“El Buen Fin,” Mexico’s nationwide shopping event, kicks off in November. Since its inception in 2011, this event has built a strong reputation for offering a wide range of products paired with competitive promotions and discounts from participating merchants. These opportunities to save serve as a motivator for Mexican consumers, who seem to anticipate this event more and more each year.
Outside of promotions and discounts, this year, merchants have a new opportunity to attract customers and establish loyalty by offering alternative ways to pay at checkout, both in-store and online. According to the Mexican Online Sales Association (AMVO), 36% of consumers consider more forms of financing – like buy now, pay later (BNPL) – to be a motivator for purchase consideration during Buen Fin.
In its Purchase Expectations for El Buen Fin 2023 report, AMVO states that merchants have an opportunity to reinforce the use of alternatives to debit and credit cards and that card-free options may help increase the frequency in which consumers shop online. AMVO notes that these options are becoming more relevant compared to last year.
This finding supports the broader trend of BNPL adoption across Mexico and the benefits merchants are experiencing when they offer this payment option. In fact, more than 70% of our merchant partners at Kueski have said that they have attracted new customers by offering BNPL.
Benefits of Offering Flexibility
With Buen Fin being an annual highlight for merchants, offering flexible payment options at checkout can help them attract and retain new pools of customers – from the unbanked who don’t own credit cards to the middle and upper class who are looking to make aspirational purchases ahead of the holidays.
Unlike paying with a traditional credit card, BNPL helps merchants safeguard their customers by preventing fraud and chargebacks. And with the opportunity to pay over time without storing sensitive data online, consumers who are unbanked are able to make larger purchases while building their credit history at the same time. By offering this type of customer experience, merchants emerge as a partner in the financial journeys of Mexicans, helping them to create a foundation for a more successful financial future. This goes a long way when it comes to creating customer loyalty and trust.
BNPL isn’t just for the unbanked either. The fast, safe and convenient payment option is also attractive to members of the middle and upper class who don’t want to make larger purchases with credit cards due to stricter terms and higher interest rates. Having the ability to “buy now, pay later” serves as a driver for making those bigger purchases now, especially during a sales event like Buen Fin when products will be discounted. In fact, more than 60% of our users have a credit card but still prefer to use BNPL. That’s because it’s a new experience, an extension of credit, and a modern, user-friendly perk.
Taking Advantage of the Opportunity
AMVO is predicting that 94% of buyers will combine physical and digital channels when making a purchase during Buen Fin this year. Of those who are anticipated to shop during the event, 11% will be doing so for the first time. This presents the perfect opportunity for merchants to highlight a modern customer experience – both through promotions and offers, but also by offering new ways to pay.
Merchants who incorporate flexible payment options like BNPL at checkout online and in-store are likely to have a competitive advantage during this year’s sales event because Mexicans are growing more accustomed to having the freedom to choose. Offering that choice will not only aid in the success of Buen Fin, but it will also set merchants up for long-term success by drawing in repeat customers throughout the holiday season and beyond.
Offering alternative payment options like BNPL is the direction in which the market is heading. Flexible payment terms are becoming a necessity, and the merchants who get on board early are establishing greater credibility in the market, leading to increased trust by consumers. According to a study conducted by Kueski, more than 80% of their merchant partners say that they perceive their credibility with customers has increased by incorporating BNPL as a payment method.
Merchants have a unique opportunity with BNPL to connect the Mexican economy by providing flexibility and a new path toward building credit history for those who wouldn't otherwise have it, and Buen Fin is the perfect launch pad for merchants to get started. Just as the United States has seen a rise in the use of BNPL during its Black Friday event, we expect to see more consumers demanding flexibility beyond traditional credit cards during Buen Fin. BNPL is changing the way Mexican consumers pay, and merchants who get involved now will have more opportunities to succeed in the future.
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