Latin America Buy Now Pay Later Business Report 2026: Market to Grow by 24.8% to Reach $18.5 Billion this Year – Investment Opportunities to 2031 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Latin America Buy Now Pay Later Business and Investment Opportunities Databook – 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics – Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.

The BNPL payment market in Latin America is expected to grow by 24.8% on annual basis to reach US$18.5 billion in 2026.

The buy now pay later market in the country has experienced robust growth during 2022-2025, achieving a CAGR of 32.8%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 18.3% from 2026-2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of USD 14.9 billion to approximately USD 43.0 billion.

Competition is expected to centre on underwriting capabilities, multi-channel merchant integration and regulatory compliance. Platform-led BNPL and bank-led instalment features will converge, placing pressure on standalone BNPL firms. Over the next 2-4 years, the market is likely to consolidate around ecosystem players with strong consumer data and cross-vertical merchant relationships.

BNPL in Latin America is shaped by a fragmented competitive landscape led by local fintechs, e-commerce ecosystems, and retailer finance arms. Brazil and Mexico anchor regional activity, where instalment payments are already embedded in traditional “parcelado” and “meses sin intereses”, creating a foundation for digital BNPL adoption.

Key Players and New Entrants

• Mercado Libre’s credit arm remains influential due to its multi-country operations. Kueski Pay has expanded its merchant network in Mexico and is moving into in-store channels. In Colombia, Addi strengthened its position following new capital injections. Brazil has seen activity from wallet-led ecosystems, including Nubank and large retailers deploying short-term digital credit.
• Banks in Mexico and Brazil have begun introducing card-linked BNPL features, intensifying competition. A small number of new entrants have emerged in vertical segments such as healthcare and education financing, often partnering with payment processors.

BNPL integrates with instant-payment rails and card-installment cultures (Brazil, Mexico)

• In Brazil, BNPL models are increasingly embedded into existing payment habits dominated by interest-free installments and Pix. Providers such as Mercado Pago, Nubank, and large retailers are now offering pay-later options that mirror the traditional “parcelado” structure but operate through digital checkout. Mexico is seeing a similar movement with BNPL services extending into the widely used meses sin intereses installment culture, often integrated into merchant checkout or wallet environments.
• Consumers in Brazil prefer predictable installment plans, and Pix has widened access to digital payments. In Mexico, merchants continue to promote installment schemes to support higher-ticket purchases, and fintechs such as Kueski Pay align their BNPL model with existing consumer behaviour. Fintechs and large merchants are responding to competitive pressure from banks that have launched card-linked installment features.
• BNPL is likely to resemble hybrid models that combine instant payments with short-term credit. Merchant adoption will expand across offline channels, especially in electronics, appliances and travel. Provider margins may come under pressure as consumers gravitate toward lower-cost installment models that leverage instant-payment infrastructure.

E-commerce platforms deepen embedded credit models (Brazil, Mexico, Argentina)

• Large platforms are strengthening internal credit ecosystems to boost transaction volumes. Mercado Libre’s Mercado Credito continues to expand instalment credit across Brazil, Mexico and Argentina, embedding BNPL into wallet and platform checkout flows. In Mexico, Kueski Pay has increased acceptance across fashion, travel and general retail merchants, while in Argentina, platform-based BNPL is one of the few fast-growing digital credit categories amid high inflation.
• Platforms have access to behavioural data and merchant networks, enabling risk models that support short-tenure credit. E-commerce players aim to reduce their reliance on external payment networks by boosting their proprietary credit. BNPL supports higher purchase conversion during periods of constrained household budgets.
• Embedded BNPL is likely to scale within loyalty ecosystems, including subscription programmes, wallets and co-branded cards. Platform-issued BNPL may begin competing directly with bank credit cards, particularly for mid-ticket purchases. Providers with multi-country operations, such as Mercado Libre, will benefit from cross-market credit data aggregation.

BNPL expands beyond e-commerce into in-store and omnichannel financing (Mexico, Colombia, Chile)

• BNPL is transitioning into physical retail. Kueski Pay in Mexico expanded QR-based in-store payments, allowing consumers to use BNPL at pharmacies, electronics stores and convenience formats. In Colombia, Addi increased merchant adoption across furniture, fashion and homeware and secured new funding to broaden merchant partnerships. Chilean retailers continue to expand instalment-based credit across wallet and app environments, integrating BNPL-style short-term financing at checkout.
• Retailers seek flexible credit solutions that align with consumer demand for predictable payments without the revolving credit card risk. Fintechs are targeting offline merchants to diversify revenue and reduce dependency on digital-only traffic. QR-payment infrastructure and wallet penetration in Mexico and Colombia make in-store BNPL deployment easier.
• BNPL adoption in verticals such as healthcare, education, home improvement, and mobility is expected to grow. More banks and retail finance arms may partner with BNPL firms to manage risk, compliance, and collections. Omnichannel BNPL will become a standard payment method for mid-value transactions, especially in markets with lower credit card penetration.

Governments strengthen oversight of digital credit and consumer protection (Brazil, Colombia, regional spill-over)

• Regulators in Brazil and Colombia have been updating digital credit frameworks, impacting BNPL providers. Brazil continues to refine supervision of fintech lenders and payment institutions, with rules governing licensing, capital, and transparency. Colombia has expanded the scope of its regulatory sandbox for digital credit models and is moving toward stronger consumer-protection standards for instalment services.
• BNPL is increasingly used for essential purchases, raising concerns about debt accumulation and affordability. Regulators aim to align BNPL with existing consumer credit standards, especially regarding disclosures and credit assessments. The growth of non-bank credit providers has accelerated the need for consistent rules across lending categories.
• BNPL providers may face higher compliance and underwriting costs. Partnerships with licensed financial institutions, banks, or regulated fintech lenders are likely to increase. Regulation may standardize product structures, reducing variation across providers and bringing BNPL closer to traditional instalment lending.

Recent Launches, Mergers, and Acquisitions

• Recent activity has focused on strategic partnerships rather than large-scale M&A. Kueski expanded in-store acceptance through partnerships with pharmacy and electronics chains in Mexico. Addi announced new international funding to accelerate merchant acquisition in Colombia.
• Brazilian retailers have launched proprietary instalment products inside loyalty ecosystems. Regional acquirers and payment processors have integrated BNPL options within checkout, enabling small merchants to adopt pay-later without building risk models.

A bundled offering, combining the following 6 reports, covering 300+ tables and 450+ figures for the Buy Now Pay Later Market:

• Latin America Buy Now Pay Later Market Business and Investment Opportunities Databook
• Argentina Buy Now Pay Later Market Business and Investment Opportunities Databook
• Brazil Buy Now Pay Later Market Business and Investment Opportunities Databook
• Chile Buy Now Pay Later Market Business and Investment Opportunities Databook
• Colombia Buy Now Pay Later Market Business and Investment Opportunities Databook
• Mexico Buy Now Pay Later Market Business and Investment Opportunities Databook

Key Attributes:

Companies Featured

• Uala
• Mercado Pago
• Wibond
• WIPEI
• MODO
• PagSeguro
• Addi
• RecargaPay
• Tino
• Cleo
• MACH
• Banco Falabella
• EBANX
• RappiPay
• Klarna
• Riverty
• Billink
• Confidis
• Oney

For more information about this report visit https://www.researchandmarkets.com/r/oxlyb1

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