Dublin, Dec. 06, 2022 (GLOBE NEWSWIRE) -- The "Mexico Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments are expected to grow by 55.1% on an annual basis to reach US$4,576.6 million in 2022.
Medium to long term growth story of BNPL industry in Mexico remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 22.8% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$2,951.1 million in 2021 to reach US$15,728.7 million by 2028.
Across the Latin American region, where 50% of the population falls under the underbanked category, buy now pay later (BNPL) has given way for lenders to reach the mass market. This is evident from the growing adoption of BNPL services among consumers over the last two years. While initially driven by the pandemic outbreak, the BNPL sector's growth has continued even as the impact of the pandemic started to diminish.
Over the last two years, several innovative Fintech firms have entered the BNPL space, including Kueski and Nelo, driving consumer adoption and market growth in Mexico. Notably, the market is so huge in the Latin American market that players can collaborate to drive growth rather than compete against each other. The publisher expects collaboration between players will drive sustainable growth in the Mexican BNPL industry.
One of the reasons global players have kept a distance from Mexico is that credit data is not easily available due to the lack of credit history among Mexicans. This is where collaboration with domestic players, who are using innovative technologies to determine the credit health of the customers, can boost the presence of global players in the sector. The publisher expects the industry to record steady growth over the next three to four years as the market continues to mature.
BNPL firms are launching an open-loop payment system giving more buying freedom to consumers in Mexico
Globally, BNPL providers partners with online and offline retailers to provide consumers with an option to choose deferred payment services when buying from partner retailers. However, this creates a closed-loop system, thereby restricting consumer choices.
However, to give Mexican consumers with more buying freedom and an option to select the retailer they want to shop from while getting to use the BNPL payment method, firms are launching an open-loop payment system.
In April 2022, Nelo, one of the leading BNPL services in Mexico, announced the launch of its all-in-one app, which allows consumers to shop from any online store in the country. For launching the payment option, the firm partnered with Mastercard. Consumers can use the BNPL payment method at any online store wherever Mastercard is accepted in Mexico.
The publisher expects more such innovative product launches in the country over the next three to four years as the demand for BNPL services continues to grow among Mexicans.
BNPL firms are recording strong growth in short-term credit disbursement in Mexico
Mexico has one of the highest percentages of unbanked and underbanked customers around the world. As a result of this, BNPL firms have gained widespread adoption among Mexicans over the last two years. This is evident from the strong growth recorded by these players in the short-term credit disbursement in the country.
In March 2022, Kueski, one of the leading BNPL providers in Mexico, announced that the firm had made nearly US$1 billion in loans to 1 million users in the country. Notably, the BNPL solution offered by Kueski is accepted at over 2,000 stores, as of March 2022, compared to just 56 a year before. This shows the rapidly growing popularity of BNPL services among both merchants as well as consumers.
The publisher expects the trend to continue from the short to medium-term perspective as more and more consumers turn to BNPL products to gain access to short-term credit in the country.
Global BNPL firms are targeting the B2B sector to expand their presence in the Mexican market
Like consumers, small and medium-sized enterprises (SMEs) also find it difficult to access credit in the Latin American market. To support SMEs and drive their growth, global BNPL firms are targeting the B2B sector in the country.
In February 2022, Keo World, a United States-based BNPL startup focused on SMEs, announced that the firm plans to expand its presence in Mexico. The announcement from the firm came after Keo World secured US$500 million in a debt facility to support its global expansion plan.
With the B2B BNPL sector expected to record strong growth over the next three to four years, the publisher expects more domestic and global firms to enter the B2B market from the short to medium-term perspective in Mexico.
Scope
Mexico BNPL Market Size and Spending Pattern
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later Operational KPIs
- Buy Now Pay Later Revenues, 2019 - 2028
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Merchant Commission, 2019 - 2028
- Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
- Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
- Buy Now Pay Later Accounts, 2019 - 2028
- Buy Now Pay Later Bad Debt, 2019 - 2028
Mexico Buy Now Pay Later Market Share Analysis by Key Players (Nelo, Kueski, finvero, Aplazo, Atrato)
Mexico Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
- Online Channel
- POS Channel
Mexico Buy Now Pay Later in Retail Shopping: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later in Home Improvement: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later in Other: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Mexico Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Buy Now Pay Later Sales Uplift by Product Category
- Buy Now Pay Later Spend Share by Age Group
- Buy Now Pay Later Gross Merchandise Share by Income
- Buy Now Pay Later Gross Merchandise Value Share by Gender
- Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
Companies Mentioned
- Nelo
- Kueski Pay
- Circulo de Credito
- Atrato
- Graviti
- Aplazo
- wenance
For more information about this report visit https://www.researchandmarkets.com/r/patg06
