Latin America Buy Now Pay Later Business Report 2024: 75+ KPIs on BNPL End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics 2020-2029

DUBLIN, Feb. 23, 2024 /PRNewswire/ -- The "Latin America 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 - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 32.8% on an annual basis to reach US$22 billion in 2024.

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

The buy now pay later market is poised to record strong growth over the medium term in Latin America. The growth will be driven by strong adoption among underbanked and unbanked consumers. The rising consumption will also support the growth of the industry across the region over the next three to four years.

The medium to long-term growth story of the BNPL industry in the region remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 23.6% during 2024-2029. The BNPL gross merchandise value in the region will increase from US$16.6 billion in 2023 to reach US$63.4 billion by 2029. 

Amid the pent-up demand, BNPL providers are recording strong growth and the trend is projected to continue further in 2024. BNPL firms are also expected to venture capital and private equity funding to expand and scale their business offering over the medium term. Overall, the publisher maintains a positive growth outlook for the sector over the next three to four years.

The unbanked and underbanked consumers are driving the adoption of BNPL schemes in Latin America

A significant population proportion falls under the unbanked or underbanked category in Latin America. The rising credit demand among these consumers has aided the adoption of the buy now pay later schemes across the region and this trend is projected to continue further over the medium term. To tap into the high-growth market, new players are also entering the industry with their innovative product offerings, driving the competitive landscape in the sector.

The market growth will be also driven by the growing e-commerce industry in Latin America. The surge in smartphone penetration and internet access is driving more consumers towards online channels, leading to the adoption of digital payment solutions across the region. Furthermore, a large portion of the population is also making purchases through cash at the point of sale. This provides a growth opportunity for BNPL providers to widen their distribution and tap into the in-store transactions to drive gross merchandise value growth over the medium term.

BNPL providers are reporting strong growth in the Venezuela market amid pent-up demand for credit products

Across Latin America, the demand for BNPL schemes is on the surge, and things are no different in Venezuela. The market is reporting strong growth and providers are experiencing strong adoption of their BNPL services.

Cashea, one of the leading BNPL services in the country, has garnered more than 1.2 million users in just over a year in Venezuela, as of December 2023. To combat the inflation, the government implemented measures, which also impacted the lending capabilities of traditional banking firms. As a result, the majority of credit cards have a limit of approximately US$60. This has created a perfect growth environment for the BNPL market, with firms offering higher credit limits in comparison to banking firms, with simpler processes.

One of the factors driving the adoption of Cashea is the fact that it serves a demographic who previously did not have access to credit products. Notably, more than 95% of its total user base falls under this category. Going forward, the firm is planning to expand its presence in two more Latin American nations, targeting a higher growth rate over the next three to four years.

Firms are funding through debt and equity rounds to drive credit access in the Mexican market

According to a report from the World Bank, 90% of the Mexicans do not have access to credit products, while 50% lack a bank account. Consequently, to offer credit services to these demographics, innovative startups have entered the market. These firms are now seeking venture capital and private equity funding to drive credit access in Mexico.

Klar, a fintech firm based in Mexico, announced that the firm had raised US$100 million in debt facility from Victory Park Capital in H2 2023. The firm provides a range of credit products to underbanked and unbanked consumers, including buy now pay later, salary advances, and loans.

As of August 2023, the firm is serving 2.4 million customers and is planning to further expand its user base from the short to medium-term perspective. Klar, currently, offers credit lines starting at 1,000 pesos and going up to 30,000 pesos However, the company aims to explore potential experiments that may extend the range, potentially reaching up to 40,000 pesos.

Going forward, the publisher expects more such fintech firms to raise funding rounds and expand their product offerings. This will drive the competitive landscape, while also supporting the growth of the regional BNPL industry over the next three to four years.

Bundled Offering Combining 1 Regional and 5 Country Reports

• Latin America Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Argentina Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Brazil Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Chile Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Colombia Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook
• Mexico Buy Now Pay Later Business and Investment Opportunities (2020-2029) Databook

Scope for Each Report

BNPL Market Size and Spending Pattern, 2020-2029

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

Buy Now Pay Later Revenue Analysis, 2020-2029

• 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

Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

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

BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model, 2020-2029

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

BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

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

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

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

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

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
• Average Monthly Expense segments

For more information about this report visit https://www.researchandmarkets.com/r/tvefq4

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