How 'buy now, pay later' became a coronavirus counter to credit cards
The COVID-19 pandemic has teed up a growth opportunity for the buy now, pay later (BNPL) financial industry, as recession worries made people receptive to entering short-term payment plans that can fit in a budget.
The broadening of the BNPL market to include both installment lending and deferred debit models has also made it easier for consumers and merchants alike to cozy up to this new generation of financial products that had already found success with millennials and Gen Z before the pandemic.
Because of the spotlight on the BNPL market, one company, Affirm, is reportedly considering a $10 billion IPO amid the pandemic. The BNPL market has become increasingly crowded with companies such as Klarna raising funds to compete and new players such as Afterpay and Splitit recently having gone public.