In a strategic move to enhance financial inclusivity in Mexico, Amazon Mexico has joined forces with Kueski, a prominent fintech company, to introduce Buy Now Pay Later (BNPL) solutions and personal loans for its customers in the country. This collaboration marks Amazon's debut in the BNPL space within the Mexican market, providing new avenues for customers to access flexible payment options.
As part of the partnership, Amazon Mexico will roll out a bi-weekly installment payment option for customers, allowing them to utilize this feature across up to 12 purchases. Kueski, in turn, will be responsible for providing financing for these transactions and determining individual credit allowances for users, thereby extending financial accessibility to a broader consumer base.
Andrew Seiz, Head of Finance at Kueski, expressed enthusiasm about the collaboration, highlighting the significance of Amazon's stature in Mexico. He noted, "It’s an exciting milestone, given Amazon is such a significant merchant in the context of Mexico. With this agreement, people who may not have been able to access financing before can purchase products on Amazon."
To address concerns about the potential misuse of the company's BNPL product, Seiz emphasized the effectiveness of safeguards implemented by the fintech company, ensuring responsible lending practices and protecting consumers.
This partnership aligns with a larger trend in Mexico, where financial services startups are recognizing the country as a key market for expansion. With less than 50% of Mexico's population having a bank account, there is a growing demand for technologically enabled financial services to reach the underserved and make diverse finance options accessible to all.
Kueski, operational since 2012, has witnessed substantial growth, securing $202 million in a Series C funding round in late 2021. The fintech company introduced its BNPL services in 2021, which are now gaining traction through its integration with Amazon.
Mexico, emerging as a prominent fintech hub in Latin America, is positioned as a fertile ground for financial services innovation. While Brazil currently leads as the region's leading fintech hub, Mexico is rapidly gaining momentum. Seiz emphasized the robust outlook for Mexico from both a macroeconomic perspective and consumer demand for fintech products, affirming the significant opportunity for growth in the near to medium term.
As Amazon Mexico pioneers BNPL solutions in collaboration with Kueski, the partnership not only reflects the evolving landscape of financial services in Mexico but also underscores the strategic importance of the region for fintech companies looking to provide inclusive and innovative solutions to a diverse consumer base.
