Where Cash Is King, the Government Wants Everyone to Pay By App

The Starbucks in the Buenavista mall, a sleek structure set just beyond Mexico City’s colonial center, was bustling on a recent weekday morning. Slowing down cashier Monserrat Ruiz: Customers, one after another, whipped out cash -- peso bills and, in some cases, small-denomination coins -- to pay for their lattes and iced coffees.

It’s an odd notion for anyone who’s grown accustomed to the rapid-fire experience of paying with plastic or a mobile app in U.S. and European cities. But in Mexico, cash is still king. And, if anything, its use keeps growing, the result of a deep-rooted informal economy and an ingrained distrust of major institutions.

Now, the country’s government and big banks are trying to get Mexicans to kick their cash habit. A national program called called CoDi -- short for cobro digital, or digital payment -- aims to vastly expand electronic purchases, bring a new client base to financial companies, and, most importantly, help the government crack down on illicit transactions and boost tax collection.