Buy now, pay later is a handy short-term financing option that allows consumers to defer making purchases (BNPL). This payment option, which combines financiers, merchants, and customers, allows customers to shop both in-store and online without having to pay in full at once. It is set up using an installment plan. From smaller, more commonplace products like electronics and clothing to larger, more costly items like equipment for home construction, BNPL is a versatile financing option that may be utilized for a wide range of purchases.
Mexico Buy Now Pay Later (BNPL) Market Driving Factors and Challenges
Drivers: The expansion of the global point-of-sale installment loans industry has been driven by the growing acceptance of online payment methods in a variety of industries, including retail & consumer goods, health insurance, banking, and others. A significant demand for BNPL services has also been generated by the global increase in e-commerce sales. Furthermore, AI and machine learning technology help service providers make better decisions by helping them create models in real time. To hasten their consumer penetration in the industry, a number of businesses are creating unique AI-based models.
Challenges: There are numerous other choices, including financing payment using debit and credit cards, postdated cheques, and more. Customers and retailers in a number of developing nations, including Brazil, India, Asia, and others, are not aware of the BNPL service. Before offering users the BNPL service, credit scores must also be verified. Customers of the service can easily pay for BNPL using monthly installment options.The availability of numerous payment choices and the general lack of understanding among consumers, retailers, and merchants impede overall growth.
Impact of COVID-19 on Mexico Buy Now Pay Later (BNPL) Market
The COVID-19 pandemic had a significant impact on Mexico's Buy Now Pay Later (BNPL) industry, and it also hastened its growth as customers sought out flexible payment options in the face of unstable economic conditions. In the face of lockdowns and job losses, many turned to BNPL services to manage their finances while still having access to needs. E-commerce and the usage of BNPL solutions by both retailers and customers increased as a result of this shift. But concerns about the quantity of consumer debt were also raised by the economic fallout, as some consumers found it impossible to meet their repayment obligations because of unstable finances.
Mexico Buy Now Pay Later (BNPL) Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Affirm Holdings, Inc., Atome, Block, Inc. (Square), Klarna Bank AB (PULP), Latitude, Openpay, PayPal Holdings, Inc., Sezzle, Scalapay, Zip Co Ltd. (Zip), Others.
Mexico Buy Now Pay Later (BNPL) Market Segmentation:
By Channel: Based on the Channel, Mexico Buy Now Pay Later (BNPL) Market is segmented as; Online, Point of Sale (PoS)
By Application: Based on the Application, Mexico Buy Now Pay Later (BNPL) Market is segmented as; Retail Goods, Media & Entertainment, Healthcare & Wellness, Automotive, Home Improvement, Others.
By End User: Based on the End User, Mexico Buy Now Pay Later (BNPL) Market is segmented as; Generation X, Generation Z/Millennials, Baby Boomers.
By Region: This research also includes data for Eastern, Western, Southern and Northern Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.