Is buy now, pay later a sustainable business model? | FT Tech

Pandemic lockdowns accelerated the already growing popularity of buy now pay later transactions. But for the operators behind these transactions, margins are wafer thin. So how sustainable is the business model?

#buynowpaylater #retail


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[sebastian.v]

Save Now, Buy Later 👌

This stuff gets dangerous when people resort to BNPL as a last resort.

[nsp]

Pay when you buy; buy when you have the cash. If you don't have the cash, don't buy. It will make your life much easier.

[Alan-Aus]

I like ZIP, so much easier to use and the people are friendly to talk to

[notKhalid]

BNPL has already been in use since decades in India in the B2B space used by retailers(small businesses) to pay off suppliers in installments 😂

[keewng]

BNPL tempting! Missed one payment you are knackered with rising costs of living your credit card max'! You are "Double Whammied"

[frankcooke]

I racked up $1000, i only have to pay back $40 per month, which I can then immediately spend again, so really It's only costing me the $8 monthly account fee. If I just kept doing that - they don't see a return for about 12 years. And I know that a lot of people do the same. That's not sustainable - but that makes me wonder what tricks they have up their sleeve to make it sustainable later down the track. They make some sacrifices early on to gain market share - once they've got that, they jack up the prices. Just like Netflix and UberEats - except I can opt out of those.

[darknature-ww]

BNPL is a business selling a product/service. It's up to you as a consumer to either choose to use this service or refuse. It's that simple.

[TalwinderDhillonTravels]

Does having an app make you a tech company?? That’s what they keep on referring to these companies as.
Chase bank also has an app too🤷🏽‍♂️

[kwektans]

Nice name for loan sharks. Useful when interest rates are low but bankrupting when rates are high.

[thechosenone]

Sounds like a fancy term for credit cards.

[iceman]

That Klarna guy made me chuckle. There only concern is profit.
The issue is BNPL doesn't, as yet, check the financial well being of persons using its service.
The supply chain B2B idea sounds just like Geenshill. An attempt to repackage something that isn't fancy

[hjsti]

the way these services work is like a fail safe so you dont get poteniacly scammed. its a get now pay after thing. you still need to afford the product without loans.

[mattcgw]

Well they don't charge interest.
Whilst many other retailers charge 25%.

[TSquared]

Sounds like credit cards, which will eventually equal debit.

[shereeb]

So why are people mad about BNPL when there are credit cards…the thing is it’s gives people who the banks don’t approve and option that’s why the there’s push back. Banks are fearful about this because they are profiting from people who they have locked out and don’t want anyone else to serve. Most please can make payments. How many people are swimming in credit card debt? I guess that is ok as long a big banks are doing it

[_orodrigofernandes]

Did anyone ever visited Brazil??

Lol.

BNPL is the norm around here for decades. You can buy clothes, appliances, cars... and spread the payment in instalments.

Even football clubs spread the payments of players' transfer fees over many years...

There's a thing called cashflow that I hope FT knew a bit about. LOL.

Besides this BNPL, any company can borrow money from a bank or financial instituion to improve their cash reserves...


I didn't get what's the novelty...

[williamhaynes]

with intrest rates going way up, their profit is way down

[gigamesh]

With younger generation being more impulsive than before since education is more about "connect with your emotion" and less about "discipline at all cost from the 70's", Younger people will be more enslaved to their debt than ever before with this systeme. Teach your sons how to navigate before this model start to take more impact

[ZacandDora]

The Instagram of banking is guff. What nonsense. Bank apps work fine. This piece misses the point about how BNPL can help people.

[SavingsMinusDebt]

BNPL only deal with high risk customers.