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