Buy now, pay later. What’s the balcony?

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Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech.

Slope, which offers companies an easy way to offer buy-now, pay-later services (buy now, pay later, or, for those intimate with BNPL), has had an intense six months.

This is not a huge surprise, as the size of the buy now pay later market was valued at $16 billion in 2021 and is expected to grow nearly sixfold by 2029.

Its API can approve BNPL transactions in seconds, and its retail clients can offer customers the benefit of paying after purchase, either in cash or in installments.

Already at checkout, customers choose the payment terms that work best.

Slope manages the loan, underwriting and any debt collection and will pay the company once the product or service is shipped.

Slope grew dramatically in its six months of operation (121% month-over-month) and registered enough enterprise customers to grow more than 20x in the quarter. They already operate with 2500 businesses in the USA and Mexico.

Slope is one of the apparent tips of this iceberg that is the BNPL business. But what is the difference between our well-known credit cards, so characteristic of retail in Brazil? Well, some.

The first is that the purchase is benefited by the system already at checkout, in seconds, without the need to request prior profile approval for payment to be made later.

The second is that the consumer does not need to be a customer of the store or any other financial institution to use the system. This contributes to the inclusion of the unbanked and increases the possible customer base for retail.

The third and very advantageous one is that no interest will be charged if payment is made on the agreed date.

Large financial groups such as credit cards and banks are strongly adhering to the system.

Last month, PayPal spent $2.7 billion on Japan’s Paidy in an effort to capture market share in Asia. In early August, Square announced plans to acquire Afterpay in a $29 billion deal. Even Apple is said to be getting in on the BNPL game as well.

The BNPL segment is promoting an even greater increase than what already exists between traditional financial institutions, payment means operators and leading retail companies.

In Brazil, it is still a market at an early stage of development. But, certainly, it should expand as an alternative to the traditional credit card. Notably among the public with little access to the financial world.

Original text at Innovation Insider.

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