# PAGA Case: PayPal

A Strategic Ally for the Growth of SMEs in Mexico


### PAGA Case: PayPal

A Strategic Ally for the Growth of SMEs in Mexico


## Description

PayPal not only facilitates seamless and secure payment processes but also helps SMEs in Mexico expand their reach, enhance their e-commerce experiences and reach customers beyond local borders, allowing them to thrive in an increasingly digital and global marketplace. Through its platform, businesses can conduct secure cross-border transactions, allowing them to tap into international markets and grow sustainably. The company’s platform provides businesses with the tools they need to grow their online presence, reach new customers, and increase revenue, even in challenging economic conditions. By offering an affordable and secure method for international transactions, PayPal eliminates the barriers SMEs face with traditional payment methods. The platform grants businesses access to over 200 markets, significantly broadening their growth potential. PayPal's robust security features, including buyer and seller protection, instill confidence in e-commerce participants. Furthermore, PayPal bridges the gap for unbanked or underbanked individuals and businesses in the region, providing digital payment solutions that don't require a bank account. This enables broader participation in the global economy, particularly benefiting those in rural or underserved areas with limited access to financial institutions. By facilitating e-commerce engagement, market access, and wealth-building opportunities, PayPal plays a crucial role in financial inclusion.


## Impact

A study commissioned by PayPal from Mandarina Research revealed that 7 out of 10 businesses in Mexico now offer e-commerce options, recognizing the significant benefits of online sales. These businesses report advantages such as increased sales, a broader customer base, faster inventory turnover, and greater ease in receiving payments. Additionally, 9 out of 10 merchants offering monthly installment payment plans (MSI) say they are highly satisfied with this feature, as it drives more sales. In fact, MSI accounts for 43% of the total sales of businesses that offer this payment method, with 30% of customers preferring a six-month installment plan. This demonstrates the value of offering flexible payment options to increase customer loyalty and boost revenue. PayPal's solutions extend across the Latin American region, where it supports digital commerce and financial inclusion with approximately 15 million active accounts in Latin America, including 5.6 million in Mexico and 3.5 million in Brazil.


## Territory

Globally, PayPal has remained at the forefront of the digital payment revolution for over 25 years, with 428 million active accounts across more than 200 markets, including 35 million business accounts.  In Latin America, this commitment to innovation is evident in PayPal’s efforts to continually improve its platform and offer new features that meet the evolving needs of businesses and consumers. For example, PayPal's integration of various local payment methods allows consumers to link their preferred payment options—such as debit cards, credit cards, and meal vouchers—to their PayPal accounts, making it easier for them to shop online. This flexibility is particularly important in Latin America, where the use of alternative payment methods is growing rapidly.

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