ID Finance has introduced Turrón, a groundbreaking buy now, pay later (BNPL) card that streamlines the payment process for consumers in Spain. Officially launched on July 14, 2026, Turrón is integrated into the existing Plazo app and automatically converts eligible purchases into interest-free instalments at partner merchants, both online and in-store. This innovation eliminates the typical checkout step associated with most BNPL products, allowing for a seamless payment experience where transactions are split into three monthly instalments, with an option for longer terms on larger purchases. The card comes with no maintenance fees or subscription charges, further enhancing its appeal to consumers seeking flexible payment solutions.
The launch follows a successful €140 million structured funding round completed by ID Finance in 2024, which has facilitated the growth of the Plazo platform. The company reported that Plazo achieved profitability for the first time at the end of 2025 and anticipates that the Turrón card will drive further growth in its merchant network, contributing to full-year operating profitability in 2026. However, specific revenue figures and transaction volume targets were not disclosed, leaving some uncertainty around the product's market penetration.
Turrón enters a rapidly evolving BNPL landscape in Spain, influenced by recent regulatory changes under the European Consumer Credit Directive, which impose stricter creditworthiness assessments for short-term instalment products. This regulatory environment necessitates careful compliance for ID Finance, particularly as the automatic-split model requires underwriting decisions to be made prior to the card's issuance. The competitive landscape includes both established global BNPL players and local fintech lenders, with ID Finance aiming to leverage its existing user base for distribution rather than relying on merchant partnerships alone. The success of Turrón will depend on its ability to attract a robust network of partner merchants and generate sufficient transaction volume in its inaugural year.
Investors and industry observers should closely monitor Turrón's initial performance, particularly the number and types of partner merchants that come on board, as well as any potential expansion into other markets such as Mexico. Additionally, updates regarding Plazo's profitability targets as the 2026 results season approaches will provide insights into the product's impact on ID Finance's overall growth strategy.
The launch follows a successful €140 million structured funding round completed by ID Finance in 2024, which has facilitated the growth of the Plazo platform. The company reported that Plazo achieved profitability for the first time at the end of 2025 and anticipates that the Turrón card will drive further growth in its merchant network, contributing to full-year operating profitability in 2026. However, specific revenue figures and transaction volume targets were not disclosed, leaving some uncertainty around the product's market penetration.
Turrón enters a rapidly evolving BNPL landscape in Spain, influenced by recent regulatory changes under the European Consumer Credit Directive, which impose stricter creditworthiness assessments for short-term instalment products. This regulatory environment necessitates careful compliance for ID Finance, particularly as the automatic-split model requires underwriting decisions to be made prior to the card's issuance. The competitive landscape includes both established global BNPL players and local fintech lenders, with ID Finance aiming to leverage its existing user base for distribution rather than relying on merchant partnerships alone. The success of Turrón will depend on its ability to attract a robust network of partner merchants and generate sufficient transaction volume in its inaugural year.
Investors and industry observers should closely monitor Turrón's initial performance, particularly the number and types of partner merchants that come on board, as well as any potential expansion into other markets such as Mexico. Additionally, updates regarding Plazo's profitability targets as the 2026 results season approaches will provide insights into the product's impact on ID Finance's overall growth strategy.
Source: The Fintech Times
