Credit Cards Accelerate at Double-Digit Rates Despite a Cooler Macroeconomic Environment
Credit card financing continues to expand at a remarkable pace in Mexico, even as the rest of bank lending grows more cautiously. According to data from the National Banking and Securities Commission (CNBV), by the third quarter, banks had issued 669.66 billion pesos in credit card loans, representing annual growth of nearly 11.5%—outpacing other lending segments.
Information from Banco de México shows that there are 91.7 million credit cards issued by banks, although only half are actively used. Private consumption has shown resilience, supported by the labor market, wage increases, and record levels of remittances—factors that have maintained demand for revolving credit even in a high-rate environment. The increased digitization of payments and promotional offers like interest-free installments have also fueled preference for “plastic.”
The paradox of more credit cards being issued during a restrictive monetary cycle can be explained by several factors: heightened competition among banks and fintechs, faster origination processes, and commercial partnerships that broaden the customer base. Additionally, advances in financial inclusion and the adoption of digital wallets and mobile point-of-sale terminals have reduced friction at checkout, encouraging repeated card use over cash.
Among the institutions that expanded their credit card portfolios the most through the third quarter were Ualá, Mifel, and Invex, according to the CNBV. Ualá posted annual growth of more than 150% in this area, while Mifel and Invex saw increases of 47% and 29%, respectively. The latter two have focused on partnerships with brands and retailers (such as airlines and retail chains) to leverage co-branded cards and loyalty programs—a strategy that has successfully attracted new users.
In contrast, Banco Azteca, HSBC, and Santander reported declines in credit card lending through September. Analysts attribute these setbacks to recalibrated risk appetites, portfolio cleaning, and a tactical shift toward other products with better margins or risk profiles—essentially waiting for clearer signals regarding interest rate trends and consumer demand.
While this dynamism is positive for banking intermediation and fee income, it also heightens the need to monitor portfolio quality. Credit card delinquency has ticked up from low levels as payment behavior normalizes after the pandemic years, and as financial costs remain high. The CNBV has emphasized responsible origination criteria and transparency around Total Annual Cost—a relevant issue in a market where consumer debt is often among the most expensive.
On the macro front, GDP growth has slowed relative to 2023 and inflation has eased, though service-sector prices remain under pressure. With Banxico maintaining a cautious stance and the market expecting gradual rate cuts depending on inflation trends, credit costs could soften gradually in 2025. At the same time, nearshoring and manufacturing investment could support jobs and incomes in certain regions, sustaining demand for financing—though pockets of volatility remain in the exchange rate and input prices.
Looking ahead, consumer lending—and credit cards in particular—will remain a key driver of banking profitability, but will demand careful calibration of risk and growth. The rise of open banking, “buy now, pay later” schemes, and increased payment interoperability may intensify competition, push up customer acquisition costs, and require institutions to refine their risk models and value propositions.
In summary, credit cards are solidifying their role as the engine of lending in an economy that remains challenging: they’re growing at double-digit rates, gaining traction through partnerships and digitalization, but face the ongoing test of portfolio quality and the cost of funds. The final outcome will depend on the health of consumer spending, the path of inflation, and the system’s ability to prudently manage this expansion.
