Understanding BNPL and Its Rise in Mexico
As the Buen Fin and holiday seasons approach, financing options like the “buy now, pay later” (BNPL) scheme are gaining popularity in Mexico. These mechanisms, present in many seasonal promotions, allow consumers to acquire products and pay for them in subsequent installments. While they facilitate purchases, it’s crucial to use BNPL responsibly to avoid negatively impacting personal finances.
According to Research and Markets, the BNPL industry in Mexico reached a value of $4,560 million in 2024, reflecting an annual growth rate of 40%. The surge in the BNPL model indicates growing consumer confidence in this payment method. However, experts advise planning each purchase and avoiding impulsive spending that could lead to over-indebtedness.
Benefits and Recommendations for BNPL Usage
Unlike traditional interest-free months, digital platforms like Kueski Pay, Mercado Pago, or Aplazo enable users to access financing without needing a bank card. These apps offer small credits that can be paid in several bi-weekly installments, for example, Aplazo users typically choose terms between 5 and 8 bi-week periods.
Alejandro Wieland, co-founder of Aplazo, recommends always reading and understanding the credit terms and deadlines before completing a purchase. The terms and conditions should be explicit during the purchasing process to avoid surprises.
Lisset May, senior vice president of Kueski, adds that both the platform and the user should be aware of their payment capacity and authorized amount since the financial relationship should benefit both parties.
Avoiding Debt with BNPL During the Holiday Season
Promotional seasons can encourage excessive spending. To prevent compromising your December and January budget, it’s helpful to plan expenses and set a maximum amount for gifts or acquisitions using BNPL.
Valeria González, founder of Finanzas que Valen, advises using BNPL only for durable goods and establishing a specific budget for these expenses. Another recommendation is to stick to one platform to maintain control and administration of payments.
What to Do If You Can’t Pay?
Ideally, use BNPL only if you have secure income sources to cover the committed payments. If facing difficulties, Lisset May suggests contacting the platform’s customer service channels to negotiate solutions like refinancing or new payment schemes. This way, you can avoid negative impacts on your credit history or credit bureau record.
Key Questions and Answers
- What is BNPL? Buy Now, Pay Later (BNPL) is a financing option that allows consumers to purchase products immediately and pay for them in installments over time, typically without interest.
- Who are the key players in Mexico’s BNPL market? Notable platforms include Kueski Pay, Mercado Pago, and Aplazo.
- How can I use BNPL responsibly? Plan your budget, understand the terms and conditions, and only use BNPL for durable goods. Stick to one platform for better control of your payments.
- What should I do if I can’t make a payment? Contact the BNPL platform’s customer service to discuss possible solutions, such as refinancing or adjusting your payment plan.
