August 7, 2021
BNPL models, widely used and adopted are:
- Revolving Credit: Similar to Credit Cards where one is provided with a certain limit and need to pay within a certain time period, say 14 days.
- Pay in X: For medium and large ticket sizes, this allows splitting the amount into X installments and the first installment is debited from the account immediately. More adoption for the same in the west.
- POS lending: This is available during checkout where you can pay in installment, post purchase. This is either with interest or interest-free. Merchant might give the customer some cashback in return to the fee, essentially making it 0%.
There are different distribution channels where BNPL has profitability potential and attract consumers for business. These