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BNPL business model is dying fast. 1st. BNPL providers are reporting much higher bad debts than credit cards. Largely, this is down to having a high thin credit user base. For every $1bn of processing volume, BNPLs write down $19.2m of bad debt - compare that to the $270k recorded by credit cards, according to Fraugster. I guess everyone really thought that “this is not lending, but a payment option.” 2nd. What works with 1-2% ftp, dies at 6-8%. Cost of funds is going up month on month. Explain how the business model works with these two points…. I am waiting…
BNPL business model is dying fast. 1st. BNPL providers are reporting much higher bad debts than credit cards. Largely, this is down to having a high thin credit user base. For every $1bn of processing volume, BNPLs write down $19.2m of bad debt - compare that to the $270k recorded by credit cards, according to Fraugster. I guess everyone really thought that “this is not lending, but a payment option.” 2nd. What works with 1-2% ftp, dies at 6-8%. Cost of funds is going up month on month. Explain how the business model works with these two points…. I am waiting…