There is no question that the buy now, pay later (BNPL) or pay-over-time model holds significant appeal for retailers. But just as they must investigate many issues when deciding whether BNPL is the right solution for them, merchants must determine whether to launch such a program in partnership with a bank that has its own BNPL product and program or ally with a fintech.
Making an informed decision means understanding the difference between the two types of partners, and the more retailers know about what banks and fintechs bring to the table for BNPL, the greater the likelihood their program will meet their needs and the needs of their customers. When it comes to BNPL programs and products, the array of options available to retailers tops the list of key differentiation points between banks and fintechs. Another differentiator centers on BNPL parameters, such as terms and rates as well as loan amounts.
Read on for a deep dive into these critical issues.