Kueski will provide the financing for the purchases as well as determine the credit given to each user.
Photographer: Alejandro Cegarra/BloombergAmazon.com Inc is partnering with Mexico fintech Kueski, which focuses on “buy now pay later options” and personal loans, to offer payments in bi-weekly installments in Latin America’s second-largest economy.
The partnership marks the first time Amazon Mexico will allow users without a credit card to make purchases of up to 12 bi-weekly installments. Kueski will provide the financing for the purchases as well as determine the credit given to each user, said Andrew Seiz, the startup’s head of finance, in an interview.
“It’s an exciting milestone, given Amazon is such a significant merchant in the context of Mexico,” he said. “With this agreement, people who may not have been able to access financing before will be able to purchase products in Amazon.”
Delinquencies in Mexico so far “have been very controlled,” he added.
Mexico has emerged as a key market for financial services startups given that less than 50% of the population has a bank account. Some fintechs that offer high-yield savings accounts are competing with yields of 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. The company is constantly in conversations with its existing investors, Seiz added, declining to give more details on future financing plans.
Kueski has been in operation for 12 years, but launched its BNPL area Kueski Pay three years ago. It currently has 620 employees and has granted nearly 15 million loans.
“The outlook in Mexico is very robust, from a macroeconomic perspective and consumer demand for our product.” Seiz said. “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.”