What is SPEI?
Operating since 2004, SPEI (which stands for Sistema de Pagos Electrónicos Interbancários in Spanish and translated as Interbanking Electronic Payment System) is an electronic real-time money transfer service that was founded by Banco de Mexico. It allows Mexican consumers to complete payments in a smooth and safe way by leveraging either their bank or via online and mobile banking at any time – 24/7.
SPEI is a convenient and fast payment option, as it sends funds between bank accounts almost instantly. This makes it a payment method of choice among locals for all types of transactions and fees – ranging from recurring payments such as rent and loan repayments to one-off purchases of gifts.
How does SPEI work?
SPEI works like many other online banking solutions. Mexican customers can select to pay with SPEI on the merchant’s checkout page. A voucher is generated with the relevant payment information.
To use SPEI, users must have a bank account that accommodates internet and/or mobile banking, while the payment is deducted directly from their account. Payment data such as reference number – either the 18-digit Standardised Bank Code which is known as CLABE for Mexico (i.e., Clave Bancaria Esandarizada), a 16-digit debit card number or (the 10-digit) phone number of the recipient – is required, including the amount of payment.
Payments need to be completed through the customer’s bank, but mobile phone numbers can be linked to SPEI for transactions made via mobile banking. Shortly after the funds are transferred, users receive a receipt that contains all the relevant details about the transaction.
What verticals does SPEI cover?
SPEI is a payment method that can support several sectors, including travel, gaming, general eCommerce, and retail.
How big is SPEI’s penetration in the market?
When it comes to SPEI, data from El Economista shows that the volume of transactions under US$390 made via this payment system increased by 90.2% in 2020. Impressively, 855 million payments were performed for this amount and SPEI granted 99% efficiency.
According to PYMNTS, Latin America is going through a digital payments evolution, with most regional consumers (90%) having used some kind of digital banking. Mexico is presenting a particularly interesting case, as 94% of the population relied on digital ways to pay as of 2022. Research from Statista also testifies to the growing traction of digital payments among Mexican consumers, as they're projected to represent a CAGR between 2023 and 2027 of 13.12%, which is anticipated to amount to US$140.80 billion by 2027.
To minimise local consumers’ dependence on cash, debit cards and other payment methods that easily can be stolen or compromised, Banco de Mexico launched CoDi in 2019. CoDi is a request-to-pay functionality that supports the use of QR codes and near-field communication (NFC) for retail payments, with funds moving through the SPEI payments system. As of 2022, CoDi is being supported by 38 banks while being used by five million users in the country.
Benefits of using SPEI
As explored above, SPEI is widely known and used nationwide for multiple types of transactions. And for good reason, as the system delivers various benefits to both merchants and consumers.
For merchants
- Real-time confirmation for payments
- No risk of chargebacks involved
- Maximised sales volumes and conversions, as SPEI is a popular local payment solution in Mexico
For consumers
- Payments are completed almost immediately
- Trustworthy payment method, as users are connected to the service via a private network that uses encrypted communications
- Integrated into a user-friendly, seamless, and safe online and mobile banking environment
Accepting SPEI payments with emerchantpay
The ongoing growth of the digital payments market in Mexico makes it tempting for natives to pay for their items or expenditures online fast, easily, and securely. SPEI is a go-to option for merchants who consider localising their payment offering and meeting the payment needs of Mexican consumers. This way, they're better placed to engage their target audience and enable them to transact with their payment type of choice.
At emerchantpay we’re committed to supporting businesses of all types with optimising and adapting their payment strategy to regional buying and payment preferences. eCommerce brands and businesses can benefit from the actionable, data-driven insights and strategic support of our local team of payment experts, as they can help them ensure sustainable business success in the LATAM region.
Ready to start accepting SPEI payments and see your sales and conversions be on the up? Get in touch with our team of payment specialists today and learn more.