Regulators and consumer groups aren't fans of buy now, pay later, but many people-particularly young people-are increasingly using the service, according to new research from Cornerstone Advisors. The trend is weighing on banks, leading to declines in credit card volumes and interchange revenues while threatening to curb loan growth and displace deposits. BNPL isn't going away, so banks should incorporate it into their offerings or offer competitive products before it's too late, this article warns.
How sustainable do you think the BNPL model is? Has your institution considered moving into the space? If so, what sort of technology or data challenges do you foresee? Finally, how do you weigh the tradeoffs between competing and collaborating with BNPL providers?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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