Mastercard Targets Mexico City, Where Cash Is King

The video discusses Mexico City's heavy reliance on cash, with 85% of transactions being cash-based. MasterCard aims to reduce this by introducing a cashless system using debit cards linked to bank accounts, starting with the Metro system. However, challenges include the large informal economy and low bank account ownership. The initiative aims to bring more people into the formal economy, but faces obstacles due to economic inequality. MasterCard's success in Colombia is highlighted as a model, but a cashless economy in Mexico is still distant.

What is the primary reason MasterCard is interested in Mexico City's economy?

• To promote tourism

• To reduce cash transactions

• To increase cash flow

• To support local businesses

How do most people currently pay for their metro rides in Mexico City?

• Through online payments

• In cash

• With mobile apps

• With credit cards

What is a significant challenge for implementing MasterCard's proposal in Mexico City?

• Limited public transportation

• Need for bank accounts

• High cost of debit cards

• Lack of interest from the government

What is the government's interest in MasterCard's initiative?

• To reduce public transportation costs

• To formalize the economy

• To increase tourism

• To promote international trade

What is the expected timeline for the introduction of debit cards in Mexico City?

• By mid-2018

• By the end of 2017

• By 2025

• By 2020

What economic issue does the transition to a cashless economy highlight in Mexico?

• High inflation rates

• Economic divide

• Lack of foreign investment

• Over-reliance on exports

What is a major barrier for low-income individuals in accessing banking services?

• Insufficient cash reserves

• Limited banking hours

• Lack of identification

• High transaction fees