Latin America Buy Now Pay Later Business and Investment Opportunities Databook - 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2026 Update

Key Trends and Drivers

BNPL integrates with instant-payment rails and card-installment cultures (Brazil, Mexico)

• In Brazil, BNPL models are increasingly embedded into existing payment habits dominated by interest-free installments and Pix. Providers such as Mercado Pago, Nubank, and large retailers are now offering pay-later options that mirror the traditional “parcelado” structure but operate through digital checkout. Mexico is seeing a similar movement with BNPL services extending into the widely used meses sin intereses installment culture, often integrated into merchant checkout or wallet environments.
• Consumers in Brazil prefer predictable installment plans, and Pix has widened access to digital payments. In Mexico, merchants continue to promote installment schemes to support higher-ticket purchases, and fintechs such as Kueski Pay align their BNPL model with existing consumer behaviour. Fintechs and large merchants are responding to competitive pressure from banks that have launched card-linked installment features.
• BNPL is likely to resemble hybrid models that combine instant payments with short-term credit. Merchant adoption will expand across offline channels, especially in electronics, appliances and travel. Provider margins may come under pressure as consumers gravitate toward lower-cost installment models that leverage instant-payment infrastructure.

E-commerce platforms deepen embedded credit models (Brazil, Mexico, Argentina)

• Large platforms are strengthening internal credit ecosystems to boost transaction volumes. Mercado Libre’s Mercado Crédito continues to expand instalment credit across Brazil, Mexico and Argentina, embedding BNPL into wallet and platform checkout flows. In Mexico, Kueski Pay has increased acceptance across fashion, travel and general retail merchants, while in Argentina, platform-based BNPL is one of the few fast-growing digital credit categories amid high inflation.
• Platforms have access to behavioural data and merchant networks, enabling risk models that support short-tenure credit. E-commerce players aim to reduce their reliance on external payment networks by boosting their proprietary credit. BNPL supports higher purchase conversion during periods of constrained household budgets.
• Embedded BNPL is likely to scale within loyalty ecosystems, including subscription programmes, wallets and co-branded cards. Platform-issued BNPL may begin competing directly with bank credit cards, particularly for mid-ticket purchases. Providers with multi-country operations, such as Mercado Libre, will benefit from cross-market credit data aggregation.

BNPL expands beyond e-commerce into in-store and omnichannel financing (Mexico, Colombia, Chile)

• BNPL is transitioning into physical retail. Kueski Pay in Mexico expanded QR-based in-store payments, allowing consumers to use BNPL at pharmacies, electronics stores and convenience formats. In Colombia, Addi increased merchant adoption across furniture, fashion and homeware and secured new funding to broaden merchant partnerships. Chilean retailers continue to expand instalment-based credit across wallet and app environments, integrating BNPL-style short-term financing at checkout.
• Retailers seek flexible credit solutions that align with consumer demand for predictable payments without the revolving credit card risk. Fintechs are targeting offline merchants to diversify revenue and reduce dependency on digital-only traffic. QR-payment infrastructure and wallet penetration in Mexico and Colombia make in-store BNPL deployment easier.
• BNPL adoption in verticals such as healthcare, education, home improvement, and mobility is expected to grow. More banks and retail finance arms may partner with BNPL firms to manage risk, compliance, and collections. Omnichannel BNPL will become a standard payment method for mid-value transactions, especially in markets with lower credit card penetration.

Governments strengthen oversight of digital credit and consumer protection (Brazil, Colombia, regional spill-over)

• Regulators in Brazil and Colombia have been updating digital credit frameworks, impacting BNPL providers. Brazil continues to refine supervision of fintech lenders and payment institutions, with rules governing licensing, capital, and transparency. Colombia has expanded the scope of its regulatory sandbox for digital credit models and is moving toward stronger consumer-protection standards for instalment services.
• BNPL is increasingly used for essential purchases, raising concerns about debt accumulation and affordability. Regulators aim to align BNPL with existing consumer credit standards, especially regarding disclosures and credit assessments. The growth of non-bank credit providers has accelerated the need for consistent rules across lending categories.
• BNPL providers may face higher compliance and underwriting costs. Partnerships with licensed financial institutions, banks, or regulated fintech lenders are likely to increase. Regulation may standardize product structures, reducing variation across providers and bringing BNPL closer to traditional instalment lending.

Competitive Landscape

Current State of the Market

• BNPL in Latin America is shaped by a fragmented competitive landscape led by local fintechs, e-commerce ecosystems, and retailer finance arms. Brazil and Mexico anchor regional activity, where instalment payments are already embedded in traditional “parcelado” and “meses sin intereses”, creating a foundation for digital BNPL adoption.
• In Brazil, players such as Mercado Pago, Nubank, and large retailers integrate BNPL alongside Pix-driven checkouts. Mexico’s ecosystem is centred on Kueski Pay, which operates across fashion, electronics, and pharmacy retail. Colombia and Chile show rising merchant adoption through players like Addi and retailer-linked credit arms. Competitive intensity is increasing as banks introduce instalment features to defend card instalment volumes.

Key Players and New Entrants

• Mercado Libre’s credit arm remains influential due to its multi-country operations. Kueski Pay has expanded its merchant network in Mexico and is moving into in-store channels. In Colombia, Addi strengthened its position following new capital injections. Brazil has seen activity from wallet-led ecosystems, including Nubank and large retailers deploying short-term digital credit.
• Banks in Mexico and Brazil have begun introducing card-linked BNPL features, intensifying competition. A small number of new entrants have emerged in vertical segments such as healthcare and education financing, often partnering with payment processors.

Recent Launches, Mergers, and Acquisitions

• Recent activity has focused on strategic partnerships rather than large-scale M&A. Kueski expanded in-store acceptance through partnerships with pharmacy and electronics chains in Mexico. Addi announced new international funding to accelerate merchant acquisition in Colombia.
• Brazilian retailers have launched proprietary instalment products inside loyalty ecosystems. Regional acquirers and payment processors have integrated BNPL options within checkout, enabling small merchants to adopt pay-later without building risk models.

This is a bundled offering, combining the following 6 reports, covering 300+ tables and 450+ figures for the Buy Now Pay Later Market:

• Latin America Buy Now Pay Later Market Business and Investment Opportunities Databook
• Argentina Buy Now Pay Later Market Business and Investment Opportunities Databook
• Brazil Buy Now Pay Later Market Business and Investment Opportunities Databook
• Chile Buy Now Pay Later Market Business and Investment Opportunities Databook
• Colombia Buy Now Pay Later Market Business and Investment Opportunities Databook
• Mexico Buy Now Pay Later Market Business and Investment Opportunities Databook

Report Scope

Latin America Retail Industry & Ecommerce Market Size and Forecast

• Retail Industry - Spend Value Trend Analysis
• Buy Now Pay Later Share of Retail Industry
• Ecommerce - Spend Value Trend Analysis
• Buy Now Pay Later Share of Ecommerce

Latin America Buy Now Pay Later Market Size and Industry Attractiveness

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
• Market Share Analysis by Key Players

Latin America Buy Now Pay Later Revenue Analysis

• 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

Latin America Buy Now Pay Later Operational KPIs

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

Latin America Buy Now Pay Later Spend Analysis by Business Model

• Two-Party Business Model
• Third-Party Business Model

Latin America Buy Now Pay Later Spend Analysis by Purpose

• Convenience
• Credit

Latin America Buy Now Pay Later Spend Analysis by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Latin America Buy Now Pay Later Spend Analysis by Distribution Model

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Latin America Buy Now Pay Later Spend Analysis by Channel

• Online Channel
• POS Channel

Latin America Buy Now Pay Later By End-Use Sector: Market Size and Forecast

• Retail Shopping
• Home Improvement
• Travel
• Media and Entertainment
• Services
• Automotive
• Health Care and Wellness
• Others

Latin America Buy Now Pay Later By Retail Product Category: Market Size and Forecast

• Apparel, Footwear & Accessories
• Consumer Electronics
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Entertainment & Gaming
• Other

Latin America Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Spend Share by Age Group
• Spend Share by Default Rate by Age Group
• Spend Share by Income
• Gross Merchandise Value Share by Gender
• Adoption Rationale
• Spend by Monthly Expense Segments
• Average Number of Transactions per User Annually
• BNPL Users as a Percentage of Total Adult Population

Reasons to Buy

• Strategic and Innovation Insights: Gain clarity on the future direction of Latin America's Buy Now Pay Later market by analysing strategic initiatives, business model evolution, and innovation-led approaches adopted by key BNPL providers to strengthen market positioning.
• Comprehensive Understanding of BNPL Market Dynamics in Latin America: Assess market size, growth outlook, and structural shifts across retail and e-commerce, supported by detailed segmentation by channel, business model, distribution model, merchant ecosystem, end-use sector, and consumer demographics, underpinned by 90+ KPIs.
• Value and Volume-Based KPIs for Market Accuracy: Leverage a robust set of value and volume KPIs, including GMV, average transaction value, transaction volume, active users, revenue, and bad debt, to develop a precise understanding of BNPL adoption, usage intensity, and market maturity.
• Competitive Landscape Assessment: Obtain a clear snapshot of the BNPL competitive landscape in Latin America, including market share analysis of leading providers, enabling informed benchmarking and evaluation of market concentration and competitive intensity.
• Actionable Inputs for Market Entry and Expansion Strategies: Identify high-growth categories, priority end-use sectors, and distribution channels to fine-tune go-to-market and partnership strategies, while assessing key trends, regulatory considerations, and risk factors shaping the BNPL ecosystem.
• In-Depth Consumer Behaviour Analysis: Enhance ROI by understanding evolving consumer attitudes and spending behaviour, with insights into BNPL adoption drivers, usage frequency, income and age-based usage patterns, gender splits, and monthly expense segmentation.