Read more about Fintech
According to Investopedia, Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. Also referred to as “point of sale installment loans,” BNPL arrangements are becoming an increasingly popular payment option, especially when shopping online. Starting a BNPL platform requires understanding the rudiments and requirements that make it a successful venture. Venturing into BNPL is still quite nascent compared to other sectors in the FinTech industry. In this article, I discuss seven must-needed features for BNPL.
BNPL Is A Quick Installment Payment Service
Sign up for the Connect Nigeria daily newsletter
For example, BNPL means that if the car costs the sum of 1 Million Naira, the consumer can pay for it in 3 installments of 333,000 Naira each over 3 months.
BNPL Is Discount-Based
BNPL Runs Effectively On Spreading Payments
BNPL Is About Discretionary
BNPL Works Effectively With Credit Quality Customers.
Register to attend the Connect Nigeria Business Mixer
The BNPL provider has many costs, if the merchant discount is 3%, the BNPL now has to pay:
- Cost of finance
- Operational costs
- Credit losses
BNPL Works Well On Loan-For-Product Model
BNPL Is Frictionless
Final WordsBNPL is a very interesting FinTech service that is highly needed in an emerging market like Nigeria due to several reasons. First, Nigeria is a middle-class economy where people live from paycheck to paycheck, which has made it difficult for them to meet their needs. And people often have to let go of a significant part of their earnings, if not all, to purchase things. Hence, this makes it profitable for BNPL to establish its startups in Nigeria. Featured Image Source: Empower2Free
Got a suggestion? Contact us: email@example.com
You might also like:
- Flutterwave Expands Remittance Offering to India
- 6 Steps to Starting a Career in FinTech in Nigeria
- How Nigerian FinTech Can Make Waves in Western Markets
- Strategies for FinTech Companies to Increase App Adoption