Buy Now, Pay Later

25 Pages Posted: 29 Apr 2022

Date Written: February 2, 2022

Abstract

This paper examines the strengths, opportunities, and challenges presented by the Buy Now Pay Later (BNPL) product/service from the perspective of the consumer, service providers, investors, and regulators. We present a microeconomic model of BNPL consumers and firms. The model and simulation to the model highlight the strength of the BNPL product. In its simplest form, the deferred payment of consumer purchase, the product is robust and attractive to all stakeholders.

Keywords: POS financing, BNPL, Regulatory arbitrage, BNPL Model, Financial modelling, Simulation, Fintech

JEL Classification: G5, D1

Suggested Citation

Pani, Sudhanshu Sekhar, Buy Now, Pay Later (February 2, 2022). Available at SSRN: https://ssrn.com/abstract=4085867 or http://dx.doi.org/10.2139/ssrn.4085867

Sudhanshu Sekhar Pani (Contact Author)

School of Business Management, NMIMS ( email )

V. L. Mehta Road,
Vile Parle (W),
Mumbai, 400 056
India

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