The Promise and Risk of Buy-Now-Pay-Later (BNPL) for Micro and Small Enterprises
BNPL (Buy Now Pay Later) refers to a type of payment product that allows consumers to pay for goods at a later date or in installments over a short period of time, while receiving them immediately as if they have been paid for upfront. BNPL products can be used online and in-store. These products have grown in popularity in recent years, particularly during the pandemic, due to lockdown measures and digitization efforts.
While there have been long established forms of BNPL for many years, technological advancements are allowing fintechs, e-commerce sites, online retailers, and other providers to deliver cutting-edge digital services to their customers. Although BNPL provides a more attractive alternative credit product to low-income borrowers, it also carries significant risks that need to be managed, particularly in the context of the rapid growth of the BNPL market in recent times.
In this webinar, BNPL providers, payment experts, and policy makers will explore the different models that exist in their contexts, their benefits to MSEs, as well as the challenges and opportunities to scale these offerings in a sustainable manner. The session will also explore consumer protection challenges that are becoming more relevant as the BNPL market grows.
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Related resources: AFM warns: Using ‘Buy Now, Pay Later’ (BNPL) is easy but it has risks too