6 New Twists on Buy Now/Pay Later Loans | source of payment
Buy now/pay later loans boomed during the pandemic as BNPL fintechs introduced a turnkey way for consumers with little or no credit to shop online, creating a phenomenon that continues to have a major impact.
Some setbacks are for big BNPL fintechs like e.g Confirm and Klara, which have depreciated sharply in the markets in recent months in response to rising inflation, higher interest rates and increased competition. The Consumer Financial Protection Bureau also recently said it could develop guidelines on this Keep BNPL lenders in check whose practices are largely unregulated.
But the popularity of buy now/pay later loans is undeniable as more than half of US consumers have tried a BNPL loan and more than 90% of users say they are happy with the concept, according to a survey conducted by Morning among 2,200 US adults counseling on behalf of the Financial Technology Association between September 1-3, 2022.
Other industries – even traditional credit card issuers – have seen BNPL loans resonate with consumers. Many are now trying to adapt the product to their business models with a few tricks. From charitable donations to animal care, here are the areas where BNPL loans have sparked financial innovation.