BNPL fintech platform Aplazo raises USD 70 mln

The financing round comes on the back of a threefold growth in revenue from rapidly expanding market share among online and offline merchants. The company will deploy the additional funds to continue shaping Aplazo’s product offering for consumers and merchants alike and double down on product innovation including using AI capabilities to better understand consumer and merchant needs and to enhance risk decisions.

Representatives from Aplazo said they set out to become the preferred payment method in Mexico through fair, simple, and transparent financial solutions, rather than traditional credit products that lure users into a debt trap. This behaviour has been common practice in Mexico, but they put the consumer at the core of their fair payment solutions offering.

A prominent payment choice in offline retail

Aplazo has positioned itself as a prominent player in the BNPL space by tackling the massive offline retail market, which represents around 93% of total retail sales in Mexico. Presently, in-store transactions account for roughly more than half of Aplazo’s business and have been a meaningful driver of retention and loyalty.

In many cases, Aplazo is the first and only credit source, noting that 70% of its users don't have another credit product registered on bureau records. This has been coupled with the firm’s ability to deliver low-single-digit credit loss rates.

Now, 40% of Aplazo’s users have no credit history, yet the company maintains a credit approval rate of over 80%. Aplazo stands out from other BNPL providers as the only player to give multiple possibilities of where a user can ‘Buy Now, Pay Later. Besides having one of the largest networks of merchants in Mexico, both online and offline, Aplazo offers a single-use virtual card that allows users to buy in installments anywhere they want.

Company officials said they’ve identified clear gaps in the market when they look at offering consumers better payment and financing products. They see an opportunity to provide deeper engagement with their customers as they start to transact more frequently with them. Their ability to offer ubiquitous BNPL services allows 88% of the Mexicans that don’t have credit cards to make every-day purchases and pay them later in instalments in a simple to understand way, which resonates well with the underserved Mexican population.