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Amazon.com Inc. is offering buy now, pay later loans in Mexico through a partnership with Kueski Pay, a BNPL program in Mexico.
Shoppers on Amazon Mexico can use Kueski Pay to pay for their purchases in four or 12 bi-weekly installments through a linked bank account or debit card, or with cash at affiliated networks.
The addition of Kueski Pay is expected to broaden Amazon’s reach in Mexico, as less than one third of the adult population in the country has a credit card and most transactions are still made in cash, according to Amazon. In addition, more than 60% of adults in Mexico are unbanked.
“Customers are increasingly looking for flexible payment options to help them meet their shopping needs,” Karen Pepper, digital payments leader for Amazon Mexico says in a statement. “Pago en Quincenas with Kueski Pay is Amazon’s latest initiative to provide customers in Mexico with access to affordable payment methods.”
Consumers in Mexico have borrowed nearly $15 million through Kueski Pay. In addition, while more than 60% of Kueski Pay’s customers say their preference is to pay for purchases in installments, even though they have a credit card, the company says. Kueski Pay estimates that one in four of Mexico’s more popular merchants offer its BNPL payment option.
In related Amazon news, Amazon Lending, the e-commerce giant’s commercial-lending unit, has partnered with e-commerce financing and financial services provider SellersFi to provide Amazon sellers credit lines of up to $10 million.
Access to capital is a key component of building a successful e-commerce business, as 32% of online startups fail because they run out of money, according to Marketing Signals L:td., a provider of digital-marketing solutions.
Weston, Fla.-based SellersFi, which launched in 2017, offers working capital, prepaid debit cards, and digital wallets. The company plans to add such financial services as insurance, business credit and debit, and checking accounts.
