How are businesses and consumers being influenced and
affected?
While many people are still unaware of the buy-now-pay-later
industry or how it works, the prevalence in the economy is going
from strength to strength.
The premise of these buy-now-pay-later arrangements allows
consumers to obtain goods/services immediately and pay for them
over time. Predominantly the industry makes its money from two
sources: merchant fees, and late fees.
It could be described as a modern-day layby service; however,
unlike that nostalgic time spent as a teenager waiting for paydays
to roll around before rolling up to the layby counter cash in hand,
the buy-now-pay-later options are automated, linked to debit/credit
cards, structured as short term contracts or as a line of
credit.
