Venezuela’s Antitrust Body Sets Rules for ‘Buy Now, Pay Later’ Apps as Market Heats Up
CARACAS – Venezuela’s Superintendency for the Defense of Economic Competition (Sudeco) has established a regulatory framework for consumer financing applications, commonly known as “Buy Now, Pay Later” (BNPL) services, as the sector experiences rapid growth and increasing competition. The move aims to foster a level playing field and protect consumers in a market increasingly dominated by digital financial solutions.
The new regulations come as several companies vie for market share in Venezuela’s burgeoning BNPL space. Lysto, a local fintech, recently announced plans for aggressive expansion following a strategic partnership with technology retailer Kanguro, available nationwide. The company projects growth exceeding 300% by year-end. This expansion occurs alongside established player Cashea, which Lysto founder and director Garber acknowledges as a key inspiration and “a very well-positioned company.”
Sudeco’s intervention signals a proactive approach to managing competition within the digital economy. The regulations are expected to address issues such as clarity in lending terms, data privacy, and fair competition practices. While specific details of the framework haven’t been fully disclosed, the agency emphasized its commitment to ensuring a competitive environment that benefits both consumers and businesses.
Lysto intends to solidify its position within Venezuela before expanding internationally.The company’s success is fueled by the increasing digitization of the Venezuelan economy, allowing for broader reach and accessibility. The regulatory clarity provided by sudeco is anticipated to further encourage investment and innovation in the sector, while simultaneously safeguarding consumer rights.
