The buy now later (BNPL) Is a big service that allows shoppers to buy products online and let them pay in installments with nominal or no fee. This service was provided because of the pandemic issue and how it accelerated e-commerce growth around the world where the buy now and pay later service has become more prominent.
These service has some key players in the growth of it which are (Affirm, AfterPay, Klarna, and Quadpay).
For a while, credit card companies have been filling up these spaces to help people meet up their needs but in the long run, they also rely on exorbitant fees, leading people to debt which is now properly organized because the pandemic had a lot of people jobless.
In the survey carried out in 2020 by U.S consumers on why some of them use the BNPL service, a lot of them stated their different reasons. About 39% of the correspondent said that they prefer using the BNPL service because of the interest rate on credit cards which they want to avoid, 16.3% also said that they don’t like the use of credit cards and 14% said their credit card was used up.
How Does these platforms assess credit risk.
Recently the Nigerian digital bank carbon introduced Carbon zero. This product helps customers buy devices and pay in installments till their ability to pay up with a zero percent interest rate.
This doesn’t mean that an amount won’t be paid already for the good, a certain amount of the goods would be paid already for the customers to carry the goods and they can pay up later installmentaly.
With the experience and the track records of providing loans to Nigerian citizens, carbon has seen that they can be in a good position to enter the buy now, pay later market with carbon zero.