Brazil Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2023 Update

Brazil Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2023 Update

Report Description

The BNPL payment industry in Brazil has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

According to PayNXT360, BNPL payments in the country are expected to grow by 23.6% on an annual basis to reach US$6,031.9 million in 2023.

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. Consequently, PayNXT360 maintains a robust growth outlook for the sector from the short to medium-term perspective in Brazil.

Integrating BNPL schemes into the Pix platform is expected to drive transaction volume in Brazil

The Central Bank of Brazil launched Pix, the real-time payment method in November 2022. Since its launch, Brazil has recorded strong growth in its digital payments ecosystem. To further accelerate the growth of its innovative Pix platform, the Central Bank has been constantly introducing new features, such as Guaranteed Pix.
The new feature allows fintech firms and banking institutions to obtain credit for instant payments that are repaid in 12 to 24 interest-free installments. This is very much similar to the BNPL schemes. Providers such as Addi have started to offer interest-free Pix installments for e-commerce purchases. The integration of BNPL to the Pix platform is expected to accelerate BNPL transaction volume in Brazil over the next three to four years.

As Guaranteed Pix lowers the transaction costs for merchants, PayNXT360 expects more retailers to start providing their customers with a flexible payment scheme in the form of different BNPL options. This will also supplement the growing demand for BNPL services among consumers, subsequently driving the growth of the overall BNPL industry in Brazil.

BNPL startups are raising funding rounds to improve customer experience and strengthen the technology platform

Amid the rising competitive landscape in the Brazilian BNPL space, fintech firms and startups operating in the market are raising funding rounds to further create innovative experiences for their users, while also strengthening their platform services. For instance,
• In September 2022, Pagaleve, the Brazil-based fintech, announced that the firm had raised US$25 million in a Series A funding round, which has been led by Salesforce Ventures. Founder Collective, Janeiro Energy, OIF Ventures, and others, have also participated in the funding round.
• The fintech firm operates on a B2B2C business model and is largely focused on the e-commerce market. The target audience for the firm are consumers that are left out of the formal banking system and have trouble accessing credit card products in Brazil.
• With the new funding round, the firm aims to improve customer experience, while also boosting its merchant network. By the end of 2022, the firm plans to increase its merchant network from 500 to 1,000.

With BNPL schemes growing in demand among Brazilians, PayNXT360 expects more fintech firms, including startups operating in the BNPL space, to raise funding rounds from the short to medium-term perspective.

This report provides a detailed data centric analysis of Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Brazil. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Brazil through 57 tables and 71 charts. Below is a summary of key market segments:

Brazil BNPL Market Size and Spending Pattern, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later Revenue Analysis, 2019-2028

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Brazil Buy Now Pay Later Operational KPIs & Statistics, 2019-2028

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Brazil BNPL by Purpose, 2019-2028

• Convenience – Short Term Loans
• Credit – Loan Term Loans

Brazil BNPL by Business Model, 2019-2028

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Brazil BNPL by Merchant Ecosystem, 2019-2028

• Open Loop System
• Closed Loop System

Brazil BNPL by Distribution Model Analysis, 2019-2028

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Brazil Buy Now Pay Later Market Share Analysis by Key Players

Brazil BNPL Analysis by Channel, 2019-2028

• Online Channel
• POS Channel

Brazil Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later in Groceries: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Brazil Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2019-2028). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.

• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.

• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.

• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.

• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Brazil.