3. The interest and credit check rebellion. BNPL providers have done an incredible job positioning their products to consumers who want an alternative to high-interest credit cards. In fact, research has shown that 37% of consumers choose BNPL specifically to avoid paying interest—a direct hit to the credit card industry. Another reason consumers give for choosing BNPL options is avoiding a hard credit check, either because they have a thin credit history or don’t want to take a hit on their score.
% of respondents who use BNPL for the following reasons:
https://www.fool.com/the-ascent/research/buy-now-pay-later-statistics/
4. The drive for financial inclusion. Financial inclusion is a hot topic for many reasons, the primary one being that the vast number of underbanked or unbanked across the globe are losing out on financial opportunities because they don’t have a traditional credit score. BNPL providers, who do not rely on traditional credit scores and often use alternative data to provide credit decisions, are in a unique position where they are able to drive financial inclusion and in turn help their customers achieve financial and aspirational goals.
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