Buy-now pay-later is one of the hottest trends in fintech, in Asia and worldwide. But there’s just one problem: the business model of BNPL is losing money.
Benjamin Quinlan, founder of consultancy Quinlan & Associates, speaks with DigFin‘s Jame DiBiasio about the quandary BNPL fintechs now find themselves in. From balance sheets to credit risk, Ben breaks down the numbers and shows why the current model doesn’t work – and points out ways BNPL firms can achieve a more durable success.
- 0:00 – Ben Quinlan, Quinlan & Associates
- 1:34 – The threat to buy-now pay-later (BNPL)
- 2:40 – Non-performing loans and funding issues
- 4:11 – What makes BNPL a hot trend
- 6:12 – Drivers of growth
- 7:52 – Issues with balance sheets and merchant acquisition
- 11:02 – Acquiring and analyzing user data
- 13:38 – Breaking down why BNPL firms lose money
- 15:39 – Lots of competition!
- 16:25 – Can the BNPL model change?
- 19:11 – M&A in Asia Pacific’s BNPL industry
- 21:03 – Banks and BNPL
- 22:20 – Regulation
- 25:40 – From BNPL to virtual banking