Bow Now, Pay Later Adoption Surges 31% in Mexico in 2023

The adoption of Bow Now, Pay Later (BNPL) in Mexico saw a significant uptick of 31% throughout 2023, revealed a report by the credit management company MO. Forecasts by experts indicate a sustained annual growth rate of at least 30% over the next five years, driven by consumers' preference for convenient and accessible shopping experiences.

The surge in BNPL adoption aligns with the burgeoning presence of fintech firms in Mexico which have made credit more accessible even without prior credit history. The majority of users embracing BNPL fall within the 18 to 40 age bracket, appreciating the flexible payment options it offers across a broad spectrum of products and services.

In 2023, the retail industry in the region raked in US$117 million in revenue, with Mexico contributing US$66 million, marking an 86% growth compared to 2022. 

The digital transformation of e-commerce platforms has gained momentum in recent years, with 75% of Mexican businesses reporting increased monthly revenues following the adoption of digital payment solutions. Additionally, 72% noted an increase in customer spending on online purchases, according to MO. 

Embracing digital payments brings about a multitude of benefits, including enhanced customer experiences, heightened transaction security, and global reach, as emphasized by MO. By offering diverse payment options, businesses can broaden their market reach, appeal to customers worldwide and foster long-term customer loyalty. Streamlining digital payment processes not only enhances the overall buyer journey but also mitigates the risks associated with fraud while bolstering transaction security.