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com/paymentsjournal/p/paymentsjournal. com/wp-content/uploads/2022/07/Zoot-001-002-mixdown. mp3Podcast: Play in new window | Download Buy Now, Pay Later (also known as BNPL) as a consumer financing option — and, importantly, a merchant marketing tool — is a relatively recent arrival to the scene, if also a fresh branding of a not-so-new idea.

PaymentsJournalReexamining Buy Now, Pay Later as PayPal Makes a Bigger MovePaymentsJournal Reexamining Buy Now, Pay Later as PayPal Makes a Bigger MovePaymentsJournal PayPal’s June 15 announcement of its Pay Monthly product, allowing customers to make a purchase and break the payments over 6 to 24 months, proved a good entry point for a PaymentsJournal Podcast discussion among three veterans of the consumer lending space and its associated technologies: Brian Riley, Director of Credit Advisory Service at MercatorApur Shah, Senior Director of Merchant Growth at PayPalRandy Broadbent, National Account Manager/Solutions Consultant at Zoot Solutions, an enabling technology behind PayPal’s offering PayPal’s initiative comes at a time when BNPL offerings are undergoing a shift. Originally driven by younger consumers attracted to flexible payment options, BNPL has made strides toward being governed by more traditional aspects of consumer credit. Riley, Shah, and Broadbent discussed a range of topics, including what PayPal saw in the BNPL space that prompted this new offering, the challenges involved in credit risk decisioning and underwriting for BNPL services, how the players in the space are shaking out, and the perspective of merchants and how they drive BNPL.

After all, Riley pointed out, it’s a merchant-centric payment proposition, which is the twist that BNPL puts on older, similar financing models that were centered on the consumer. “It really shifts the center of the transaction,” Riley said. And that, he said, is good news and bad news.

With BNPL, merchants have been able to reach and bring in entirely new segments of customers while being able to get paid immediately and not having to take on the credit risk. The current view of Buy Now, Pay Later (BNPL) Shah noted that the basics of Buy Now Pay Later are nothing new to PayPal, pointing to its 2008 acquisition of Bill Me Later, which the company went on to rebrand as PayPal Credit. However, he did draw a distinction between how BNPL was used before the pandemic and how it’s evolving now.

Before, he said, it was mostly focused on younger demographics and their interests: “Fashion, electronics, home, a bit of travel. ” Download the complimentary document - Gen Zs Credit Averse? Hold That Thought. First Name (required) Last Name (required) Your Email (required) Company (required) Title (required) Δ
Jul 26, 2022 00:00
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