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

According to PayNXT360, BNPL payment market in Mexico is expected to grow by 33.5% on annual basis to reach US$6,099.9 million in 2025.

The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 54.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 24.9% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 4,569.7 million to approximately USD 18,517.6 million.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Mexico, 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.

PayNXT360’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.

Key Insights

The BNPL market in Mexico is evolving rapidly, driven by increasing consumer demand for flexible credit solutions and digital commerce expansion. The sector’s accelerated growth, fueled by financial inclusion efforts and changing consumer preferences, is projected to maintain strong momentum, reaching billions in transaction volume over the next few years. The expansion of BNPL into physical retail further broadens its accessibility, allowing consumers who primarily shop in-store to benefit from installment-based purchasing, thereby strengthening the transition from cash to digital payments.

Strategic partnerships between BNPL providers and established brands amplify adoption by embedding BNPL services within familiar consumer ecosystems. These collaborations help fintech companies scale faster and provide merchants with alternative financing tools to boost sales. Over the next few years, BNPL is expected to become a mainstream payment method in Mexico, reshaping the financial landscape by offering more accessible credit solutions and driving economic participation across diverse consumer segments.

Accelerated BNPL Market Expansion

• The BNPL market in Mexico is expanding rapidly, driven by increased accessibility to credit and changing consumer preferences. In 2023, the sector grew by 31%, reflecting a shift toward alternative financing solutions catering to a broader range of consumers. This growth is closely tied to the rise of digital commerce, where flexible payment options have become a critical factor in purchase decisions.
• Several factors fuel this expansion, including the boom in e-commerce, which has created greater demand for installment-based payment options. Financial inclusion initiatives have also played a crucial role, allowing individuals without traditional banking relationships to access credit through BNPL services. Additionally, consumers increasingly opt for BNPL over credit cards due to its transparent fee structures and ease of use, further driving adoption.

Integration of BNPL in Physical Retail

• The expansion of BNPL into physical retail spaces marks a significant shift in the Mexican payments landscape. While BNPL has traditionally been associated with online shopping, companies such as Kueski are now introducing in-store payment options using QR codes. This development allows consumers to access installment-based payments at brick-and-mortar stores, making BNPL a more versatile and widely accepted payment method.
• One key driver of this trend is Mexican consumers' enduring preference for in-person shopping. Despite the growth of e-commerce, a large segment of the population still relies on cash transactions for retail purchases. By integrating BNPL into physical stores, providers can bridge the gap between digital credit solutions and traditional shopping habits, encouraging greater adoption of digital payment methods.
• Over the next few years, integrating BNPL in brick-and-mortar stores is expected to accelerate the shift toward digital transactions. As consumers become more comfortable using BNPL in different retail environments, the financial ecosystem could become more inclusive, offering more accessible credit options. This shift is also likely to drive increased consumer spending, benefiting retailers and BNPL providers as adoption grows.

Strategic Partnerships Enhancing BNPL Reach

• Strategic partnerships are crucial in expanding BNPL adoption in Mexico, enabling providers to reach new customer segments and enhance their service offerings. Collaborations such as the Shein-Stori co-branded credit card highlight how fintech companies and retailers work together to integrate BNPL into existing financial ecosystems. These alliances not only increase accessibility to BNPL services but also create more tailored financing options for consumers.
• The primary driver of this trend is partnerships' ability to accelerate market penetration and diversification. By aligning with established companies, BNPL providers can tap into existing customer bases and leverage brand trust to encourage adoption. This approach reduces acquisition costs and enhances scalability, making BNPL a competitive alternative to traditional credit products.
• Over the next few years, strategic alliances are expected to further solidify BNPL as a mainstream payment method in Mexico. These collaborations will drive innovation in financing solutions, increasing convenience for consumers while providing merchants with new tools to boost sales. As more retailers, fintechs, and financial institutions enter the BNPL space through partnerships, the competitive landscape will likely become more dynamic and consumer-focused.

Competitive Landscape and Regulatory Developments in Mexico's Buy Now, Pay Later (BNPL) Market

The BNPL market in Mexico is expanding rapidly, driven by increasing digital adoption and demand for alternative credit solutions. Established players such as Kueski and MercadoLibre are strengthening their market positions, while new entrants and partnerships, such as the Shein-Stori collaboration, are further intensifying competition. Recent product launches, including Kueski’s in-store payment options and Shein’s co-branded credit card, indicate a shift toward more integrated financial solutions catering to online and offline consumers.

The competitive landscape is expected to become more dynamic, with players differentiating through technology-driven innovations and strategic alliances. Regulatory developments, including the push for modernized fintech laws and digital financial transaction frameworks, will be crucial in shaping market expansion. BNPL providers must balance compliance with rapid growth while addressing evolving consumer expectations, positioning Mexico as one of Latin America's key emerging BNPL markets.

Current State of the BNPL Market

• The BNPL market in Mexico is expanding rapidly as consumers seek more flexible payment options to manage their purchases. The growth of e-commerce has played a significant role in this trend, as online shoppers increasingly prefer installment-based payment solutions over traditional credit cards. In 2023, BNPL adoption surged by 31%, reflecting the increasing accessibility of credit to a broader consumer base.
• This expansion is driven by the growing demand for alternative credit solutions, particularly among individuals who lack access to traditional banking services. BNPL providers are leveraging digital platforms to offer quick and transparent financing options, making it easier for consumers to make larger purchases. As this trend continues, BNPL is expected to play a key role in reshaping the financial ecosystem in Mexico.

Key Players and New Entrants

• Kueski: As a leading BNPL provider in Mexico, Kueski has expanded its services to include in-store mobile payments using QR codes, enhancing consumers' accessibility.
• MercadoLibre: Through its fintech arm, Mercado Pago, MercadoLibre offers BNPL options and has applied for a banking license to further expand its financial services in Mexico.
• Shein and Stori Partnership: In October 2024, fashion retailer Shein partnered with Mexican fintech Stori to launch a co-branded credit card to attract more consumers to BNPL services.

Recent Launches, Mergers, and Acquisitions

• Recent developments in Mexico’s BNPL market highlight a strategic push toward expanding service accessibility. Kueski’s introduction of an in-store payment option using QR codes represents a shift toward omnichannel BNPL adoption, allowing consumers to use installment-based payments in physical retail settings. This move enhances BNPL’s reach beyond e-commerce, catering to a wider audience still prefers in-person shopping experiences.
• Similarly, the Shein-Stori partnership has resulted in the launch of a co-branded credit card, signaling growing collaboration between fintechs and retailers. This initiative broadens BNPL accessibility, attracting a diverse customer base by integrating installment financing directly into Shein’s ecosystem. These recent launches reflect the increasing competition and innovation in Mexico’s BNPL sector, which is expected to continue evolving in response to consumer demand.

Outlook

• Mexico’s BNPL market is poised for significant expansion over the next few years, with increased competition among existing players and new entrants. As providers look to differentiate themselves, strategic partnerships and technological advancements will become key growth drivers.
• With more companies investing in BNPL solutions, the industry will likely see further integration across online and offline retail environments. Innovations in digital payments and credit assessment models will enhance accessibility, attracting a broader consumer base. As the market matures, regulatory developments will also play a crucial role in shaping its trajectory, ensuring sustainable growth while addressing potential risks associated with alternative credit solutions.

Regulatory Changes

• Recent regulatory changes in Mexico are reshaping the financial landscape, focusing on digital modernization. In March 2024, new legal amendments were introduced to facilitate the electronic issuance and transfer of negotiable instruments, including bonded warehouse certificates. These measures aim to streamline financial transactions, which could affect BNPL providers by enhancing digital documentation and reducing operational inefficiencies.
• At the same time, industry leaders advocate for updates to Mexico’s fintech regulations to align with evolving technology and market dynamics. As BNPL adoption grows, a more comprehensive regulatory framework could help ensure consumer protection while fostering innovation in the sector. These regulatory shifts will be critical in shaping the future of BNPL, influencing how providers operate and expand within Mexico’s financial ecosystem.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Mexico through 58 tables and 75 charts. Below is a summary of key market segments:

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 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


Mexico Buy Now Pay Later Operational KPIs & Statistics

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

Mexico BNPL by Purpose

• Convenience – Short Term Loans
• Credit – Long Term Loans

Mexico BNPL by Business Model

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

Mexico BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Mexico BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Mexico Buy Now Pay Later Market Share Analysis by Key Players

Mexico BNPL Analysis by Channel

• 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 Travel: 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 Media and 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 Services: 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 Automotive: 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 Others: 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

• 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 Mexico: 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 Mexico. 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. Show more