Buy Now Pay Later

Buy-now Pay-later: Business Models and Market Overview

Autor: Andres Santiago Garcia Alvarez

2021 - Masters Degree Thesis

Extract of the Introduction

The global payment sector is a changing and prone to disruption environment. The market is demanding more flexible, dynamic, and performing payment methods and
customers are looking for alternative ways of credit. The current trends of the industry have been shaped by an increased appetite for digital services partly driven by the eruption of COVID-19. As Capgemini (2021) mentions, from a user perspective, there is a growth in the affinity with B2B digital payments, a tendency to share personal data and a propensity to try new digital products.
To cope with this, retailers feel the pressure to transform digitally, incorporate new technologies and maintain a diversified payment trail (Capgemini, 2021). This ecosystem has been attractive for the emergence of new platforms, players, and the creation of new business models to satisfy the needs of both providers and customers. In this sense, buy now pay later is one of the new products that gained a lot of force in the previous years and came out as an alternative to credit cards and as a solution for customers that are keen to explore new credit options, especially the under 30