Amazon to offer buy now, pay later in Mexico through fintech Kueski

(Bloomberg) — Inc. is partnering with Mexico fintech Cueschi, a “buy now, pay later option” and personalized payments, to offer payments in bi-weekly installments in Latin America’s second-largest economy. Focuses on debt.

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This partnership marks the first time that Amazon Mexico will allow users without a credit card to make purchases in up to 12 bi-weekly installments. Kueski will provide financing for purchases as well as determine the credit given to each user, Andrew Saez, the startup’s finance chief, said in an interview.

“This is an exciting milestone, because Amazon is such an important merchant in the context of Mexico,” he said. “With this agreement, people who were not previously able to access financing will be able to purchase products at Amazon.”

Crime in Mexico has been “very controlled” so far, he said.

Given that less than 50% of the population has a bank account, Mexico has emerged as a major market for financial services startups. Some fintechs that offer high-yield savings accounts are competing with yields as high as 15%, above the central bank’s key rate of 11.25%.

Kueski raised a $202 million Series C round in December 2021 led by Stepstone Group Inc. and Victory Park Capital. Cease said the company is in ongoing talks with its existing investors, and declined to provide further details about future financing plans.

Kueski has been in operation for 12 years, but launched its BNPL sector Kueski Pay three years ago. It currently has 620 employees and has given out approximately $15 million in loans.

“The outlook in Mexico is very strong from a macroeconomic perspective and consumer demand for our product.” Cease said. “So in the near to medium term we believe Mexico offers a very significant opportunity…

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