As a means to help finance purchases over a set period of time, buy now, pay later (BNPL) services have become quite popular — especially among the more financially fragile consumers.
According to a study by C+R Research, there are about a dozen BNPL platforms in the United States alone. Some platforms include Affirm, Klarna, PayPal Credit, Afterpay and Zip. Statista reports that older Gen Z and Millennials are more likely than other age groups to use these services to finance their purchases.
BNPL platforms are becoming so popular that one platform, Kueski, just announced the launch of the in-store version of KueskiPay in Mexico, which will become available to all Mexican consumers by the end of Q2 of 2024. Shoppers will have the ability to complete transactions through the Kueski mobile app, regardless of internet connection, in physical stores.
Offering Financing Options to a Cash Economy
This move by Kueski is a big deal for Mexico, where most people lack access to banking and reliable internet for in-person shopping. According to a Bank of Mexico study, 80% of retail transactions are still in cash. By addressing these challenges, Kueski’s solution will better connect millions of consumers with merchants.
“Based on what we have heard, consumers here in Mexico prefer BNPL because some people don’t have access to credit,” says Kueski CTO Jamie Romero. “They also feel that BNPL is better to implement rather than credit cards to help organize costs.”
On top of this, there is also a lack of security surrounding credit cards in Mexico and they can be stolen quite easily, according to Romero. These issues with credit are what’s causing shoppers to mainly purchase with cash.
“BNPL is the only avenue in Mexico that’s building a way for people to move away from cash and have a dedicated account, so it’s very friendly for purchases,” adds Romero. “In most cases, there’s no other real alternative.”
How Kueski Pay Works
The in-store version of KueskiPay will work similarly to the online version, save a few enhancements. Each customer has a service limit assigned to their account. When they go to a store to make a purchase, the transaction can be done through their mobile phone.
“We currently have thousands of merchants already signed up for our service, and every merchant can have several hundreds of stores across the country. We are already available in a bunch of them and will be increasing the amount in the following months,” explains Romero.
Kueski also announced earlier this year that it is now available on Amazon Mexico and is a payment option for some of the world’s largest brands, including Estée Lauder, MAC, Clinique, Adidas and thousands more, as well as brands from small and medium-sized businesses.
Kueski Pay a National Success
Romero notes that the online version of Kueski has been very successful, which ultimately led the team to developing the in-store version.
“We have grown so much since our launch, especially during the pandemic, which experienced huge transactionality and is still growing very fast,” he says. “We’ve been incorporating thousands of merchants and just recently launched on Amazon, so we’re definitely by far the biggest BNPL solution in Mexico.”
Not only did Kueski’s success drive the team to launch in-stores, but they also listened to their customers who said they would love to transact in store.
“Those conversations with customers really helped,” notes Romero. “A lot of our merchants have also experienced success with our products and pushed us to have it in stores as well. So we’ve been hearing from both sides who want us in stores.”
The Future of Buy Now, Pay Later
Romero suggests that we will continue to see the interest and adoption of BNPL solutions.
“I see BNPL continuing to expand to other categories beyond retail, such as medical services or home improvement,” he predicts. “These solutions will be an integral and preferred payment method for users, especially with how easy and secure they are compared to other payment methods.”
Other BNPL providers such as Klarna are also offering in-store solutions for customers. The more popular these services get, the more widely available they will be for use. Additionally, CB Insights also predicts BNPL companies will implement debit cards, high yield savings accounts and loyalty programs as a way to innovate and attract more customers.
