buy nowPay Later (BNPL) market, estimated to be priced at $120 billion in 2021, has increased significantly in the last few years. But for most of its rise to virtual checkout prominence, BNPL largely targeted everyday consumer goods like Urban Outfitters or Peloton’s clothing. Now, the credit method is expanding beyond its e-commerce roots.
Over the past few months, large companies have joined the BNPL market, with consumers hoping to get quick approvals for installment loans.
Established players such as Mastercard and Visa have launched BNPL services through their respective credit cards; mastercard too Estimated That there will be a transaction value of $7.2 trillion through BNPL by 2025. Stripe recently partnered with the BNPL heavyweight firm to offer payment plans to any business on its platform.
But as many large financial services companies seek to integrate BNPL into everything, a new fleet of early-stage startups are looking to refine the strategy and provide opportunities for specific industries from healthcare and childcare to groceries to charitable donations. Offers BNPL compliant version up to Rs.
While these services can help consumers access expensive necessities – in the case of medical bills or childcare – is it really a good idea for consumers to start paying even more in installments?
“From a demographic perspective, many people who shop now, pay later are less financially secure,” Blum told Meczyki.Net. “Not really a good credit check. Are they really aware? Do they understand the intricacies of some of that?”
However, this new fleet of startups makes a compelling argument why they shouldn’t be thought of like the first wave of BNPL startups.