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Buy Now, Pay Later

Buy Now, Pay Later

Buy Now, Pay Later is a service provided by companies extending credit facilities to consumers and enabling them to purchase items in monthly payments.

All edits by  Henry Ogolla 

Edits on 6 Mar, 2021
Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 6 Mar, 2021
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As of December 2020, Klarna said they had 2 million monthly active users through the year of 2020. While AfterpayAfterpay, in November 2020, had $1 billion of purchases through it's services. The company also saw 13 million signed up users in the United States and 5.6 million active users with an average age of 33. As well, Peloton partnered with BNPL service provider Affirm to give customers the option of no-interest, no-fee installment plans for as long as 39 months. And, according to Affirm's IPO filing, Peloton purchases accounted for 28 percent of their revenue since the partnership.

Edits on 6 Mar, 2021
Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 6 Mar, 2021
Edits made to:
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While the largest BNPL companies, by revenue and adoption - Klarna, Affirm, and Afterpay - are in Europe and North America, the expected region of large growth for BNPL service providers is Southeast Asia. This region has had low credit card adoption, in part because credit ratingcredit rating bureaus required by banks for dispersal of credit cards are not robust in the region as of 2020, the culture of the region is also debt-adverse. And they have embraced zero-interest installments that feel the same as cash.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 6 Mar, 2021
Edits made to:
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In response to this, credit card providers including American Express, CitigroupCitigroup, JP Morgan Chase, Visa, Mastercard, and PayPal have introduced new plans to be part of the buy now, pay later service market. Most of these plans are post-purchase plans which allow consumers to split a purchase of, generally, greater than $100 value into equal monthly interest-free payments.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 6 Mar, 2021
Edits made to:
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Afterpay, in regards to the concerns around missed payments, suggests that less than one percent of customers fall behind on payments. However, a study by Cornerstone AdvisorsCornerstone Advisors conducted in 2020 and for the previous two years found that 43% of those who used BNPL service were late with payments. Of those, two thirds said the reason for falling behind was that they lost track of the payments, not because they did not have the money.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 6 Mar, 2021
Edits made to:
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Article

In response to this, credit card providers including American ExpressAmerican Express, Citigroup, JP Morgan Chase, Visa, Mastercard, and PayPal have introduced new plans to be part of the buy now, pay later service market. Most of these plans are post-purchase plans which allow consumers to split a purchase of, generally, greater than $100 value into equal monthly interest-free payments.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+10/-10 characters)
Article

In response to this, credit card providers including American Express, Citigroup, JP Morgan Chase, Visa, MastercardMastercard, and PayPal have introduced new plans to be part of the buy now, pay later service market. Most of these plans are post-purchase plans which allow consumers to split a purchase of, generally, greater than $100 value into equal monthly interest-free payments.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+6/-6 characters)
Article

In response to this, credit card providers including American Express, Citigroup, JP Morgan Chase, Visa, Mastercard, and PayPalPayPal have introduced new plans to be part of the buy now, pay later service market. Most of these plans are post-purchase plans which allow consumers to split a purchase of, generally, greater than $100 value into equal monthly interest-free payments.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+11/-11 characters)
Article

In Southeast Asia, credit card usage ranges from a few percent to 20 to 30 percent across most countries versus the 60 to 80 percent in Europe and North America. While there is low credit card adoption, BNPL companies Kredivo and Akulaku both have over 10 million installs of their apps on Google PlayGoogle Play, and Hoolah (based in Singapore) grew it's transaction volume by 1,500 percent during 2020. In the region, the average basket size is under $200. And, despite the lack of credit bureau's, the regions widespread use of digital wallets offers BNPL service providers a different, if equally rich, spending history to base their acceptance on.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+14/-14 characters)
Article

While the largest BNPL companies, by revenue and adoption - Klarna, Affirm, and Afterpay - are in Europe and North America, the expected region of large growth for BNPL service providers is Southeast AsiaSoutheast Asia. This region has had low credit card adoption, in part because credit rating bureaus required by banks for dispersal of credit cards are not robust in the region as of 2020, the culture of the region is also debt-adverse. And they have embraced zero-interest installments that feel the same as cash.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+6/-6 characters)
Article

While the largest BNPL companies, by revenue and adoption - Klarna, Affirm, and Afterpay - are in EuropeEurope and North America, the expected region of large growth for BNPL service providers is Southeast Asia. This region has had low credit card adoption, in part because credit rating bureaus required by banks for dispersal of credit cards are not robust in the region as of 2020, the culture of the region is also debt-adverse. And they have embraced zero-interest installments that feel the same as cash.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+14/-14 characters)
Article

While consumers have concerns around the use of credit cards, BNPL lending programs are not subject to strong federal regulations. Depending on the region, these programs receive minimal, and inconsistent oversight from federal and state bank regulators. In part because of this, some BNPL platforms were flagged in the United KingdomUnited Kingdom by the Financial Conduct Authority (FCA) for encouraging consumers to accrue debt. The FCA published a ruling on February 2, 2021 which determined BNPL products should be brought within regulatory oversight urgently.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+13/-13 characters)
Article

While the largest BNPL companies, by revenue and adoption - Klarna, Affirm, and Afterpay - are in Europe and North AmericaNorth America, the expected region of large growth for BNPL service providers is Southeast Asia. This region has had low credit card adoption, in part because credit rating bureaus required by banks for dispersal of credit cards are not robust in the region as of 2020, the culture of the region is also debt-adverse. And they have embraced zero-interest installments that feel the same as cash.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+16/-16 characters)
Article

There are a few concerns around buy now, pay later services. While the service provider offer a way for consumers to not accumulate credit card debtcredit card debt, however there is a concern that installment payments can still allow consumers to let their spending to get ahead of their income.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+9/-9 characters)
Article

In Southeast Asia, credit card usage ranges from a few percent to 20 to 30 percent across most countries versus the 60 to 80 percent in Europe and North America. While there is low credit card adoption, BNPL companies Kredivo and Akulaku both have over 10 million installs of their apps on Google Play, and Hoolah (based in SingaporeSingapore) grew it's transaction volume by 1,500 percent during 2020. In the region, the average basket size is under $200. And, despite the lack of credit bureau's, the regions widespread use of digital wallets offers BNPL service providers a different, if equally rich, spending history to base their acceptance on.

Henry Ogolla
Henry Ogolla approved a suggestion from Golden's AI on 5 Mar, 2021
Edits made to:
Article (+13/-13 characters)
Article

These include PayPal's Pay in 4 and Pay in 3 plans which allow users to pay through a PayPal account and turn their payments into installment payments. American Express introduced their "Plan It" service to it's United StatesUnited States cardholders, which allows those to split up purchases of $100 or more into equal monthly payments for up to 24 months with no interest. The service has seen 5.5 million plans created worth more than $4 billion since introduction. The average plan size is $815. Similar to American Express' Plan It service, Chase introduced My Chase Plan that accepts equal monthly payments on purchases over $100 with a fixed monthly fee and no interest.

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