BNPL Models

Tanisha Sabherwal
Tanisha Sabherwal
August 7, 2021

BNPL models, widely used and adopted are:

  1. 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.
  2. 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.
  3. 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%.

Distribution Layer

There are different distribution channels where BNPL has profitability potential and attract consumers for business. These


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