The Rise and Fall of BNPL: Is the Due Date Near for 'Pay Later' Services? - 0 views
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John Kiff on 18 Mar 24Interest in buy now pay later (BNPL) services seems to be waning. BNPL is an installment plan that allows consumers to pay for purchases later in equal installments. BNPL services profit by levying charges on merchants for transaction processing and occasionally by imposing late fees or interest on customers who fail to pay punctually. It has been described as "similar to a credit card but without the hassles of an application process, card-swiping infrastructure, and separate limits for purchases and cash withdrawals". However, the BNPL sector now seems to be in decline, with numerous BNPL services either retracting or ceasing operations altogether, as high interest rates challenge the basic business model and regulatory pressure.