The “Brazil Buy Now Pay Later Business and Investment Opportunities Databook” report found that BNPL payments are expected to grow by 23.6% on an annual basis to reach US$6,031.9 million in 2023.
The BNPL payment industry in Brazil has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.
Medium to long term growth story of BNPL industry in Brazil remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 13.7% during 2023-2028. The BNPL Gross Merchandise Value in the country will increase from US$4,879.4 million in 2022 to reach US$11,482.8 million by 2028.
Brazil already has a well-established installment payment ecosystem. Most consumers have adopted credit cards to boost their purchasing power, especially for higher-ticket purchases. However, the lack of formal employment and higher annuity fees has left many Brazilians underbanked. With the majority of the population lacking access to credit cards, buy now pay later schemes have turned out to be the biggest winner over the last few years in Brazil.
The adoption of BNPL schemes is expected to surge significantly among consumers amid the rising inflation and surging cost of living. The robust digital infrastructure and integration of the Pix system with BNPL schemes are also expected to drive growth momentum for the industry over the next three to four years.