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August 12, 2019

Mexico faces widespread card payment failures amid digital banking push

Multiple Mexican banks took to social media to report widespread failures in processing card payments due to a technical glitch.

According to media sources, the failure was due to a technical glitch on the PROSA, an electric payment company which manages such transactions.

The issue was said to have been resolved and services resumed gradually.

Several Mexican lenders including Banorte, HSBC and Santander Tweeted about card payment failures. However, it was not confirmed if cardholders of other banks were also affected, reported Reuters.

Extensive failures were reported in the country capital Mexico City where many shops resorted to cash transactions.

Some Twitter users outside Mexico City also reported similar problems.

The failure comes at a time when the Mexican government is encouraging card transactions in the country to boost financial inclusion and regularise economy.

Recently, Bloomberg reported that the American nation might ban the use of cash to purchase gasoline or pay for highway tolls.

The move, currently under consideration, is expected to help the government combat money laundering and tax evasion.

Last month, Uber partnered BBVA, Mastercard to launch debit cards for its drivers in Mexico. Initially, it will be rolled out in six cities and will be gradually expanded across the country.

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