range of payment choices. In addition, some payment platforms are leveraging blockchain technology to create new payment modes, such as paying through cryptoc urrencies.

By offering a range of payment options, businesses can appeal to a wider audience and enhance the customer experience.

The pandemic accelerated the e-commerce ecosystem and forced companies to adapt to what was happening in the world. Companies that were not prepared could not achieve their objectives, but those

that were able to position themselves have turned into marke t leaders.

Strategies have become increasingly diversified and sophisticated due to consumer demands. Businesses must assemble specialized teams, as there is a high demand for sophisticated payment models. “Businesses are asking for more sophistication to have different access channels. This is becoming more important and cashless payments are growing in double digits,” says Eduardo Santíllan Del Rio, Head of Mexico, Verifone.

The digital payments ecosystem in Mexico is constantly evolving and players seeking to lead in the industry must have a clear and sophisticated vision. In this regard, technical sophistication and omnichannel capabilities are essential pillars that must be considered to achieve a better customer purchasing experience. Collaboration between the different actors in the ecosystem is essential, as competition enriches and helps provide a better solution that benefits end customers. However, the adoption of these strategies depends on the heart and idiosyncrasy of the company, says Aguilar.