In Mexico, the market for interest-free installments reaches 670,000 billion pesos per year, which is why the Australian fintech company Zip It expanded its operations to the country and seeks to offer an alternative where people can defer their payments, without needing a credit card.

The company's general manager in Mexico, Carlos Magaña, pointed out that globally they have 52,000 enrolled businesses, but at this time only within the national territory They have dozens of businesses added to their platform and expect to reach 700,000 businesses by the end of the year; while in less than a year they are confident of having more than 100,000 users.

He also commented that his platform currently... It is only available in online stores as an alternative payment method.They retain the customer relationship and pay the company in less than 2 days; but next year they could reach physical stores.

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“The market for interest-free installments is around 670,000 billion pesos per year of what is spent on credit cards…What is truly relevant about Zip's proposal is that it extends the possibility of paying in installments to consumers, even if they do not have a credit card.“Magaña stated.

Carlos Magaña specified that it is an alternative that is geared towards transactions that on average are in the range of 4,000 to 6,000 pesos, for all types of products and services.

In this regard, the executive said that they raised $400 million, which they will allocate to new markets such as Mexico and Canada, so they have that funding to guarantee people in the country access to purchasing power.

“In Mexico we have seen that the E-commerce It has experienced significant growth in the last 12 months. With Zip, an innovative, transparent digital BNPL option arrives where purchases can be made in installments without interest, but now with a debit or payroll card, which represents a revolutionary option never before seen for e-commerce in Mexico.”

The company operates in more than 13 countries with over 7 million users and more than 50 affiliated businesses. where at the final moment of the purchase Zip is chosen as the payment method and it is divided into 4 payments, which can be paid off in fortnights without interest.

For the company, Mexico is one of the fastest-growing e-commerce markets in the world and represents a significant growth opportunity for the deferred payments category.

Although various traditional forms of installment payments such as credit cards, apps, and retail financing are currently available in the country, interest rates on these types of loans can reach up to 90%, which remains a significant limiting factor for Mexican consumers.

At the same time, the firm indicated that e-commerce is booming in the Latin American region, with 90% of consumers buying through this method.

“If we analyze the most recent results on e-commerce, we have seen that 71% of online transactions in Mexico are made with a debit card. This means that most users, when making purchases, cannot access installment payment plans; furthermore, since they are buying directly with their own money, they are more cautious in choosing where and how to buy.”

For businesses, the data shows that retailers offering deferred payment options at checkout see an average increase of 70% in repeat purchases and a 30% increase in new users.