PAYMENT METHOD PROFILES: BNPL 2
Modern Buy Now, Pay Later providers emerged in the late 2010s as mobile devices and ecommerce boomed globally. 598 The ability for financial technology firms to seamlessly integrate with smart phone and online marketplaces fueled adoption. 599 The COVID-19 pandemic further accelerated adoption, especially with younger consumers. The appeal of interest free options to pay for goods over a variable amount of time was increasingly attractive to a young generation of highly digital shoppers. 600 As market share of Buy Now, Pay Later providers grew and reached a critical mass of billions of dollars in volume through the early 2020s, regulatory scrutiny also increased. 601 Similar to the top of the previous century, transparency of terms and conditions, predatory lending and increasing consumer debt, and general consumer education of young people became more of a focus for policymakers. Global Overview
U.S. Affirm
Sweden Klarna
Australia Afterpay
Germany PayPal
Japan Paidy
Year Founded
2010 603
2015 604
2022 605
2008 606
2012 602
Pay in 3 or 4 Pay in 30 Days Financing Pay in Full 608
Payment Options
Pay in 4 Monthly Installments 607
4 installments over 6 weeks 609
Payment after 30 days Installment Payment 610
Pay in 3, 6 or 12 installments 611
Pay Over Time (£0.11 + 0.99-4.99% + $0.20-0.50) Pay Later (2.60-4.29% + $0.26- 1.13) Pay Now (1.35% + $0.20-0.25) 613 Pay in 3 or 4 (no interest) Pay in 30 Days (no interest) Financing (0-33.99%) Pay in Full (Not Applicable) 617 Australia, Austria, Belgium, Canada, China, Czech Repulic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Hungary, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Spain, Slovenia, Sweden, Switzerland, the U.K., the U.S. 622
Default Merchant Fees *These fees are not representative of all pricing for merchants.
$0.15 + contract with PayPal & management service fee 615
4.19-4.99% + $0.19-0.39 614
$0.13 + contract with Affirm 612
N/A
Payment after 30 days (interest fee) Installment Payment (fixed borrowing rate & effective annual interest rate) 619
Pay in 4 (interest free) Monthly Installments (0-36% APR) 616
Fixed fee due at each payment dependent on total spent 620
Interest-free late fees apply 618
Consumer Fees
Countries Available *list of countries
U.S., Australia, New Zealand, Canada, the U.K. 623
Australia, France, Germany, Italy, Spain, U.K., U.S. 624
U.S., Canada, the U.K. 621
Japan
may not be exhaustive.
Settlement Time
3 Days 625
4 Days 626
3-5 Days 627
3 Days 628
N/A
Table 2.19
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