Pay Later’s Shifting Fee Structure Means Merchants Push Back, Consumers Pay Up

Westfield Bank | Buy Now, Pay Later

What you need to know about Buy Now, Pay Later financing You’ve likely made an online purchase recently and were given the option to finance it over a period of time. This is a short-term financing option known as “Buy Now, Pay Later” or BNPL. If you’re tight on cash, BNPL can help buy you time as you’re able to pay for the purchase over a series of interest-free installments administered by a third-party company. While at times helpful, unfortu…

Pay Later’s Shifting Fee Structure Means Merchants Push Back, Consumers Pay Up

The pay later revolution has reshaped consumer credit by offering shoppers the allure of instant gratification with the added value of deferred payments. But its business model is quietly shifting, with shoppers footing part of the bill. When the industry first emerged more than two decades ago, it relied largely on fees that banks and FinTech firms charged to merchants that accepted the payment method. Retailers were willing to suck up those co…