Bank of Mexico: Digital loans are considerably more expensive than traditional on

Digital banking platforms operating in Mexico have emphasized innovation, accessibility, and the digital experience for their users; however, when it comes to credit cards, some operate at significantly higher total costs than traditional banks, according to official data.

Based on information published on their websites, the total annual cost (TAC) of credit cards from institutions such as Plata, NU, or Mercado Pago averages 148.5 percent.
The average TAC for these three institutions is 31.2 percentage points higher than that of Banco Azteca (117%) and 51.6 points higher than that of BanCoppel (96.9%).

It is worth noting that the CAT advertised on the websites of all these institutions—including traditional banks—is an average and does not include value-added tax (VAT).

In comparison, classic and basic cards such as those from INVEX (Sam’s Club and Walmart) report a CAT of 31.2%, while HSBC Air stands at 55.6%, according to information from the Bank of Mexico (BdeM).

The bank itself notes that the CAT is a benchmark indicator calculated under uniform assumptions and may vary depending on each user’s profile; however, this announcement highlights the differences in financing costs among the various participants in the financial system.