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[...] BNPL has also benefited from the support of major technology players who have invested in this sector, increasing the availability and diversity of offers for consumers. 1.1.2 Types and models of split payment 1.1.2.1 Traditional models of split payment Traditional models of split payment have a long history in the field of consumer credit, well before the digital era (Buchak, 2020)10. These models were mainly used to allow consumers to acquire high-value goods, such as furniture, appliances or vehicles, by spreading payments over several months or years (Berg, 2021)11. [...]
[...] What is buy now pay later (BNPL)? https://www.frenchweb.fr/quest-ce-que-le-buy-now-pay-later-bnpl/437900 Global Banking & Finance. (2023). The Future of Buy Now Pay Later: International Insights. https://www.globalbankingandfinance.com/the-future-of-buy-now-pay-later-international-multi-channel-and-fully-integrated/ Guttman-Kenney, B., Adams, P., Hunt, S., Laibson, D., Stewart, N The semblance of success in nudging consumers to pay down credit card debt. University of Chicago Working Paper. Lecourt, B. (2019). Face au boom des déchets, quelles réponses technologiques ? Les Echos. [...]
[...] Unlike other BNPL services, Affirm offers financing plans that may include interest, but the company is known for not imposing hidden fees or late payment penalties. Consumers seeking increased transparency and more flexible payment options for their major purchases are increasingly turning to Affirm (Meyers, 2019). Building on its experience in online payments, PayPal seized the opportunity of this growing market by launching its own BNPL service, "Pay in as early as 2020. By leveraging its existing vast network of merchants and consumers, PayPal quickly integrated its BNPL service into its offerings, making it accessible to millions of users around the world (Buchak, 2020)." These platforms, although offering similar services, differ in their approaches to the market, particularly in terms of credit conditions, types of partnerships with merchants, and growth strategies (Klarna, 2020). [...]
[...] The conclusions drawn from data analysis may be influenced by these biases. 4.1.2.3 Time and resource constraints The study was also limited by time and resource constraints. More in-depth analyses and additional resources would have been possible with a longer data collection period and additional resources. 4.2.2 Empirical limitations 4.2.2.1 Variability of user behavior User behaviors of BNPL can vary significantly depending on numerous factors such as economic context, cultural differences, and individual preferences, which complicates the establishment of empirically generalizable conclusions. [...]
[...] This flexibility allows consumers to better manage their budget while making purchases that would otherwise be inaccessible in a single payment (Berg, 2021). Digital BNPL models have also expanded their reach by partnering with online and physical retailers, significantly increasing their adoption. Furthermore, these models are often integrated directly into the payment process of e-commerce sites, offering a seamless user experience (Klarna, 2020). This contrasts with traditional models where consumers had to make additional efforts to obtain financing (Meyers, 2019). [...]
