Sunday, June 23, 2024

Amazon Mexico to offer buy now, pay later option

Internet retail giant Amazon will offer biweekly payment options in Mexico for the first time, through a partnership with Mexican fintech firm Kueski. 

The collaboration aims to offer users without a credit card the option to purchase items in up to twelve biweekly installments with “buy now, pay later options” and personal loans, the startup’s Chief Financial Officer Andrew Seiz told Bloomberg in an interview.  

Kueski will now offer credit to the millions of Mexican consumers outside of the traditional banking system. (Omar Martínez/Cuartoscuro)

“It’s an exciting milestone, given Amazon is such a significant merchant in the context of Mexico,” Seiz said. “With this agreement, people who may not have been able to access financing before will be able to purchase products on Amazon.”

Shoppers will now be able to select options of between two and 12 payments on their Amazon purchases. The new payment method will be available for every product in the e-commerce platform except for gift cards, e-books, Kindle, Prime Video and Audible products.

Mexico has become a significant market for fintech startups, as much of the country continues to remain outside the traditional banking system, and the majority of transactions are carried out in cash.

“Our agreement with Amazon demonstrates Mexicans’ need for more flexible, secure, and inclusive payment alternatives. Kueski Pay allows merchants to create more innovative shopping experiences and help Mexican consumers,” Kueski Vice President Lisset May said.

Amazon warehouse
Shoppers can pay for their goods in up to 12 installments. (Amazon México/X)

Kueski has been in operation for 12 years and launched its BNPL area Kueski Pay three years ago. In that time, it has grown to employ 620 employees, and has approved almost 15 million loans.

In December 2021, the fintech announced it had raised US $202 million in a Series C funding round led by StepStone Group Inc and Victory Park Capital. 

“The outlook in Mexico is very robust, from a macroeconomic perspective and consumer demand for our product.” Seiz said. “So, in the near to medium term we believe Mexico offers a pretty significant opportunity for us and we will as a result continue to focus on Mexico for now.”

While Kueski Pay is now available on Amazon Mexico, the company says it is in a preliminary phase before being rolled out to all users in April.

With reports from Xataka, Fashion Network and Yahoo Finance.


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