Buy now, pay later (BNPL) is an emerging service which makes it easier for consumers to afford their purchases.
As an investor, you might want to sit up and take note.
In a nutshell, here’s how BNPL works.
BNPL companies partner up with merchants, allowing customers to make their payments in a series of interest-free instalments.
The BNPL service provider will settle the full cost of purchase to the merchant right away, taking a small cut of the purchase price in return.
This cut is termed “merchant fees”.
Late fees are also charged to customers who miss their payment deadlines.
Customers love BNPL services because there are no fees involved if payment is made on time, and the onboarding process is fast and easy.
As BNPL options become more widespread, opportunities for investments will increase as well.
Here are three reasons why your next investment could be a BNPL company...
