Latin America Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

This title is a bundled offering combining 6 reports, covering regional insights along with data centric analysis at regional and country level:

Key Insights

BNPL Enhances Financial Inclusion for Underbanked Populations

• In Latin America, BNPL is a critical financial inclusion tool, offering access to credit for the underbanked majority. Major players like MercadoPago, Kueski, and Creditas have developed installment plans tailored to consumers without traditional banking services. These offerings are most prominent in Brazil, Mexico, and Colombia, where over 40% of the population lacks access to formal credit products.
• Latin America's financial infrastructure has historically excluded large portions of the population due to high lending rates, limited bank branch networks, and rigid credit approval systems. The widespread adoption of digital wallets (e.g., MercadoPago, RappiPay) and smartphone penetration have enabled fintech providers to reach these consumers, offering flexible, low-barrier credit alternatives through BNPL services.
• BNPL will play an increasingly important role in financial inclusion. By offering tailored products with shorter repayment cycles and reduced paperwork, providers will help bring millions into the formal credit system, improving credit histories and financial literacy.

Rising Inflation Makes BNPL a Budgeting Tool

• Consumers in countries like Argentina, Brazil, and Venezuela rely on BNPL to stabilize their spending amidst high inflation. BNPL allows users to defer payments for essential purchases such as home appliances and electronics, minimizing the impact of rapidly rising prices.
• Latin America has one of the highest inflation rates globally, with Argentina experiencing inflation above 100% annually. Consumers in these markets prioritize payment plans to manage fluctuating prices and preserve their short-term liquidity. Providers are also introducing longer repayment plans to accommodate customers facing economic hardship.
• BNPL will become a critical financial tool in inflation-hit economies, helping consumers manage cash flow more effectively. However, due to economic volatility, providers may face higher default risks and increased operating costs, requiring robust credit risk management strategies.

BNPL Growth Driven by Local E-Commerce Giants

• E-commerce platforms such as MercadoLibre, Tiendanube, and Dafiti are key drivers of BNPL adoption in Latin America. These platforms have integrated installment payment options to attract new and repeat customers. MercadoLibre's MercadoPago division, for instance, reported a 50% increase in BNPL usage during major sales events in 2024.
• Latin America's e-commerce sector has grown rapidly, driven by increasing digital penetration and improved logistics infrastructure. BNPL solutions enhance purchasing power by allowing consumers to split high-value purchases across multiple payments, which boosts cart conversion rates and customer loyalty.
• BNPL adoption will continue to rise as regional e-commerce platforms expand their reach into smaller cities and rural areas. Partnerships between BNPL providers and merchants will further solidify installment payments as a preferred payment method in online retail.

Small and Medium Enterprises (SMEs) Drive Offline BNPL Expansion

• BNPL is expanding beyond e-commerce into offline retail, particularly through partnerships with electronics, home improvement, and fashion SMEs. Credits have partnered with local retailers in Brazil to provide POS installment options, while similar initiatives are underway in Mexico.
• Many SMEs across Latin America have limited access to traditional financing options for their customers. BNPL offers a solution that helps increase sales for SMEs by providing consumers with more flexible payment options. Additionally, growing trust in digital payment platforms enables faster adoption of BNPL at physical stores.
• Offline BNPL adoption will accelerate, particularly in urban and semi-urban areas. Providers focusing on SME partnerships are expected to gain market share, although regulatory compliance will become more critical as the market matures.

Travel Sector Slow to Recover but Shows Potential

• Unlike regions such as Asia-Pacific, where BNPL for travel has grown rapidly, Latin America is experiencing slower adoption in this sector. However, airlines such as LATAM and travel platforms like Despegar have begun offering installment plans for international travel, indicating future potential for growth.
• Economic instability and high costs related to currency devaluation have limited demand for international travel financing. Nevertheless, as economies stabilize and tourism recovers, middle-income consumers will seek BNPL options for flights, vacation packages, and accommodations.
• BNPL adoption in travel is likely to accelerate as Latin American economies recover. Partnerships between BNPL providers and airlines, hotels, and travel agencies will play a key role in increasing travelers' affordability.

Super Apps Dominate BNPL Ecosystems

• Super apps like Rappi and MercadoLibre increasingly integrate BNPL services across their ecosystems. These apps offer users installment options for e-commerce and services like food delivery, grocery shopping, and digital wallet transactions.
• The all-in-one nature of super apps provides convenience and flexibility, making BNPL integration a natural fit. These platforms increase customer engagement and transaction frequency by embedding installment plans within multiple services, thereby driving revenue growth.
• Super apps will solidify their dominance in Latin America's digital payments landscape. BNPL providers that secure partnerships with these platforms will achieve rapid scalability and deeper market penetration.

Competitive Landscape and Regulatory Developments

Current State of the BNPL Market

• E-commerce as a Growth Driver: BNPL services are embedded within key e-commerce platforms like MercadoLibre, Amazon Latin America, and Dafiti. These platforms offer installment options tailored to first-time buyers and small business owners, driving the adoption of BNPL in major markets like Brazil, Mexico, and Argentina.
• Focus on Financial Inclusion: With millions of consumers lacking access to traditional credit products, BNPL is filling a crucial gap by offering low-cost or interest-free installments. Providers like Nubank and MercadoPago have developed solutions targeting underbanked populations, enabling flexible payments for daily purchases.
• Expansion into Physical Retail: While e-commerce remains the core BNPL channel, providers are increasingly integrating their services with offline retailers in sectors such as electronics, fashion, and travel. This omnichannel strategy aims to reach consumers who prefer in-person shopping experiences.

Key Players and New Entrants

• Leading domestic and regional providers include MercadoPago, Nubank, and Aplazo, all of which offer online and offline BNPL solutions. MercadoPago dominates in multiple countries due to its strong integration with MercadoLibre, Latin America’s largest e-commerce platform.
• Global players like Klarna and Afterpay are expanding into Latin America through strategic collaborations with local e-commerce platforms and retailers. These providers are introducing advanced features like personalized repayment plans to compete with established domestic players.

Recent Launches, Mergers, and Acquisitions

• Nubank’s Healthcare BNPL Initiative (Brazil): Nubank introduced BNPL options for healthcare in collaboration with private hospitals and clinics, allowing patients to pay medical expenses in installments. This move targets middle-income families seeking greater financial flexibility for essential services.
• Aplazo’s Growth in Mexico: Aplazo secured new partnerships with Mexican fashion retailers, enabling more customers to access zero-interest installment plans. This initiative focuses on first-time BNPL users in urban areas.
• Limited M&A Activity in the Region: While there have been no major mergers in the past year, providers are emphasizing partnerships with e-commerce platforms and banks to expand their reach and diversify their service offerings.

Anticipated Competitive Dynamics

• Rural Expansion and Financial Inclusion: Providers are expected to focus on expanding into rural and underserved areas where access to traditional financial services is limited. This expansion will be driven by partnerships with logistics companies, retailers, and fintech platforms.
• Investment in Technology: Providers will likely invest in AI and data analytics to improve credit risk assessment and tailor repayment options to diverse consumer needs. These innovations will be key in driving adoption and managing default risks.
• Sector Diversification: BNPL services are expected to grow in non-retail sectors, including healthcare, education, and travel. By offering installment plans for tuition, medical expenses, and vacation bookings, providers aim to diversify their revenue streams and capture new consumer segments.

Regulatory Changes

• Regulatory Sandbox Initiative (Colombia): The government launched a fintech regulatory sandbox to test innovative BNPL models. This initiative allows fintech companies to pilot new credit and payment products under government oversight, focusing on consumer protection and financial inclusion.
• Data Protection Law in Mexico: Mexican authorities have introduced new guidelines for digital finance providers, including BNPL services, emphasizing stricter compliance with data privacy and security measures. Providers must improve data handling practices to align with global standards like GDPR.
• Financial Stability Regulations (Argentina): Argentina’s central bank has introduced new oversight measures for digital lenders, including BNPL operators, to ensure market stability. The regulations include regular reporting on credit performance and risk management practices.

Scope

BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel

• Online Channel
• POS Channel

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

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

Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

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

Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in Latin America: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Latin America. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.