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BNPL
(Buy Now, Pay Later)
BNPL is a short-term financing option that allows consumers to make purchases and pay for them in interest-free installments, typically over 4-6 weeks. This fintech-driven payment method has grown explosively, with global transaction volume reaching $300 billion in 2023.
Unlike traditional credit cards, most BNPL providers don't charge interest if payments are made on time, instead earning revenue from merchant fees (typically 3-6% per transaction). Popular services like Afterpay and Klarna integrate seamlessly with online checkout flows. While convenient, regulators are increasingly scrutinizing BNPL for potential consumer risks, as 30% of users report missing payments.
Unlike traditional credit cards, most BNPL providers don't charge interest if payments are made on time, instead earning revenue from merchant fees (typically 3-6% per transaction). Popular services like Afterpay and Klarna integrate seamlessly with online checkout flows. While convenient, regulators are increasingly scrutinizing BNPL for potential consumer risks, as 30% of users report missing payments.