News • 07.11.2022

Insights on the 'Buy now, pay later' market in Latin America to 2028

The BNPL payment industry in Latin America has recorded strong growth over the last four quarters, supported by increased e-commerce penetration

The "Latin America 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's offering.

A busy street in Mexico City
Source: Jezael Melgoza / Unsplash

The BNPL payment industry in Latin America has recorded strong growth over the last four quarters, supported by increased e-commerce penetration along with the impact of economic slowdown due to disruption caused by Covid-19 outbreak.

According to the publisher, BNPL payments in the region are expected to grow by 61.3% on an annual basis to reach US$15,395.1 million in 2022.

Medium to long term growth story of BNPL industry in Latin America remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 29.6% during 2022-2028. The BNPL Gross Merchandise Value in the region will increase from US$9,547.1 million in 2021 to reach US$72,891.8 million by 2028.

Across the Latin American region, where half 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.

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 more buying freedom and an option to select the retailer they want to shop from while using the BNPL payment method, firms are launching an open-loop payment system. For instance,

  • 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.

While the deferred payment method has a share of retail sales in many countries, BNPL is still a novel concept in the largest Latin American market. However, the evident advantages to customers and store owners alike, such as higher purchasing power and increased conversion rates, showcase the significant potential of BNPL in Brazil. Consequently, the publisher expects Brazil's market to record strong growth over the next three to four years.

Firms are adopting a B2B model with a focus on business users in Brazil

Along with an increasing focus on consumers, firms are also adopting a B2B model focusing on business users in Brazil. Both domestic and global players have recently expanded in the B2B BNPL space in the country. For instance,

  • Letsbank, one of the players in the B2B BNPL segment, has launched a point-of-sale credit solution for micro and small retailers in Brazil. Notably, the digital bank forged a strategic alliance with Omie, an ERP software provider for micro and small businesses, to add the deferred payment method to its system. The firm aims to expand its credit offering with differentiated strategies. As of June 2022, the firm is offering BNPL products to beverage distributors, which sell to businesses such as restaurants, bars, and bakeries.
  • In June 2022, Sezzle, the United States-based BNPL startup, announced the launch of its B2B BNPL services in Brazil. The company invests BRL 7 million in the first year, BRL 15 million in the second, and BRL 25 million in the third to launch operations throughout the nation.The firm entered into a strategic collaboration with Nuvemshop, the e-commerce platform. More than 90,000 online stores associated with Nuvemshop can offer the BNPL payment method to their customers.

The global pandemic outbreak has accelerated digitalization among retailers, and many retailers are turning to online channels. These players, including Letsbank and Sezzle, act as sales accelerators for the country's small and medium-sized businesses.

The full report can be found here.

Source: Research and Markets

related articles:

popular articles:

Thumbnail-Photo: Domo releases annual “Data Never Sleeps” infographic...
05.10.2022   #retail #digitization

Domo releases annual “Data Never Sleeps” infographic

A decade of minute-by-minute data shows 1700% increase in digital engagement on some platforms

Domo has released the 10th edition of its Data Never Sleeps (DNS) infographic, the annual glimpse at how much data is generated on the internet every minute by the ways people interact online. Over the last decade of chronicling the world's data ...

Thumbnail-Photo: E-commerce: Success with digital specialty shops?...
16.01.2023   #online trading #e-commerce

E-commerce: Success with digital specialty shops?

Three small retailers show how they celebrate online success with unusual products

In the German retail sector, digitization has never arrived across the board. Many smaller retailers in particular still do not have an online shop. On the other hand, there are retailers who show how to gain a foothold in online trading – ...

Thumbnail-Photo: First retailers announced for Royalmount shopping centre...
11.11.2022   #brick and mortar retail #retail

First retailers announced for Royalmount shopping centre

Louis Vuitton, Gucci, Tiffany & Co. and RH with new presence in Montreal's new Midtown destination

Royalmount, Montreal's future destination for over 170 stores including 60 restaurants and experiential attractions, has announced that Louis Vuitton, Gucci, Tiffany & Co., RH, Sandro and Maje have been confirmed for the major new retail and ...

Thumbnail-Photo: E-Commerce Berlin Expo 2023
21.11.2022   #e-commerce #retail

E-Commerce Berlin Expo 2023

Be inspired by e-commerce trends, use cases, forecasts and presentations from leading industry experts

The E-Commerce Berlin Expo is the largest pure-play e-commerce event in the capital city of Germany. The conference attracts over 8,000 visitors and more than 200 exhibitors, making it an insightful e-commerce fest. ...

Thumbnail-Photo: Christmas World
23.01.2023   #event #marketing

Christmas World

03.02.2023 - 07.02.2023 | Frankfurt, Germany

The trade fair for the busiest time of the yearChristmas World focuses on the strongest-selling and most emotional time of the year and exploits the success factor of experience at the point of sale like no other consumer-goods trade fair. This ...

Thumbnail-Photo: How to win the Amazon algorithm
20.10.2022   #online trading #event

How to win the Amazon algorithm

Salsify webinar on 27th October 2022

Amazon’s data shows that 70 percent of Amazon customers never click past the first page of search results. But how can your brand’s products reach - and stay on - the first page of search results? Product content is a main component ...

Thumbnail-Photo: Macy’s announces sustainable initiatives to drive a more circular...
30.09.2022   #sustainability #Tech in Retail

Macy’s announces sustainable initiatives to drive a more circular future

Through its social purpose platform, Mission Every One, Macy’s, Inc. is committed to creating a brighter future for all

Macy’s, Inc. has provided an update detailing its achievements towards its long-term sustainability goals – including initiatives that promote circularity throughout its value chain. ...

Thumbnail-Photo: MWC Barcelona
23.01.2023   #Tech in Retail #mobile shopping

MWC Barcelona

27.02.2023 - 02.03.2023 | Barcelona, Spain

Where technology, community and commerce convergeMWC Barcelona is the largest and most influential event for the connectivity ecosystem. Whether a global mobile operator, device manufacturer, technology provider, vendor, content owner, or simply ...

Thumbnail-Photo: How the COVID pandemic has upended brick-and-mortar retailing...
17.10.2022   #brick and mortar retail #customer satisfaction

How the COVID pandemic has upended brick-and-mortar retailing

Consumer behavior: “Ten years of digital transformation happened in two years”

There is no question that the Corona pandemic has changed the retail industry. Brian Dammeir, President North America at payment service provider Adyen, explains clearly which developments ...

Thumbnail-Photo: Schnucks launches Schnucks Now 30-minute delivery in all markets...
31.10.2022   #app #smartphone

Schnucks launches Schnucks Now 30-minute delivery in all markets

A new virtual storefront for fast delivery in partnership with Instacart

As Schnuck Markets, Inc. continues to expand its digital convenience offerings for customers, the company, in partnership with Instacart, is introducing “Schnucks Now” – delivery in as fast as 30 minutes. ...


7 rue de Madrid
75008 Paris