BuyNowPayLater Growing
It is a new redesign: shift the bills to merchants. But of course the merchants do not mind if they can bill everything in the product. BuyNowPayLater is becoming a new phenomenon in the fintech space. Pay attention to it in Africa.
Amid booming online shopping, a slew of new financial companies have sprung up that allow consumers to pay for items in installments — interest free — threatening the dominance of credit cards for e-commerce transactions. Instead of charging hefty interest for late payments, firms such as Klarna and Afterpay have shifted fees onto merchants (attracting some criticism), of which tens of thousands now use the services to attract customers not ready to pay up front for purchases. Pay later programs have spiked among younger Americans over the last year, says Bloomberg.