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by finfrastrcuture
1185 days ago
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I'm by no means a BNPL advocate, but this isn't true. BNPL providers have proliferated because they offer the merchant a new avenue to win new businesses (aka get consumers who wouldn't buy to buy) and in exchange receive a heft % commission of the purchase, much higher than card interchange. They also are fighting to reposition themselves as marketplaces in their own right, and earn associated merchant marketing fees, rather than be just a button a check out. According to the BNPL industry, fees and interest make up a small portion of their overall revenues. Whether that's wholly accurate is another story. In sum, they would indeed exist. Its more a question of how large and profitable they would be. Check out Klarna's financial reporting to get a sense of this: https://www.klarna.com/international/press/klarna-reports-fo... |
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It may also be irrelevant; I'm more interested in their forward-looking forecasts than their current revenue sources.