Mexico’s BNPL Sector Poised for Growth: The Week in Retail

Palacio de Hierro reported revenues of MX$17.3 billion in the last quarter of the year. Meanwhile, Mexico’s Buy Now, Pay Later (BNPL) sector is projected to reach US$7.38 billion in 2024, with a 42.8% annual growth rate fueled by the expanding e-commerce landscape, even though 92% of people still use cash in the sector. 

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Palacio de Hierro Reports 7.9% Revenue Increase in 4Q23

Palacio de Hierro reported a 7.9% increase in consolidated revenues in the fourth quarter of 2023 compared to the same period in 2022, totaling MX$17.305 billion, attributing the growth to its "Extended Catalog" online sales channel and AI implementation. 

Mexico’s BNPL Sector to Surge 42.8% in 2024

Mexico's Buy Now, Pay Later (BNPL) sector is projected to surge, reaching US$7.38 billion in 2024, with a 42.8% annual growth rate, driven by increasing e-commerce and consumer demand for flexible payment options. Adoption rates soared by 31% in 2023, with forecasts indicating sustained growth of 30% over the next five years, particularly benefiting individuals without credit history.

Cash Still Dominates: 92% of Mexicans Use Cash in Retail

The XII Report on Payment Trends in Ibero-America by Minsait Payments highlights that 92% of Mexicans affirm their continuous use of cash, indicating a strong preference for traditional payment methods despite exponential growth in e-commerce during the COVID-19 pandemic. 

Grupo Bimbo Recognized by CDP for its Climate Efforts

Grupo Bimbo earned an "A" rating from the Carbon Disclosure Project (CDP) for its environmental efforts, making it the sole Mexican food company among the 346 companies recognized globally. Grupo Bimbo boasts the largest fleet of electric delivery vehicles in Mexico and Latin America and cultivates 170,000 hectares of wheat and corn through regenerative agriculture. 

Shein Eyes UK IPO Over US Amid Regulatory Concerns

Shein has postponed its Initial Public Offering (IPO) amid regulatory issues with the New York Stock Exchange and Chinese regulations, potentially leading to a listing in the United Kingdom instead of the United States. Recent developments hint at a potential decrease in valuation from its previously anticipated range of US$80 billion to US$90 billion, raising concerns about Shein's ties to China and prompting US politicians like Sen. Marco Rubio to call for closer scrutiny.