Tapping difficult markets requires vision and innovation and Visa has done it just right in Mexico. Visa has partnered with OXX (the largest chain of convenience stores in Mexico) and Banamex Bank to offer Saldazo, a debit card linked to a savings account with no annual fee and no minimum balance requirements. According to guardian.com, only 35% of the adult population in Mexico has a savings account from a recognized financial institution. This is because Mexicans seem to not prefer going through the elaborate paperwork required to open a bank account. Visa has solved this problem by introducing Saldazo program where customers can open an account at a local OXXO store in five minutes. The only piece of documentation required is an ID card. Saldazo program has become quite popular in Mexico as it is evident from the fact that in just two years, it has 1.7 million accounts with more than 50% cardholders being women.
Saldazo offers various attractive features for their cardholders, like online money transfer through Banamex mobile application. Consumers can pay at street-side hot dog stalls to movie theaters. There is no need to carry extra cash anymore that can lead to overspending, theft or loss. Consumers find Saldazo an easy, convenient and safe way to deposit and withdraw funds through merchants that are open 24/7. Money can be deposited easily into the savings account at any of the 12,000 OXXO stores nationwide. Saldazo customers can also access special in-store promotions at OXXO stores with the use of this card. Consumers now have better access to e-commerce stores, whereas earlier they had no option to make electronic payments.
Visa is aiming at developing the Mexican finance sector. Electronic payments and reduction in cash will definitely have a positive impact on the economy. Consumers are now able to make online payments. This is leading to a better e-commerce infrastructure in the country as the demand grows in this sector. Mexico is hurtling towards a new generation of payments and both consumers and retailers are feeling the benefits.