Mexico’s Payment Infrastructure Undergoing Transformation Through BNPL Adoption

As digital payment solutions gain traction in Latin America, the Buy Now, Pay Later (BNPL) model is emerging as a critical component of financial infrastructure—particularly in Mexico. With 52% of Mexicans unbanked and 67% lacking credit cards, cash remains king for 79% of transactions.

Andrew Seiz, Senior Vice President of Strategic Finance at Kueski, explains that BNPL isn’t necessarily competing with traditional credit but rather displacing cash and formalizing consumption in a market where financial inclusion must precede innovation.

Building Parallel Financial Rails

The approach to BNPL in emerging markets like Mexico differs significantly from developed economies. Instead of focusing on optimizing checkout flexibility for existing credit holders, Mexican providers must serve ‘thin-file’ consumers who represent the norm rather than an exception.

Kueski addresses this by leveraging AI and proprietary machine learning models that evaluate hundreds of behavioral variables in seconds—essentially building parallel financial rails that expand formal participation. To date, they’ve issued approximately 40 million loans across Mexico.

Institutional Confidence Grows

Despite global interest rate concerns, the BNPL sector is proving resilient thanks to disciplined capital allocation and strong repeat usage. Institutional investors are increasingly recognizing that short-duration, data-driven consumer credit in underpenetrated markets offers a way to de-risk exposure compared to traditional investments.

“Capital markets are recognizing that these types of loans offer differentiated exposure,” Seiz noted, pointing out that granular portfolio data allows for dynamic repricing across economic cycles.

Looking Ahead

The focus remains on strengthening the core payment infrastructure rather than pursuing rapid expansion into other services. While Kueski’s app has seen nearly 1 million downloads monthly, their priority is enhancing security and earning trust at scale—building a responsible financial ecosystem for Mexico’s evolving digital economy.