Brazil Buy Now Pay Later Business and Investment Report 2023: BNPL Payments are Expected to Grow by 21.3% to Reach $6.2 Billion in 2023 - Forecasts to 2028

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Nov 16, 2023, 13:45 ET

DUBLIN, Nov. 16, 2023 /PRNewswire/ -- The "Brazil Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments in Brazil are expected to grow by 21.3% on an annual basis to reach US$6.2 billion in 2023.

Medium to long term growth story of BNPL industry in Brazil remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 13.7% during 2023-2028. The BNPL Gross Merchandise Value in the Brazil will increase from US$5.1 billion in 2022 to reach US$11.8 billion by 2028.

The BNPL payment industry in Brazil has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

Brazil already has a well-established installment payment ecosystem. Most consumers have adopted credit cards to boost their purchasing power, especially for higher-ticket purchases. However, the lack of formal employment and higher annuity fees has left many Brazilians underbanked. With the majority of the population lacking access to credit cards, buy now pay later schemes have turned out to be the biggest winner over the last few years in Brazil.

The adoption of BNPL schemes is expected to surge significantly among consumers amid the rising inflation and surging cost of living. The robust digital infrastructure and integration of the Pix system with BNPL schemes are also expected to drive growth momentum for the industry over the next three to four years. Consequently, the publisher maintains a robust growth outlook for the sector from the short to medium-term perspective in Brazil.

Integrating BNPL schemes into the Pix platform is expected to drive transaction volume in Brazil

The Central Bank of Brazil launched Pix, the real-time payment method in November 2022. Since its launch, Brazil has recorded strong growth in its digital payments ecosystem. To further accelerate the growth of its innovative Pix platform, the Central Bank has been constantly introducing new features, such as Guaranteed Pix.

The new feature allows fintech firms and banking institutions to obtain credit for instant payments that are repaid in 12 to 24 interest-free installments. This is very much similar to the BNPL schemes. Providers such as Addi have started to offer interest-free Pix installments for e-commerce purchases. The integration of BNPL to the Pix platform is expected to accelerate BNPL transaction volume in Brazil over the next three to four years.

As Guaranteed Pix lowers the transaction costs for merchants, the publisher expects more retailers to start providing their customers with a flexible payment scheme in the form of different BNPL options. This will also supplement the growing demand for BNPL services among consumers, subsequently driving the growth of the overall BNPL industry in Brazil.

BNPL startups are raising funding rounds to improve customer experience and strengthen the technology platform

Amid the rising competitive landscape in the Brazilian BNPL space, fintech firms and startups operating in the market are raising funding rounds to further create innovative experiences for their users, while also strengthening their platform services.

In September 2022, Pagaleve, the Brazil-based fintech, announced that the firm had raised US$25 million in a Series A funding round, which has been led by Salesforce Ventures. Founder Collective, Janeiro Energy, OIF Ventures, and others, have also participated in the funding round.

The fintech firm operates on a B2B2C business model and is largely focused on the e-commerce market. The target audience for the firm are consumers that are left out of the formal banking system and have trouble accessing credit card products in Brazil.

With the new funding round, the firm aims to improve customer experience, while also boosting its merchant network. By the end of 2022, the firm plans to increase its merchant network from 500 to 1,000.

With BNPL schemes growing in demand among Brazilians, the publisher expects more fintech firms, including startups operating in the BNPL space, to raise funding rounds from the short to medium-term perspective.

BNPL schemes are expanding their presence in the offline market with Pix payment integration in Brazil

The pandemic-infused restrictions have eased out in Brazil. As a result, BNPL providers are also targeting growth in the offline segment, as consumers head out to physical stores for completing their purchases. This is expected to drive market growth in the offline segment over the next three to four years.

However, the integration of BNPL schemes with the Pix payment system also ensures that the payment method is available for retail purchases across the country. This will drive significant transaction volume and value in the offline category, thereby driving the overall industry growth in Brazil from the short to medium-term perspective.

This report provides a detailed data centric analysis of Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Brazil. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

Scope

Brazil Buy Now Pay Later Market Share Analysis by Key Players

Cleo
ADDI
DiniePay

Brazil BNPL Market Size and Spending Pattern, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later Revenue Analysis, 2019-2028

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

Brazil Buy Now Pay Later Operational KPIs & Statistics, 2019-2028

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

Brazil BNPL by Purpose, 2019-2028

Convenience - Short Term Loans
Credit - Long Term Loans

Brazil BNPL by Business Model, 2019-2028

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

Brazil BNPL by Merchant Ecosystem, 2019-2028

Open Loop System
Closed Loop System

Brazil BNPL by Distribution Model Analysis, 2019-2028

Standalone
Banks & Payment Service Providers
Marketplaces

Brazil BNPL Analysis by Channel, 2019-2028

Online Channel
POS Channel

Brazil Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Groceries: Market Size and Forecast

Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Transaction Volume Trend Analysis

Brazil 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

For more information about this report visit https://www.researchandmarkets.com/r/ymyn2r

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