Amazon is joining forces with Mexican fintech Kueski to introduce a new payment option for its customers in Latin America’s second-largest economy. The partnership will enable Amazon Mexico users without credit cards to make purchases using a “buy now pay later” model, with the added flexibility of up to 12 bi-weekly installments.
Andrew Seiz, Kueski’s head of finance, highlighted the significance of this collaboration, noting that it opens doors for individuals who previously lacked access to financing options. He expressed enthusiasm about the partnership, emphasizing its potential to expand the reach of Amazon’s offerings in Mexico.
According to Seiz, Kueski will be responsible for providing the financing for these purchases and determining the credit limits for individual users. Despite concerns about potential delinquencies, Seiz reassured that the company has managed to keep them under control thus far.
The move comes as Mexico’s financial landscape undergoes a transformation, with a significant portion of the population still unbanked. This has created opportunities for fintech companies like Kueski to fill the gap by offering innovative solutions such as high-yield savings accounts, which are attracting customers with yields surpassing the central bank’s key rate of 11.25%.
Kueski recently secured a substantial investment of $202 million in a Series C funding round led by StepStone Group Inc and Victory Park Capital. Seiz indicated that the company remains in discussions with existing investors but refrained from disclosing specific details about future funding plans.
Having operated for 12 years, Kueski launched its “buy now pay later” service, Kueski Pay, three years ago. With a workforce of 620 employees, the company has already issued nearly 15 million loans. Seiz emphasized the company’s positive outlook in Mexico, citing robust macroeconomic conditions and strong consumer demand for their products. As a result, Kueski is focusing its efforts on further expansion in the Mexican market in the near to medium term.
(Source: PYMNTS | Silicon Angle | Finextra Research)
