Tight economic conditions and increased government scrutiny of large financial transactions prompted the cartels to shift to payments in kind.
Some of the clients are users of cocaine or crack, which became more widely available in Mexico as smugglers shifted to payment in kind for the drugs they transport.
"It does not strike me as a driver for the fundamental shift to mobile payments that the industry at large is counting on," he said.
The shift to bundled payments will also spill over to drive positive change in pharmaceuticals, medical devices, diagnostic testing, imaging, and other suppliers.
The move towards a brave new cash-free world is supported by the UN Capital Development Fund's Better Than Cash Alliance, which aims to accelerate the shift to electronic payments, funded by the Bill & Melinda Gates Foundation, MasterCard and Visa.
The drive to a cashless society is supported by the UN Capital Development Fund's Better Than Cash Alliance which aims to accelerate the shift to electronic payments, funded by the Bill & Melinda Gates Foundation, MasterCard and Visa among others.
Catapulted by the biggest initial public offering in American history, Visa shares soared 28percentt in their stock market debut on Wednesday as investors bet an accelerating shift to electronic payments will enrich the company.
The shift to digital payments and money transfers will be mind-boggling, insists Leonhard, who believes anything at a low-level range of £5 to £500 will increasingly be done outside of a traditional bank for a fraction of the cost.
But as The New York Times reported earlier this year, consumers are simply not making the shift to mobile payments.
"Contactless is as revolutionary as the shift to internet payments was five years ago.
Nonetheless, the Affordable Care Act, President Obama's health care law, has helped encourage a shift to Advocate's payment model.
