Banco de México has issued new rules that simplify digital payments and raise deposit limits for small businesses. The central bank's move is meant to pull more merchants into the formal financial system. Regulators hope the changes will cut into the shadow economy and unlock credit for millions of enterprises that have been operating mostly in cash.
What the rules change
Under the updated framework, small businesses can now hold higher balances in digital accounts without triggering extra paperwork. Payment processors face fewer bureaucratic hurdles when onboarding merchants. The bank didn't specify exact deposit caps, but the shift is toward fewer restrictions on electronic transactions for smaller firms.
The rules strip away steps that previously made it costly for micro-businesses to accept card or mobile payments. By lowering the compliance burden, the central bank wants to make digital finance the default choice — not a luxury.
Why financial inclusion matters
Mexico has one of the highest rates of cash-based commerce in the OECD. The shadow economy accounts for a big slice of daily trade. That means many small businesses lack a documented revenue trail. Without one, banks can't assess creditworthiness, and owners stay locked out of loans.
The new rules aim to change that. When a taco stand or a workshop starts processing payments through a formal digital channel, a transaction history builds. That history can become the basis for a loan application. The central bank estimates the reform could bring millions of informal businesses into the banking fold over time.
Cheaper, easier digital payments also make it harder to hide income. That's a double benefit: more tax revenue for the government and more economic data for policymakers.
Credit access for the unbanked
Raising deposit limits is the other part of the equation. Small businesses often run on thin margins. They need to park cash somewhere safe without worrying about hitting a low ceiling. Higher limits mean they can keep more money in a digital account without being forced to withdraw and hold cash.
For lenders, a steady digital balance is a signal of reliability. It's a data point that can substitute for collateral or a formal credit history. The central bank's move is effectively creating the raw material for new lending products targeted at the informal sector.
Whether fintech companies and traditional banks will jump in quickly remains an open question. The regulatory door is now wider, but the business case still depends on getting customers to switch from cash.
