Lending Perspectives: Is buy now, pay later a plate of cookies or a lump of coal?

Holiday time may be the perfect time to pay attention to BNPL lending.

If you haven’t been paying attention to buy now, pay later lending, perhaps the holidays are a perfect time to take notice. In the last few months, there has been a flurry of news in the financial press on the rise of BNPL lenders. While this new breed of lenders existed before COVID-19, it seems as though there has been a tremendous increase in momentum for consumers to utilize BNPL and repay in a three- to 12-month period rather than use a credit card or cash to make mid-priced purchases, including this article on CUmanagement.com

There is plenty of news, but is the opportunity for credit unions to capitalize on BNPL more like a plate of Santa’s cookies or a lump of coal in your stocking?

Understanding the Buy Now, Pay Later Models

From my initial analysis of the major players in the BNPL market, there are three primary business models.


continue reading »