Mexico’s “Buy Now, Pay Later” Boom: A $13.85 Billion Opportunity
In Mexico, deferring payments is no longer exclusive to credit cards. The Buy Now, Pay Later (BNPL) model, known as “compra ahora y paga después,” is transitioning from an emerging alternative to a pillar of digital consumption. The numbers speak for themselves: the country is poised to have one of the largest markets in Latin America for this segment.
Rapid Market Growth & Projections
According to the 2026 Research and Markets Business and Investment Report, the Mexican BNPL market is projected to grow by 27.6% annually, reaching $5.08 billion in 2026. This follows solid growth between 2022 and 2025 with a compound annual growth rate of 29%. The trend doesn’t stop there; the study projects the sector will expand from $3.98 billion in 2025 to $13.85 billion in 2031, with a compound annual growth rate of 22.2%. In just six years, the market is expected to nearly triple in size.
How Does BNPL Work?
Buy Now, Pay Later (BNPL) is a financing scheme that allows consumers to acquire a product or service immediately and defer the cost into several small installments, often without interest if paid on time. It functions as an express credit integrated directly into the checkout process; the user makes an initial payment at the time of purchase and settles the remainder in weeks or months, either in monthly or bi-weekly payments.
This method has develop into particularly common for smaller ticket purchases such as clothing, electronics, home accessories, or recurring orders on e-commerce platforms.
The Risks of Flexible Payments
Convenience comes with caveats. If a consumer is late with payments, fees and higher interest rates than traditional loans can apply, quickly increasing the original debt. By reducing the “pain of paying,” BNPL can encourage impulse purchases and the accumulation of multiple simultaneous payments, straining budgets.
It’s a useful tool for managing cash flow, but only when installments comfortably fit within monthly income.
The Perfect Storm for BNPL Expansion
Research and Markets identifies the driving forces as e-commerce and physical retail, where consumers seek more payment flexibility without the require for bank procedures. The BNPL formula is simple: quick approval, few barriers, bi-weekly or monthly payments, and a 100% digital process.
For a population where almost half still lacks access to formal credit, the accelerated adoption is almost inevitable.
Fintech Mexico reports that nearly 49.5% of the adult population in Mexico does not have access to formal credit, while only 37% used any type of traditional financing in 2024. BNPL serves as an entry point into the financial system, especially for young people or those without a credit history.
Automated decisions and data-driven risk engines allow for purchase approvals in seconds, something traditional banking still struggles to replicate with the same agility.
Key Players in the Mexican BNPL Market
Growth creates winners. The report identifies Kueski, Mercado Pago, Aplazo, Nelo, and Atrato as key players in market share and ecosystem development. These companies are present in both online and physical points of sale, directly integrated into store checkouts, marketplaces, and supermarkets. Their strategy isn’t just financing purchases; it’s becoming the default payment option.
The impact is already visible in major events. According to El Financiero, during the 2025 Hot Sale, 87% of consumers used some form of financing, and 31% already paid with BNPL, solidifying its position as one of the favorite methods. Retailers like Soriana have even partnered with Kueski to offer bi-weekly payments without bank procedures. BNPL has moved beyond a niche market and is now directly competing in the shopping cart.
Beyond Convenience: Increased Spending & Emerging Risks
The appeal of the model also has implications. Its advantages include access without a card, greater payment transparency, and an increase in average ticket size. Fintech Mexico estimates increases of around 30% for businesses.
However, You’ll see limits: small credit lines, the risk of over-indebtedness if plans accumulate, and the need for financial education. Rather than replacing traditional credit, the consensus within the sector is that it functions as a complement. For large purchases or credit history building, banks remain relevant. BNPL covers everyday expenses.
Frequently Asked Questions (FAQ)
What is BNPL? BNPL, or Buy Now, Pay Later, is a financing option that allows you to split purchases into smaller installments.
Is BNPL a good option for me? It can be, if you are confident you can create the payments on time. Be aware of potential fees for late payments.
What companies offer BNPL in Mexico? Kueski, Mercado Pago, Aplazo, Nelo, and Atrato are key players in the Mexican BNPL market.
Is BNPL the same as a credit card? No, BNPL typically offers shorter repayment terms and may not require a credit check.
What is the future of BNPL in Mexico? The market is expected to continue growing rapidly, reaching $13.85 billion by 2031.
Pro Tip: Always read the terms and conditions before using a BNPL service to understand the fees and interest rates.
Did you know? Nearly half of the adult population in Mexico does not have access to formal credit, making BNPL a valuable alternative.
What are your thoughts on the rise of BNPL? Share your experiences and opinions in the comments below!
