The rise and evolution of buy now pay later
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BUY NOW PAY LATER • BUY NOW PAY LATER (BNPL) has experienced phenomenal growth in the last few years. As people are shopping more they are getting to know about this comfortable option where they can purchase now and pay later. It has proved to be an excellent business model and an option for the financial sector to revive. It has changed a lot.
Look at the changes that took place over a year. • Change is imperative and something that should be continued throughout life. With this BNPL has reached different levels. BNPL has dominated the last three years and gained a huge customer list with attractive payment options. It is working in several sectors like fashion, retail, and more. A completely new evolution of BNPL can be seen in the financial service industry.
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Let’s have a look at the different stages of evolution. • An open loop system is now in trend A closed loop system means when the merchants and customers are connected through the BNPL provider. This value exchange happens within the boundaries as said and set by the Buy Now Pay Later provider means a contractual agreement is signed. In short, a cardholder can only use it to purchase from a single company. Whereas in an open loop the card can be used anywhere and it is accepted. • Increasing competition It has been for many years that banks were observing the growth of BNPL and no doubt the way it started and gained so much success with millions of active accounts. It is emerging as a threat to the financial institutions getting famous day by day with more customer engagement. BNPL pay has built trust in the market and in this way it is emerging as a threat to the rest of the institutions that are pushing themselves to rise above BNPL. Add a footer
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FR • BNPL in different segments BNPL providers have saturated the core industries and are looking for new categories to enter in order to garner more customers and grow from a business perspective. BNPL providers are adopting new strategies to enter into more segments and become a famous mode of payment. • Emerging from product to platform From just a product to a platform it is diversifying and emerging. BNPL is increasing its relevance and is dealing with different partners and adopting different policies. They are partnering and coming up with different collaborations making themselves a huge financial platform. Add a footer
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