The Mexican arm of Amazon, Amazon Mexico, has partnered with Kueski to offer personal loans and Buy Now Pay Later (BNPL) solutions to its customers in the country. The partnership marks the first BNPL offering Amazon has provided to the Mexican market.
Per the deal, Amazon will initially offer payments in bi-weekly instalments, allowing customers to use this feature on up to 12 purchases.
Kueski will provide the financing for these purchases and be responsible for determining each user's credit allowances.
Andrew Seiz, Kueski Head of Finance, says: “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.”
So far, Seiz says that abuses of Kueski’s BNPL product have been controlled, thanks to the safeguards Kueski puts in place.
Mexico: LatAm’s burgeoning finserv startup market
Amazon’s partnership with Kueski forms part of a larger picture, one in which Mexico has emerged as a key market for financial services startups in LatAm.
Less than 50% of Mexico’s population has a bank account, so new technologically enabled financial services companies are stepping in to reach the underserved and make finance options available for all.
Kueski is one such business. In operation since 2012, the fintech has seen a marked rise in value in recent years, generating US$202m in a Series C funding round in late 2021.
In fact, it was in 2021 that Kueski first launched its BNPL services, a solution that is now starting to bear fruit via its integration with Amazon.
Kueski’s growth is a reflection of Mexico’s position as a leading fintech hub in LatAm and its promise for future growth.
Indeed, only Brazil outstrips Mexico as LatAm's leading fintech hub, but Mexico is very much on the rise.
Seiz adds: “The outlook in Mexico is very robust, from a macroeconomic perspective and consumer demand for our product.
“So in the near term 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.”
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