Download This PaperBuy 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: 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
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