In a difficult economy, people need opportunities and access to financial products that serve as tools to foster financial inclusion. Services Buy Now Pay Later (BNPL) they play a key role in closing inequality gaps in the global economy and allowing both consumers and sellers to benefit.
When you hear the phrase financial inclusion, what do you imagine?
In every society, the economy unites the segments of the population, and as has always happened, some people have more resources, others less. What this is about is that the greatest number of people can access a financial product, such as a credit, an Afore or a bank card that allows them to receive or save money.
This makes it easier to have tools to insert themselves into an economic dynamic. Without them, people may not be competitive and may be missing out on opportunities to improve their income and access to an already established asset movement network. In this article I will tell you about financial inclusion and one of its tools: the BNPL.
What is financial inclusion?
For there to be financial inclusion it is necessary that the government and private financial entities —such as traditional banking or what are now called neobanks— coordinate, provide the population with accessible solutions and products and at the hand of the majority.
Therefore, the greater financial inclusion, the greater the boost that regional economies can have: credits for people, where jobs are generated, poverty can be reduced and inequality gaps can be shortened.
This is due to having access to capital by society, there are possibilities for productivity to increase, to generate more and better profitable bets and that both individuals and companies obtain benefits in the short and medium term.
A good example of this is the digital accounts of neobanks: these are much easier to open than those in a conventional bank. Sometimes, in a matter of a few hours they approve the acceptance and in less than a week you already have access to the cards, in addition to the fact that they do not have many of the traditional charges, such as the annuity in credit cards.
Mexico within financial inclusion
In Mexico there are products that have been promoted to improve financial inclusion in recent years. As an example, there are the CODI electronic payments, that even with only one, it is possible to transfer money without the need for cash.
According to (ENIF) 2021, prepared by the National Banking and Securities Commission (CNBV) and the National Institute of Statistics and Geography (INEGI), Mexico advances in financial inclusion, but it does so slowly.
According to the study, in a comparison made between 2018 and 2021, there was an increase from 24.6 million to 27.4 million people with access to formal credit. In other words, 2.8 million people were added and, in percentage terms, coverage rose from 31.1% to 32.7% of the Mexican population, which gives a total of 1.6%.
The report shows graphs of the country divided by economically active zones and allows us to see that the northern zone is the one with the highest penetration in the use of credit cards, the northwest has a percentage of 41.2% and represents the zone with the highest number of users. , while in the south, the formal credit holding is in the order of 27.3%, a very notable difference of almost 14% and that in some way allows us to see the marginality that exists in this area of the country.
What does BNPL mean?
Due to the gaps in access to financial products, BNPL services, an acronym for the English expression ‘Buy Now Pay Later‘, or translated into Spanish: buy now and pay later.
With the BPNL solutions are added to the existing ones, and thanks to them it is possible to aspire to an improvement in financial inclusion. With this payment method, payments are deferred without any extra charge, clients do not have to go through rigorous reviews of their personal finances and an approval from a bank is not needed..
How does the BNPL help financial inclusion?
Buy now, pay later is a win-win for everyone involved: buyers have access to payment flexibility, get goods and services that would otherwise be more difficult to acquire.
In addition, the installment payment allows them to plan their expenses and project part of their income to pay their new debt, but having cash so as not to neglect the rest of their regular expenses.
On the other hand, those who sell open a window to increase their cash flow, since more people can access their products with this soft payment method.
It does not mean an extra outlay for the company or the entrepreneur; Nor does it mean deferring the delivery of the money from your sales for long periods, it is only a matter of joining this new financial wave and offering the installment payment tool to your buyers, so that your portfolio of potential clients increases immediately.
Even as a marketing tool it is also a benefit for sellers, since there are more and more customers who only purchase products through this payment methodand being in the sales catalog with installment payment automatically become one for this segment of buyers.
And this phenomenon does not only occur in Mexico, it is happening all over the world, many investors and companies are observing a good performance in this business model, since the indicators show that there is sustained growth in the acceptance of this payment method.
In conclusion
At a global level, experts such as the World Pay association carry out an annual report, and in the most recent They assure that payment in installments will represent 9% of spending on ecommerce by 2023, an amount that is not minimal, observing the growth of online commerce month after month.
Definitely, BNPL is a financial dynamic that is here to stay, as many people benefitallows an economy without stagnation and those who are not subject to credit by traditional financial institutions, may have an opportunity to be taken into account in the new paradigm of the network economy.
In this new world of possibilities and to promote financial inclusion, Aplazo arrived in Mexico, as an accessible and flexible financing option, under the BNPL model that allows you to buy on credit now and pay later in installments. Meet him.
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