Buy-now, pay-later platforms are growing their appetite to offer interest-bearing loans, a traditional consumer credit segment they had competed against.
Relying on fees paid by merchants, instead of charging consumers interest, has been one of the few financial features that distinguish buy now, pay later, or BNPL, from other established consumer credit products, such as credit cards and point-of-sale financing. But as rising funding costs bite into the margins of interest-free BNPL products, leading players in the segment are increasingly leaning on interest-bearing loans.
According to Yaacov Martin, CEO of Jifiti, banks are also applying the concept of embedded finance into business lending, while the fintech BNPL players mainly focus on consumer lending,
Read the full article in S&P Global.
