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Most banks ready for launch of CoDi, Banxico says

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Most banks ready for launch of CoDi, Banxico says

Most of the 33 banks required to participate in Mexico's brand new digital payment platform CoDi are ready for the Sept. 30 nationwide launch of the system, according to the country's central bank.

Designed by Banco de México to boost digital transactions and move consumers away from cash-use, CoDi will allow consumers with bank accounts to use QR codes to pay for goods and services.

Lenders such as Banco Azteca SA Institución de Banca Múltiple, Grupo Financiero Citibanamex S.A. de C.V., Banco del Bajío SA Institución de Banca Múltiple, BanCoppel SA Institución de Banca Múltiple, Banregio Grupo Financiero SA de CV, Grupo Financiero BBVA Bancomer SA de CV, Intercam Banco SA Institución de Banca Múltiple Intercam Grupo Financiero, Banco PagaTodo SA Institución de Banca Múltiple and Banco Santander México SA are testing the platform in a pilot program in three cities in Mexico, according to central bank information.

During the week of Sept. 23, Citibanamex, BBVA and Banco Azteca will start using CoDi in an area in the city center of Mexico City, as the lenders carry out further testing of the platform, according to a report by El Economista.

Meanwhile, Banco Inmobiliario Mexicano SA Institución de Banca Múltiple and Grupo Financiero Mifel SA de CV are among the companies that have also received certification to operate with CoDi.

According to the publication, the banks that are the least prepared for the launch are Banco Nacional del Ejército Fuerza Aérea y Armada S.N.C., Banco del Bienestar, Grupo Financiero Scotiabank Inverlat SA de C.V., CIBanco SA Institución de Banca Múltiple, Banco Invex SA Institución de Banca Múltiple INVEX Grupo Financiero, Banco Autofin México SA Institución de Banca Múltiple, Banco Sabadell SA Institucion De Banca Multiple and Bansi SA Institución de Banca Múltiple. CIBanco S.A. Institucion de Banca Multiple, Fideicomiso CIB2513

In an August report, Moody's said CoDi would facilitate electronic payments and allow banks and financial technologies to target new clients. However, the CoDi system will also benefit conventional lenders, as it requires users to hold bank accounts, limiting the reach of new players.

According to the country's 2018 national financial inclusion survey, 87% of adults used cash for purchases above 500 Mexican pesos. The figure was 95% for smaller transactions. But while the government intends to reduce the use of cash through the adoption of the digital platform, industry players have voiced skepticism over the effectiveness of CoDi in its current form.

As of Sept. 20, US$1 was equivalent to 19.45 Mexican pesos.