What is BNPL and why is it taking the world by storm?
Buy now pay later (BNPL) is an embedded finance method o ered at point of sale (POS) or cart checkout points, allowing consumers to make payments in installments or pay on the invoice after a determined period. Unlike traditional POS financing methods, BNPL users pay 0% interest rates to the BNPL app in most cases.
BNPL took the small and medium business (SMB) and e-commerce worlds by storm in the face of challenges such as supply chain issues, labor shortages and rising prices during the holiday season of 2021. PayPal reported a 400% Y-O-Y growth amounting to 750,000 BNPL transactions on the Black Friday of 20211 . PayPal also reported having more than a million first-time users in one month.
