How BNPL Really Works - by Jeremy Solomon

fintechfundamentals.substack.com · 4,019 words · saved by 1 readers

Part payment method, part credit product, Buy Now Pay Later offers a window into the next generation of innovation in consumer lending

While I no longer have to answer the question “what firm?” when describing where I was previously employed, I still find that the general public—and even the consumer finance community—does not grasp how Buy Now Pay Later (BNPL) works. In fact, the market view feels more like a kitchen sink approach to the alphabet soup of players in modern purchase finance. While one could generically say that all BNPL players are letting a consumer (SMB is worth its own piece) purchase an item today in exchange for installments, this fails to recognize the diversity of business models and risk being taken…

How BNPL Really Works - by Jeremy Solomon

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