Mexico’s central bank and Amazon are launching a mobile payment system

Amazon and the central bank of Mexico are working together to launch a government-backed mobile payment system called CoDi, which would allow consumers to make online payments using QR codes. CoDi is currently being developed by central Banco de Mexico, also known as Banxico.

With CoDi, users will be able to make online and in-store payments through their smartphones, without fees or additional charges, using QR codes. Banxico says the system aims to attract more Mexican citizens to  a formal financial program, considering more than half of Mexico’s population currently lack bank accounts.

According to Reuters, Banxico’s director of operations and payments confirmed that Amazon’s Argentine rival, MercadoLibre, has also expressed interest in quickly adopting CoDi, but no official partnership has been announced. Banxico has stated a pilot version of CoDi will be launched this month. 

Last year, online sales accounted for only 3.9 per cent of total retail purchases in Mexico, according to research firm Euromonitor International. Of that percentage, Amazon and MercadoLibre were the leading retailers.