Papel picado came about during the 19th century, and made using a chisel. First an intricate design is drawn on paper and covered with plastic to protect the original drawing. To make several copies at once they stack many sheets together and chisel the design out. The stack is then picked apart and hung on a string with other papers that have different designs.  This is similar to the Chinese paper cutting, but rather than being cut with scissors, in Mexico they use a chisel. 

The art of Papel Picado is officially recognized by the ministry of Tourism and culture in Mexico. The town of Huicolotla is known as the center of papel picado but in the 1930s the art spread to other parts on Mexico. It was in the 1960s that papel picado made it's way to the United States and Europe.