Cash or card in Mexico: Which is the best way to pay?

Planning a trip to Mexico? If so, you’re probably in the midst of creating your travel budget. While deciding how much to spend is important, it’s equally essential to understand the payment habits of the locals. Some countries have fully embraced cashless payments, while others, like Mexico, still hold on to this method.

Cash is still the number one payment method in Mexico, but this is beginning to change. The use of debit and credit cards together now exceeds that of cash, and this trend is expected to continue in the future. However, how often you'll use cash depends on where you're travelling and how you plan to spend your time. We’ll cover this and go into more detail to help answer the question - Which is more convenient, cash or card in Mexico?

We’ll also show you a cost-effective way to handle your finances in Mexico with Wise. For any international purchases, online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* and great mid-market exchange rates.

How cash-centric is Mexico?

Mexican citizens primarily use cash for payments, although the combined use of debit and credit cards surpasses cash. Some major companies, like Amazon, even offer cash payment options for online purchases.¹

Cash remains dominant in Mexico, partly because a large percentage of the population does not have a bank account. However, cash usage is gradually declining, and methods such as e-wallets are expected to become more popular in the future.¹

Cash etiquette in Mexico

Tipping is quite common in Mexico, particularly in bars and restaurants. The standard tip is 15% of the bill, though you can leave more if you're very satisfied with the service.²

Besides pesos, you can also leave US dollars as a tip. Just make sure to use bills instead of coins, as they’re easier to exchange.²

A service charge is sometimes included in the prices, but be careful not to confuse it with IVA. IVA is the 16% value-added tax that goes to the government, not to your servers.²

Cash or card in Mexico - the comparison

We’ve listed some common situations where you’ll be paying for things in Mexico. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card 💳	Cash 👛
🚕 Taxis3	Sometimes	Yes
🏪 Tienditas3	Usually no	Yes
🌮 Markets3	Sometimes	Yes
🪨Archaeological sites3	Usually no	Yes
🖼️ Museums3	Usually no	Yes
🚌 Public transport4	No, only with a Metro card	Yes

Want to work out exactly how much things cost? Explore our live Mexican pesos exchange rate currency converter.

Using your card in Mexico at an ATM

There are over 70,000 ATMs in Mexico operated by around 15 different banks. You’ll easily find them throughout big cities and at the airport, and even smaller towns typically have a few available. However, if you're heading to a rural area, it's a good idea to withdraw some cash in advance just in case.⁵

ATM withdrawal limits in Mexico vary by bank, but they generally range from 4,000 to 11,000 MXN per transaction. While most ATMs charge fees, you might come across some that are free to use.⁵

Will my UK debit card work in Mexico?

Yes, all major card brands are accepted in Mexico. However, some smaller businesses may not accept cards, so it's important to have cash on hand as well. Also, additional fees might apply for using your card abroad.⁶

Can I use my UK credit card in Mexico?

Yes, you can use your UK-issued credit card in Mexico, as long as you go to a place that accepts cards.

Reasons to use cash in Mexico

Cash is the number one payment method in Mexico, and there are no places where it isn’t accepted. However, you might still come across cash-only establishments, such as certain small shops and local restaurants.

In Mexico, cash is often the more practical choice, since you might miss out on certain authentic experiences if you don’t carry it. For instance, you won’t be able to shop in tienditas or markets like the locals do. Some vendors might even offer discounts for cash payments or charge extra fees for card payments to cover bank charges.

Additionally, if you prefer leaving tips in cash, it’s a good idea to keep some Mexican pesos on hand.

Reasons to use credit or debit cards in Mexico

Since all major card companies are accepted in Mexico, your UK debit or credit card can be very useful. Besides being a more convenient option, it’s also much safer than carrying large amounts of cash with you.

Also, although cash is still more popular, cards are accepted in most large stores, hotels, shopping centres and restaurants. If you're travelling to a popular tourist destination, you'll likely be able to use your card frequently.

Are contactless card payments common in Mexico?

Contactless payments are becoming increasingly popular in Mexico. In the past year only, they’ve grown by 150%.⁷

The limit for contactless payments in Mexico is 500 MXN, after which you’ll need to enter your PIN.⁸

Your Wise card can also be used for contactless payments in Mexico. If you don’t want to carry multiple cards with you, you can get the Wise virtual card with the same features.

Get your Wise virtual card 💳

Other payment methods in Mexico

Besides the traditional cards and cash, other payment methods are available in Mexico.

Mobile payment

Some globally popular platforms, such as Apple Pay, Google Wallet and PayPal, are also available in Mexico. However, there are also local options, like Mercado Pago and BBVA Wallet.⁹

Mercado Pago is owned by the Mercado Libre platform and is used for making payments, sending money to others, or recharging phone balances. When using Mercado Pago, users can collect points and exchange them for various benefits.⁹

If you plan on using any of these wallet apps during your trip, make sure you update them before you leave to avoid any issues.

For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, too.

Buy now pay later options (BNPL)

BNPL options are quite popular in Mexico, with one of the leading providers being Kueski. Kueski allows users to pay in instalments, whether they are shopping online or in-store. They also offer personal loans of up to 2,000 MXN on the first request, with a maximum limit of 24,800 MXN in general.¹⁰

What is the best way to pay in Mexico: cash or card?

If you have to choose between cash or card in Mexico, cash is the better option. Although contactless payments are on the rise, cash is still king in Mexico and is accepted everywhere.

If you don’t want to rely on it entirely, you could bring your cards with you or ensure that your digital wallet apps are updated.

Spend like a local in Mexico with Wise

Cash is the most common payment method in Mexico, especially in small local shops and restaurants. However, cards and digital wallets are widely accepted in larger cities and their usage is expected to continue growing.

And if you want to spend like a local in Mexico and 150+ countries, without worrying about exchange rates and hidden fees, the Wise card might be just the thing you’re looking for.

The Wise card can be used for all international payments, including accommodation costs and daily expenses. It automatically converts the currency at the mid-market exchange rate with only a small, transparent currency conversion fee*.

Learn more about the Wise card 💳

You can also use it to easily withdraw cash from the ATMs in Mexico. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP.

Cash or card in Mexico - FAQs

To summarise, here are some of the most frequent questions about using cash or cards in Mexico.

What is the most popular payment method in Mexico?

Cash is still the number one payment method in Mexico, although other methods are becoming more popular.

Can you avoid foreign transaction fees in Mexico?

Yes, you can. One way to do this is by using the Wise card to pay during your travels.

Is it better to tip in pesos or dollars in Mexico?

It’s more convenient to tip in pesos, although US dollars are sometimes accepted. If you choose to give dollars, make sure to use bills rather than coins.

Do taxis in Mexico prefer cash or card?

You can pay by card in many Mexican taxis, but independent and local taxis prefer cash.

How can you avoid ATM fees in Mexico?

You can avoid some ATM fees by always choosing to be paid in the local currency and by using a fee-free card, such as the Wise card.

Can you use contactless in Mexico?

Yes, contactless payments are widely accepted wherever you can pay by card.

Is cash or card better in Cancun?

Cash is the better option throughout Mexico, including Cancun. However, larger restaurants and shops are likely to accept cards.

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Sources used:

1. PCMI - analysis of payments in Mexico
2. Frommer’s - tipping in Mexico
3. Mexperience - cash use in Mexico
4. Mexperience - getting around in Mexico
5. ATM Fee Saver - ATMs in Mexico
6. Mexperience - using debit and credit cards in Mexico
7. Mexico Business News - contactless payments surge in Mexico
8. My POS - contactless limits explained
9. Revalue - digital wallets in Mexico
10. Kueski - information about Kueski Pay

Sources last checked on date: 21-Jan-2025