Introduction to BNPL and its Rising Popularity in the Tourism Sector
The “Buy Now, Pay Later” (BNPL) financing model is increasingly becoming a standard part of purchasing processes in popular tourist destinations like the United States, Europe, and Australia. In Mexico, this payment method is now starting to gain traction among independent hotels and medium-sized businesses, according to PayPal.
BNPL in International Tourism: A Growing Trend
BNPL has become commonplace in travel-related transactions, from flights to local experiences, in the US, Europe, and Australia. In contrast, Mexico is only beginning to explore this option, especially among smaller hotels and businesses. PayPal sees this as an opportunity.
Mexico’s Tourism Growth and Flexible Payment Preferences
In 2025, Mexico welcomed over 8 million international visitors, marking a 10.1% increase compared to the same month in the previous year, as per Inegi data. The demand for more flexible payment options has intensified among travelers post-pandemic.
Benefits of BNPL for Both Travelers and Tourism Businesses
Xavier Martí, PayPal’s Sales Director for Internal and Mid-Market in Mexico and Latin America, noted that BNPL usage is concentrated in high-value transactions. For travelers, it allows them to distribute expenses related to accommodation, transportation, or experiences without immediately affecting their liquidity.
Martí also highlighted that enabling BNPL helps businesses capture customers who would otherwise be lost and encourages travelers to extend their stay or choose experiences they hadn’t initially considered.
BNPL Impact on Traveler Spending and Business Retention
PayPal’s data indicates that consumers using BNPL spend 70% more on travel compared to those paying upfront. Moreover, 74% of BNPL users return for the service, fostering loyalty in a sector heavily reliant on repeat business.
Early Adoption of BNPL in Mexico’s Tourism Sector
Although technological advancements have progressed, BNPL adoption in Mexico’s tourism sector remains in its infancy. The challenge lies not only in promoting innovation but also convincing service providers that these tools can be a crucial differentiator against international competitors where deferred payments are standard.
Importance of User Experience in the Tourism Industry
PayPal emphasizes that user experience is crucial, particularly for international travelers seeking payment conveniences similar to those available in markets like the US, where BNPL is widely adopted in travel.
Market Growth and Global Significance
The Mexican BNPL market is projected to grow at an annual rate of 33.5%, reaching a value of $6,090 million in 2025. Globally, BNPL has over 400 million active accounts and 35 million affiliated businesses, including hotels and tour operators already present in Mexico.
Key Questions and Answers
- What is BNPL? Buy Now, Pay Later (BNPL) is a financing model allowing customers to split their payments into smaller, interest-free installments.
- Why is BNPL gaining popularity in Mexico’s tourism sector? The demand for flexible payment options has increased among travelers, and BNPL offers a solution to distribute expenses without affecting liquidity.
- How does BNPL benefit tourism businesses? Enabling BNPL helps capture customers and encourages travelers to extend their stay or choose additional experiences.
- What are the spending and loyalty implications of BNPL for travelers? Travelers using BNPL spend 70% more on trips and are 74% likely to reuse the service, fostering loyalty.
- Why is user experience important for BNPL in tourism? Providing a seamless and familiar payment experience is crucial, especially for international travelers accustomed to BNPL in markets like the US.
- What is the projected growth of BNPL in Mexico’s tourism sector? The Mexican BNPL market is expected to grow at an annual rate of 33.5%, reaching $6,090 million in 2025.
