Subscriptions strengthen business in Mexico and Latin America

Technological advances and growing consumer demand for greater convenience are driving a growing number of businesses to adopt subscription models. According to Stripethe global financial infrastructure platform, is trend is on the rise not only in Latin Americabut Mexico stands out as one of the main protagonists of the economic growth.

Mexico

In the Mexican context, the subscription-based economy emerges as a prominent player. The local subscription market is projected to experience a compound annual growth of 31% during the period 2022-2026, exceeding the regional average of 25%. A revealing example is the 139% increase recorded by Stripe Billing, Stripe’s subscription payment platform, in the Mexican market during 2022.

“In a highly conducive environment, companies that want to join this trend will be able to offer the option of recurring purchases, which means more pricing options, free trials (freemium model), different subscription durations and other customizable alternatives. Reflecting these possibilities clearly at checkout is somewhat more complex than single payments. A flexible and robust payment tool is necessary to support multiple charging rules at different time intervals, for each subscriber,” the report says.

Evolution in Latin America

The report divides the evolution of online subscriptions in Latin America into three important stages. The first, from 2010 to 2014, began primarily with media and streaming, but faced limitations such as limited access to credit cards and international transactions. The next stage, from 2015 to 2020, saw growth driven by the strengthening of e-commerce, the adoption of recurring digital payments on mobile applications and the Covid-19 pandemic. Starting in 2021, the region is expected to enter a new phase that could double the subscription market by 2026, thanks to factors such as generational preferences, the increased issuance of credit cards and the advancement of the digital economy.

The report indicates that currently, the media, software and digital services sectors are well established in this business model. Meanwhile, retail, video games, digital education and health are growing. Business services, mobility, devices and hospitality are considered emerging in this context.

As a professional journalist with a specialization in Investigative Journalism, I obtained my bachelor’s degree from the Autonomous University of Sinaloa in 2021. My professional career began in January of that same year, when I joined the Bunko newsroom at El Debate. In 2022, I ventured into Content Marketing, where I was able to develop creative strategies to generate relevant and attractive content. The following year, in 2023, I was in the Affiliates area. Currently, in April 2024, I am part of the Portafolio team, the section dedicated to economics in the print edition of El Debate.

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