ID Finance has launched Turrón by Plazo, a buy now, pay later card that automatically converts eligible purchases into interest-free instalments at partner merchants, both online and in-store. The product, live in Spain from 14 July 2026, is built around a combined e-money account and debit card and is distributed through the existing Plazo app.
The central design choice behind Turrón is the removal of the checkout step that most BNPL products require. Rather than asking a customer to select an instalment option at the point of sale, the Turrón card splits qualifying transactions automatically. The standard repayment term is three monthly instalments, with up to 12 months available for larger purchases at selected retailers. There are no maintenance fees and no subscription charge. Cashback on partner-merchant spending is tracked within the app.
Vitali Yermakou, country manager at ID Finance, said: “The card fits naturally into the way people already pay for everyday purchases, with instalments being applied automatically which removes the friction for customers when they are spending at merchants.”
Capital backdrop and profitability path
The launch follows a €140million structured funding round closed by ID Finance in 2024, the proceeds of which have supported Plazo’s build-out. The unit reached profitability for the first time at the end of 2025. The company said it now expects Turrón-driven merchant network growth to contribute to full-year operating profitability for Plazo in 2026, though it did not publish revenue figures or a transaction volume target alongside the announcement.
The funding structure is worth noting. The 2024 round was described as structured rather than equity, a category that typically includes debt facilities or revenue-based instruments, which have different implications for dilution and repayment obligations than a conventional venture round.
Market and regulatory context
Spain’s BNPL market is maturing rapidly, shaped by the European Consumer Credit Directive revision that took effect in late 2023 and extended affordability checks and disclosure requirements to short-term instalment products that had previously sat outside the consumer credit framework. Any BNPL issuer operating across the EU is now subject to more granular creditworthiness assessment rules, which raise the compliance overhead for the automatic-split model Turrón uses, as the underwriting decision must still be made before or at the point the card is issued rather than at checkout.
The competitive landscape in Spain includes both global BNPL players that have partnered with local merchants and domestic fintech lenders. The key differentiator ID Finance is pursuing is distribution through its existing Plazo user base rather than merchant-led acquisition, which is the model adopted by standalone BNPL providers such as those embedded at checkout by e-commerce platforms. Whether that base provides sufficient transaction volume to attract a competitive merchant network at scale is the commercial question Turrón’s first operating year will test.
The near-term milestones to watch are the number and category of partner merchants signed, whether ID Finance pursues a similar rollout in its other operating market of Mexico, and any update on the full-year profitability target as the 2026 results season approaches.
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