- Amazon and Kueski will offer Buy Now Pay Later solutions in Mexico
- The global value of BNPL transactions will double in the next 4 years
In a significant step towards expanding the offering of financial services, Amazon Mexico has announced a partnership with fintech Kueski to offer personal loans and Buy Now Pay Later (BNPL) solutions to its customers in the country. This collaboration marks the first time Amazon provides a BNPL offering in the Mexican market.
The major advantage for users is that they won’t need to have a credit card. They can choose to pay through a linked bank account, a debit card, or even in cash (cash remains at the top in the ranking of payment methods in Mexico).
According to the agreement, Amazon will initially offer bi-weekly installment payments, allowing customers to use this feature for up to 12 purchases. Kueski will be responsible for providing financing for these purchases and determining the credit lines for each user.
Kueski is a fintech that provides financial services to users who are not eligible for traditional bank loans through its technology and data analysis criteria.
A dynamic financial market
The partnership between Amazon and Kueski is part of a broader landscape in which Mexico has stood out as a key market for fintech startups in Latin America. Less than 50% of the Mexican population has a bank account, and fintech startups are stepping in to reach the underserved population and offer financial options for everyone.
Kueski, operating since 2012, has experienced a significant increase in its value in recent years. It received $202 million in a Series C funding round at the end of 2021. Two years ago, it first launched its BNPL services.
Kueski’s growth reflects Mexico’s position as a prominent fintech hub in Latin America and its promise of future growth. Only Brazil surpasses Mexico as the leading fintech hub in Latin America.
A significant growth of the Buy Now Pay Later model is expected worldwide. However, this year will present challenges for industry players seeking profitability and diversification because the accumulation of debts is expected to grow, as consumer purchasing power continues to decline in many countries.
An analysis by Morning Consult pointed out that 14% of US adults at the end of 2023 had BNPL debts (and 40% maintained debts with credit cards).
A new study by Juniper Research projects that the global value of BNPL transactions will double in the next 4 years, from $334 billion in 2024 to $687 billion in 2028. Activity is expected to expand to new markets, with significant growth in both the US and the UK.
This collaboration between Amazon and Kueski not only represents an expansion in the offerings of financial services in Mexico but also highlights the growing role of fintech in transforming the financial landscape in Latin America.
