OXXO

Oxxo is an online payment method in Mexico that allows e-commerce customers to generate a payment voucher and pay with cash at Oxxo branches across Mexico. Oxxo is the most popular alternative payment method in the country.

Similar to other voucher-based payment solutions, Oxxo allows shoppers to order items online, select the Oxxo payment option at checkout, and then receive a voucher. Online customers can then pay for their purchases with cash at one of more than 18,000 Oxxo stores across the country. Many Mexicans do not have bank accounts or credit cards, so Oxxo has become an especially popular payment method for e-commerce orders.

How does Oxxo work?

Oxxo is a convenience store chain with thousands of stores across Latin America that accounts for nearly 20% of online transactions in Mexico. Customers can pay their bills and online purchases with cash in-store by first receiving a voucher containing a transaction reference number and then taking it to an Oxxo store for cash payment.

Merchants will receive payment confirmation along with cleared funds the next business day.

Here are the steps in the process:

1. Customers select Oxxo as a payment method at checkout.
2. The system generates a coupon with a barcode for the customer to print or display on their phone.
3. Customers can pay for their purchases with cash at any Oxxo store.
4. Merchants receive payment confirmation within one business day.

Why do merchants and consumers use Oxxo?

Consumers can use Oxxo to pay bills and make online purchases without having a bank account or credit card. Transactions are paid in cash, so there is no risk of chargebacks. With 18,000 Oxxo convenience stores in Mexico and 71 million unbanked customers, Oxxo has access to a market where 21% of online transactions are paid in cash.

With a population of nearly 130 million and a growing e-commerce market, Mexico is a top destination for businesses looking to expand their business in Latin America. Oxxo offers online merchants a way to reach Mexico's large unbanked population by offering the ability to use cash as a payment method for e-commerce orders. Mexican consumers are used to using vouchers to pay for their purchases. This habit has also permeated online shopping, prompting customers to seek out e-commerce companies that offer voucher-based payment methods.

Another benefit of implementing Oxxo is that payments are less likely to be fraudulent, as customers must physically present themselves at an Oxxo convenience store to provide cash payment. Oxxo payments are non-refundable, and single payment amounts must be at least MXN 10.00 and not more than MXN 10,000.00.

How can merchants start accepting Oxxo?

Oxxo is a one-time payment method that requires customers to present a voucher and make a cash payment at an Oxxo convenience store. Merchants can easily integrate this payment method by partnering with a payment gateway that offers Oxxo as one of the available payment methods.

PayU’s global payments platform supports Oxxo as well as many other cash-based alternative payment methods in Latin America – helping merchants localize the checkout experience around the world with a single global integration.