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Business Standard
02-05-2025
- Business
- Business Standard
Alarming! Gen Z drives credit boom: Cards, loans being taken as early as 22
The average age at which Indians avail their first credit product has dropped by 21 years, according to a new consumer insights study by Paisabazaar, signalling a sharp generational shift in financial behavior. With easier access to loans and a rise in digital financial literacy, today's consumers are starting their credit journeys in their mid-20s—compared to their parents, who typically began in their late 40s. Paisabazaar's analysis of credit patterns from over 10 million consumers shows that individuals born in the 1960s took their first credit product, usually a home loan, at an average age of 47, while those born in the 1990s started their credit journeys as early as 25–28, often with credit cards or personal loans. "Today's young consumers are more aware, aspirational, and digitally savvy," said Radhika Binani, Chief Product Officer, Paisabazaar. "They are not only accessing credit earlier but also using it more confidently and diversely—whether to meet life goals or lifestyle and aspirational needs," she said. But what is alarming is that Gen Z is starting their credit journeys earlier than any previous generation, often as young as 22. Being highly digital-native, this segment is more comfortable using online financial tools and platforms. Their first experience with credit typically comes through small-ticket loans or Buy Now Pay Later (BNPL) products, which are easily accessible, app-based, and tailored to lifestyle-driven spending habits. From Age 47 to 25: A 21-Year Shift Across Generations Consumers born in the 1960s took their first credit product—typically a home loan—at an average age of 47. Those born in the 1990s entered the credit ecosystem as early as 25–28, often through credit cards, personal loans, or consumer durable loans. 1960s-born: First credit product: Home Loan Average age: 47 1970s-born: First credit product: Auto Loan Average age: 39 1980s-born: First credit product: Auto Loan Average age: 31 1990s-born: Entry products were diverse: Credit Cards, Personal Loans, Consumer Durable Loans, Auto Loans Average age: 25–26 Home Loans Are Being Taken Nearly a Decade Earlier 1970s-born: First Home Loan at 41 1980s-born: First Home Loan at 34 1990s-born: First Home Loan at 28 Business Loans Reflect Rising Entrepreneurial Ambition 1970s-born: First Business Loan at 42 1980s-born: First Business Loan at 34 1990s-born: First Business Loan at 27 Gold Loans Still a Safety Net, But Accessed Much Earlier 1960s-born: First Gold Loan at 52 1990s-born: First Gold Loan at 27 Post-2000s Generation: Even Earlier Credit Adoption Begins First credit experience starts at age 22 Common entry products: Small-ticket loans, Buy Now Pay Later (BNPL) schemes Gold loans, meanwhile, continue to serve as a financial safety net across generations, though the age of first usage has steadily dropped—from 52 for 60s-born to 27 for those born in the 90s. Paisabazaar's findings also show that consumers born post-2000 are continuing this trend, with early signs of even earlier credit adoption—often starting around the age of 22, primarily via small-ticket loans and Buy Now Pay Later (BNPL) products.
Yahoo
06-03-2025
- Business
- Yahoo
Mexico Buy Now Pay Later Business Report 2025-2030: Accelerated Expansion, Competitive Landscape, Regulatory Development, Integration in Physical Retail, Strategic Partnerships Enhancing Reach
Mexican Buy Now Pay Later Market Dublin, March 06, 2025 (GLOBE NEWSWIRE) -- The "Mexico Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update" report has been added to BNPL payment market in Mexico is expected to grow by 33.5% on annual basis to reach US$6.09 billion in 2025. The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 54.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 24.9% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 4.56 billion to approximately USD 18.51 report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Mexico, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics. The BNPL market in Mexico is evolving rapidly, driven by increasing consumer demand for flexible credit solutions and digital commerce expansion. The sector's accelerated growth, fueled by financial inclusion efforts and changing consumer preferences, is projected to maintain strong momentum, reaching billions in transaction volume over the next few years. The expansion of BNPL into physical retail further broadens its accessibility, allowing consumers who primarily shop in-store to benefit from installment-based purchasing, thereby strengthening the transition from cash to digital partnerships between BNPL providers and established brands amplify adoption by embedding BNPL services within familiar consumer ecosystems. These collaborations help fintech companies scale faster and provide merchants with alternative financing tools to boost sales. Over the next few years, BNPL is expected to become a mainstream payment method in Mexico, reshaping the financial landscape by offering more accessible credit solutions and driving economic participation across diverse consumer segments. Competitive Landscape and Regulatory Developments in Mexico's Buy Now, Pay Later (BNPL) MarketThe BNPL market in Mexico is expanding rapidly, driven by increasing digital adoption and demand for alternative credit solutions. Established players such as Kueski and MercadoLibre are strengthening their market positions, while new entrants and partnerships, such as the Shein-Stori collaboration, are further intensifying competition. Recent product launches, including Kueski's in-store payment options and Shein's co-branded credit card, indicate a shift toward more integrated financial solutions catering to online and offline competitive landscape is expected to become more dynamic, with players differentiating through technology-driven innovations and strategic alliances. Regulatory developments, including the push for modernized fintech laws and digital financial transaction frameworks, will be crucial in shaping market expansion. BNPL providers must balance compliance with rapid growth while addressing evolving consumer expectations, positioning Mexico as one of Latin America's key emerging BNPL State of the BNPL Market The BNPL market in Mexico is expanding rapidly as consumers seek more flexible payment options to manage their purchases. The growth of e-commerce has played a significant role in this trend, as online shoppers increasingly prefer installment-based payment solutions over traditional credit cards. In 2023, BNPL adoption surged by 31%, reflecting the increasing accessibility of credit to a broader consumer base. This expansion is driven by the growing demand for alternative credit solutions, particularly among individuals who lack access to traditional banking services. BNPL providers are leveraging digital platforms to offer quick and transparent financing options, making it easier for consumers to make larger purchases. As this trend continues, BNPL is expected to play a key role in reshaping the financial ecosystem in Mexico. Mexico's BNPL market is poised for significant expansion over the next few years, with increased competition among existing players and new entrants. As providers look to differentiate themselves, strategic partnerships and technological advancements will become key growth drivers. With more companies investing in BNPL solutions, the industry will likely see further integration across online and offline retail environments. Innovations in digital payments and credit assessment models will enhance accessibility, attracting a broader consumer base. As the market matures, regulatory developments will also play a crucial role in shaping its trajectory, ensuring sustainable growth while addressing potential risks associated with alternative credit solutions. Key Players and New Entrants Kueski: As a leading BNPL provider in Mexico, Kueski has expanded its services to include in-store mobile payments using QR codes, enhancing consumers' accessibility. MercadoLibre: Through its fintech arm, Mercado Pago, MercadoLibre offers BNPL options and has applied for a banking license to further expand its financial services in Mexico. Shein and Stori Partnership: In October 2024, fashion retailer Shein partnered with Mexican fintech Stori to launch a co-branded credit card to attract more consumers to BNPL services. Recent Launches, Mergers, and Acquisitions Recent developments in Mexico's BNPL market highlight a strategic push toward expanding service accessibility. Kueski's introduction of an in-store payment option using QR codes represents a shift toward omnichannel BNPL adoption, allowing consumers to use installment-based payments in physical retail settings. This move enhances BNPL's reach beyond e-commerce, catering to a wider audience still prefers in-person shopping experiences. Similarly, the Shein-Stori partnership has resulted in the launch of a co-branded credit card, signaling growing collaboration between fintechs and retailers. This initiative broadens BNPL accessibility, attracting a diverse customer base by integrating installment financing directly into Shein's ecosystem. These recent launches reflect the increasing competition and innovation in Mexico's BNPL sector, which is expected to continue evolving in response to consumer demand. Accelerated BNPL Market Expansion The BNPL market in Mexico is expanding rapidly, driven by increased accessibility to credit and changing consumer preferences. In 2023, the sector grew by 31%, reflecting a shift toward alternative financing solutions catering to a broader range of consumers. This growth is closely tied to the rise of digital commerce, where flexible payment options have become a critical factor in purchase decisions. Several factors fuel this expansion, including the boom in e-commerce, which has created greater demand for installment-based payment options. Financial inclusion initiatives have also played a crucial role, allowing individuals without traditional banking relationships to access credit through BNPL services. Additionally, consumers increasingly opt for BNPL over credit cards due to its transparent fee structures and ease of use, further driving adoption. Integration of BNPL in Physical Retail The expansion of BNPL into physical retail spaces marks a significant shift in the Mexican payments landscape. While BNPL has traditionally been associated with online shopping, companies such as Kueski are now introducing in-store payment options using QR codes. This development allows consumers to access installment-based payments at brick-and-mortar stores, making BNPL a more versatile and widely accepted payment method. One key driver of this trend is Mexican consumers' enduring preference for in-person shopping. Despite the growth of e-commerce, a large segment of the population still relies on cash transactions for retail purchases. By integrating BNPL into physical stores, providers can bridge the gap between digital credit solutions and traditional shopping habits, encouraging greater adoption of digital payment methods. Over the next few years, integrating BNPL in brick-and-mortar stores is expected to accelerate the shift toward digital transactions. As consumers become more comfortable using BNPL in different retail environments, the financial ecosystem could become more inclusive, offering more accessible credit options. This shift is also likely to drive increased consumer spending, benefiting retailers and BNPL providers as adoption grows. Strategic Partnerships Enhancing BNPL Reach Strategic partnerships are crucial in expanding BNPL adoption in Mexico, enabling providers to reach new customer segments and enhance their service offerings. Collaborations such as the Shein-Stori co-branded credit card highlight how fintech companies and retailers work together to integrate BNPL into existing financial ecosystems. These alliances not only increase accessibility to BNPL services but also create more tailored financing options for consumers. The primary driver of this trend is partnerships' ability to accelerate market penetration and diversification. By aligning with established companies, BNPL providers can tap into existing customer bases and leverage brand trust to encourage adoption. This approach reduces acquisition costs and enhances scalability, making BNPL a competitive alternative to traditional credit products. Over the next few years, strategic alliances are expected to further solidify BNPL as a mainstream payment method in Mexico. These collaborations will drive innovation in financing solutions, increasing convenience for consumers while providing merchants with new tools to boost sales. As more retailers, fintechs, and financial institutions enter the BNPL space through partnerships, the competitive landscape will likely become more dynamic and consumer-focused. Key Attributes: Report Attribute Details No. of Pages 88 Forecast Period 2025 - 2030 Estimated Market Value (USD) in 2025 $6.09 Billion Forecasted Market Value (USD) by 2030 $18.51 Billion Compound Annual Growth Rate 24.9% Regions Covered Mexico Companies Featured Klarna Atome Hapi Mercado Pago Oxxo Pay PagaTodo For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Mexican Buy Now Pay Later Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Canada Buy Now Pay Later Business Report 2025-2030: Afterpay, Sezzle, Klarna, Affirm, and PayBright are Actively Shaping the Competitive Landscape of the Burgeoning $7.5 Billion Industry
Canadian Buy Now Pay Later Market Dublin, Feb. 17, 2025 (GLOBE NEWSWIRE) -- The "Canada Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update" report has been added to BNPL payment market in Canada is expected to grow by 12.0% on annual basis to reach US$7.50 billion in 2025. The BNPL market experienced robust growth during 2021-2024, achieving a CAGR of 19.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.6% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 6.69 billion to approximately USD 11.32 billion. Canada's BNPL sector is evolving rapidly, driven by growing adoption across diverse sectors, the emergence of domestic players, and increasing regulatory oversight. The industry is expected to expand significantly over the next 2-4 years, with heightened competition, innovation, and regulatory compliance shaping the market's trajectory. Senior executives should closely monitor regulatory developments and strategic partnerships to leverage opportunities and mitigate risks in this dynamic landscape. This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Canada, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics. Competitive Landscape and Regulatory Developments in Canada's Buy Now, Pay Later (BNPL) MarketThe Canadian BNPL market is poised for sustained growth, fueled by increasing consumer demand for flexible payment options and the rapid expansion of e-commerce. Key players such as Afterpay, Sezzle, Klarna, Affirm, and PayBright are actively shaping the competitive landscape, leveraging strategic partnerships and technological innovations to strengthen their positions. This growing ecosystem highlights the sector's potential to redefine payment preferences across Canada's retail and non-retail the next 2-4 years, the competitive dynamics in the Canadian BNPL market will likely be marked by increased consolidation, technological advancements, and sectoral diversification. Larger providers are expected to acquire smaller players to achieve economies of scale and broaden their service offerings. Additionally, BNPL solutions are projected to expand into non-traditional sectors such as healthcare, education, and home improvement, further embedding themselves into consumer lifestyles. As the market matures, regulatory scrutiny from organizations such as the Financial Consumer Agency of Canada and advocacy groups will intensify, ensuring consumer protection and transparency in BNPL agreements, ultimately fostering a more sustainable and trust-driven State of the BNPL Market and Key Players The BNPL sector in Canada has experienced significant growth, driven by increased consumer demand for flexible payment options and the expansion of e-commerce. Afterpay: An Australian-based BNPL provider, Afterpay has established a strong presence in the Canadian market, partnering with various retailers to offer installment payment options. Sezzle: A US-based firm, Sezzle has gained traction in Canada by collaborating with merchants to provide BNPL services, appealing particularly to younger consumers. Klarna: Originally from Sweden, Klarna has expanded into Canada. It offers flexible payment solutions and recently integrated with Apple Pay to enhance user convenience. Affirm: A US-based BNPL provider, Affirm has entered the Canadian market, partnering with merchants to offer consumers installment payment options. PayBright: A Canadian BNPL provider, PayBright has been acquired by Affirm, expanding its reach and capabilities in the Canadian market. Increasing BNPL Adoption Across Retail Sectors The BNPL sector in Canada is increasingly being integrated into industries beyond traditional retail, such as travel, entertainment, and essential services. For instance, Afterpay, Klarna, and Sezzle have partnered with merchants such as Indigo Books & Music to offer flexible payment options, particularly during high-demand holidays. This shift reflects the growing versatility of BNPL solutions and their appeal to consumers and merchants. The rapid growth of e-commerce in Canada has significantly contributed to expanding BNPL services as consumers gravitate toward seamless digital payment solutions. Younger generations, including Millennials and Gen Z, are leading this shift, favoring BNPL over traditional credit cards due to interest-free installments and payment flexibility. Additionally, merchants are adopting BNPL to reduce cart abandonment rates and attract cost-sensitive shoppers, further embedding this payment option across the retail landscape. BNPL adoption in Canada is expected to intensify as providers compete for partnerships with high-profile retailers and explore opportunities in non-traditional sectors. This trend is likely to gain momentum amid ongoing economic uncertainties, with consumers increasingly relying on flexible payment options for managing their finances. Providers must innovate and diversify their offerings as competition grows to capture a larger share of the expanding BNPL market. Entry of New Players and Domestic Innovations The Canadian BNPL market is witnessing the entry of new domestic players, such as KOHO, which has introduced a BNPL product catering to larger purchases. These startups are leveraging the rapid growth of the BNPL sector to carve out a market share by offering flexible payment solutions. Domestic innovations highlight the potential for local players to compete by addressing unique consumer preferences and regulatory requirements. The rapid adoption of BNPL in Canada presents significant opportunities for domestic fintech companies to gain traction. Local providers can appeal to consumers who value Canadian brands and offerings tailored to their needs. However, competition from established international players such as Afterpay and Klarna drives local innovation, forcing new entrants to differentiate through unique features, customer service, and seamless integration with Canadian banking systems. The entry of new players is expected to intensify competition, leading to a wave of innovation and more consumer-centric products. Domestic providers may capitalize on opportunities to fill gaps left by international competitors, such as creating solutions that align closely with Canadian consumer habits and financial frameworks. Over time, this dynamic competition will likely result in improved services and diverse Growth in Small- and Medium-Sized Merchant Adoption Small and medium-sized merchants in Canada are increasingly turning to BNPL services to compete with larger retailers and online platforms. By partnering with BNPL providers and platforms such as Shopify, these businesses can easily integrate flexible payment solutions, leveling the playing field. This adoption allows smaller merchants to enhance their offerings and cater to the growing consumer demand for installment-based payments. Platforms such as Shopify have simplified integrating BNPL services, making it more accessible for smaller businesses. These payment options enable merchants to attract price-sensitive customers who are more likely to complete transactions when flexible payment plans are available. By addressing consumer needs and strengthening their competitiveness, small businesses can boost customer retention and reduce cart abandonment rates. The adoption of BNPL among small and medium-sized enterprises is expected to grow steadily as providers introduce tailored solutions for these merchants. This trend could democratize the availability of BNPL services, allowing smaller retailers to compete in niche markets traditionally dominated by larger players. As more small businesses adopt BNPL, its penetration across diverse retail categories will likely accelerate, further embedding flexible payment solutions in the Canadian retail ecosystem. Growing Focus on Consumer Protection and Regulation The Financial Consumer Agency of Canada (FCAC) has increased its scrutiny of the BNPL sector to better understand consumer behavior and the potential risks associated with these services. The focus is primarily on protecting consumers from over-indebtedness and ensuring greater transparency in fees and repayment terms. These measures aim to address growing concerns about some BNPL users' financial vulnerability and create a safer environment for consumers. As BNPL adoption grows, concerns about consumers overextending their finances have prompted Canadian regulators to take proactive steps. Regulatory trends in international markets, such as the U.S. and Europe, influence Canada to address similar risks, ensuring that Canadian practices align with global standards. Additionally, complaints about unclear terms and unexpected fees have increased pressure on providers to adopt transparent and standardized agreements. Stricter regulatory measures are expected to reshape the BNPL landscape, driving providers to implement more robust credit assessments and clearer disclosure practices. While these changes aim to safeguard consumers, they may also limit the operations of smaller providers unable to meet compliance costs. Consequently, the market could see further consolidation, with larger, well-established players gaining a competitive advantage and setting new industry standards for transparency and responsibility. Expansion into Non-Traditional Sectors BNPL services in Canada are increasingly being adopted in non-traditional sectors such as healthcare, education, and home improvement. Providers such as PayBright, now part of Affirm, have partnered with healthcare providers to allow patients to finance treatments over time. This expansion highlights the versatility of the BNPL model and its potential to meet consumer needs beyond traditional retail purchases. Consumers seek flexible payment options for high-cost essential services, such as medical procedures or tuition fees. By reducing the upfront financial burden, BNPL providers make these services more accessible to a wider audience. This growing demand underscores the opportunity for BNPL to address financial barriers in sectors where affordability is a significant concern. The diversification of BNPL into additional sectors is expected to drive adoption for high-ticket purchases, offering providers a chance to secure a competitive edge in untapped markets. As more healthcare, education, and home improvement businesses recognize the value of BNPL solutions, partnerships in these areas are likely to increase. Providers that successfully integrate their services into these sectors may benefit from enhanced market reach and long-term growth opportunities. Recent Launches, Mergers, and Acquisitions Klarna's Integration with Apple Pay: In October 2024, Klarna announced its integration with Apple Pay, allowing Canadian consumers to make BNPL purchases directly through Apple's payment platform. Affirm's Acquisition of PayBright: In January 2021, Affirm completed its acquisition of PayBright, a leading Canadian BNPL provider, to strengthen its presence in the Canadian market. Anticipated Competitive Dynamics Market Consolidation: As the market matures, consolidation among BNPL providers is likely, with larger firms acquiring smaller competitors to expand their customer base and service offerings. Technological Innovations: Providers are anticipated to invest in technology to enhance user experience, such as integrating BNPL options into digital wallets and offering personalized payment plans. Expansion into New Sectors: BNPL services are expected to extend beyond traditional retail into sectors such as healthcare, education, and home improvement, providing consumers with more flexible payment options across various industries. Regulatory Changes Implemented In Canada, the BNPL sector has come under increased regulatory scrutiny over the past year. In October 2024, Option Consommateurs, a Quebec-based consumer rights group, released a report titled "Buy Now, Pay Later: Assessment of Risks and Remedies," which called on governments to regulate BNPL services to protect consumers. The report highlighted concerns about the lack of clarity in BNPL contracts and the potential for consumers to incur unexpected fees. Key Attributes: Report Attribute Details No. of Pages 88 Forecast Period 2025 - 2030 Estimated Market Value (USD) in 2025 $7.5 Billion Forecasted Market Value (USD) by 2030 $11.32 Billion Compound Annual Growth Rate 8.6% Regions Covered Canada Companies Featured Afterpay PayBright Klarna Sezzle Zip Splitit LatitudePay Flexiti Mogo Perpay For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Canadian Buy Now Pay Later Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
