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The 'Buy Now, Pay Later' Bubble Is About to Burst

3 pointsby aarghhover 2 years ago

1 comment

ddulaneyover 2 years ago
I&#x27;ve been surprised at how widely set up these programs are. They must have some models that they show retail CEOs that&#x27;s highly compelling. (I assume that model includes sales going up and to the right.)<p>But the costs seem insane to me! I know that retailers are willing to pay a few percent to lock in a sale (traditionally going to subsidize gift cards, referral programs, etc.), but giving up interest for months and leaving a cushion for defaults and leaving enough for the BNPL company to make their profit? I&#x27;ve just been surprised that there&#x27;s enough to go around. Does anybody have a sense for what companies who do this are thinking?