MasterCard (NYSE:MA) is setting its sights on Mexico City, a major metropolitan area that still runs mainly on cash transactions. And the initiative could have an impact on small businesses.
There are about 22 million people in the Mexico City area. And more than half of them don’t even have a bank account. So they aren’t using credit and debit cards for purchases. Now, MasterCard is working with the government to increase the number of vendors that accept credit cards. And the company also wants to increase the amount of consumers using credit cards.
MasterCard Targets Mexico City — The Impact
This initiative presents a lot of potential benefits for the consumers in the area, like not having to wait in long lines for ATMs and Metro rides. But it also could have benefits for small businesses around the world.
Businesses that sell internationally have a better ability to sell without confusion about currency conversions when credit cards are involved. And an increased number of credit card consumers also makes it easier for businesses to make sales online.
It’s going to be a long process for MasterCard and Mexico City to make the conversion from cash to credit cards. But for small businesses, the more consumers that have access to these resources, the more opportunities there are to increase sales to consumers internationally.[“Source-smallbiztrends”]