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 - Q2 2024 Update

The BNPL payments in the region are expected to grow by 31.3% on an annual basis to reach US$12.5 billion in 2024.

The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 22.6% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$9.5 billion in 2023 to reach US$34.6 billion by 2029.The buy now pay later market is poised to record strong growth over the medium term in Latin America. The growth will be driven by strong adoption among underbanked and unbanked consumers. The rising consumption will also support the growth of the industry across the region over the next three to four years.

Key Developments in the BNPL Sector in Latin America

The Buy Now Pay Later (BNPL) sector in Latin America has seen significant product launches and expansions, driven by increasing demand among underbanked populations and the growth of e-commerce. Here are the key developments:

Product Launches and Innovations

Cashea in Venezuela - Cashea, a prominent BNPL service, reported over 1.2 million users within just over a year. The service is particularly appealing to consumers who previously lacked access to credit products, with more than 95% of its user base falling into this category. The company is planning to expand into two additional Latin American countries to capitalize on its growth trajectory.

Addi's Growth - Addi, a technology start-up facilitating digital trade in Latin America, allows users to pay in three equal installments without interest. The platform has gained traction due to its user-friendly approach, requiring only an ID and WhatsApp for transactions. Addi is valued at $700 million and continues to expand its services across the region.

Klar's Funding - Klar, a Mexican fintech company, secured $100 million in debt financing to enhance its credit offerings, which include BNPL services. This funding aims to improve access to credit for the 90% of Mexicans who do not have traditional credit products.

Strategic Partnerships

Klar, a Mexican fintech firm, secured a $100 million debt facility from Victory Park Capital. This funding is intended to bolster Klar's range of credit products, including BNPL, aimed at the underbanked and unbanked populations in Mexico, where access to traditional credit is limited.

Addi and Retail Partners - Addi has been actively forming partnerships with various retailers to expand its BNPL services. The company allows customers to make purchases in instalments, and its collaborations with retailers enhance consumer access to its payment solutions, tapping into the growing e-commerce market in the region.

Nelo and E-commerce Platforms - Nelo has established partnerships with major e-commerce platforms, including Amazon and Mercado Libre. This integration allows customers to utilize Nelo's BNPL services directly at checkout, facilitating a seamless shopping experience and driving adoption among online shoppers.

Cashea's Expansion into New Markets - Cashea, a leading BNPL service in Venezuela, is planning to expand into two additional Latin American countries. This move aims to leverage its successful model of serving previously unbanked consumers, thus forming new partnerships with local retailers and service providers in those markets.

Mergers and Acquisitions

The Buy Now Pay Later (BNPL) sector in Latin America has seen several significant mergers and acquisitions. Here are the key developments:

Nelo's Expansion through Acquisitions - Nelo has been actively pursuing acquisitions to bolster its presence in the BNPL space. By acquiring smaller fintech firms, Nelo aims to enhance its technology stack and improve service delivery to its customers across various e-commerce platforms.

Klar's Funding and Expansion - While not a direct acquisition, Klar, a Mexican fintech company, raised $100 million in debt financing from Victory Park Capital. This funding is intended to enhance its BNPL services and support its growth strategy, which may include future acquisitions to broaden its market reach.

The mergers and acquisitions in the BNPL sector in Latin America show companies' efforts to strengthen their positions and meet the growing consumer demand for flexible payment options.

Regulatory Changes

The BNPL sector in Latin America has seen no major regulatory or government policy changes mentioned, with search results mainly focusing on market trends, growth projections, partnerships, and mergers rather than regulatory updates.

The strong growth of BNPL adoption, especially among underbanked and unbanked consumers, suggests a relatively favourable regulatory climate that allows these services to expand access to credit.

The entry of new players with innovative BNPL offerings and the influx of venture capital and private equity funding indicate a regulatory framework that is supportive of fintech innovation in this space.

The Venezuelan market is highlighted as experiencing strong BNPL growth due to measures that have impacted traditional bank lending, creating an opportunity for BNPL firms to offer higher credit limits. This implies some regulatory changes in Venezuela, though the specifics are not provided.

The BNPL sector in Latin America is experiencing dynamic growth, driven by innovations, strategic partnerships, and expansions. Companies like Cashea and Addi are leading the charge with substantial user bases and significant valuations, while Klar is enhancing its offerings through major funding. Strategic collaborations with retailers and e-commerce platforms are broadening access to BNPL services, exemplified by Nelo's aggressive acquisition strategy. Despite a lack of detailed regulatory updates, the sector benefits from a supportive regulatory environment that fosters fintech innovation. This overall momentum reflects a robust and expanding BNPL landscape catering to underbanked and unbanked populations across the region.

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

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This title is a bundled offering, combining 6 reports (348 tables and 450 charts).

Country reports in this bundled offering provide in-depth analysis of Buy Now Pay Later industry. Below is a summary of key market segments offered at country level:

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 55 tables and 71 charts. Below is a summary of key market segments:

BNPL Market Size and Spending Pattern, 2020-2029

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

Buy Now Pay Later Revenue Analysis, 2020-2029

• 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, 2020-2029

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

BNPL by Purpose, 2020-2029

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

BNPL by Business Model, 2020-2029

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

BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of Latin America BNPL market spend and significant prospects.