Buy Now, Pay Later

Examples of business models

Business model During checkout, Upon acceptance Consumers Standard BNPL 1. Customer checks
the customer of the credit complete their with a fee taken on out with Atome
applies for Affirm application, a purchase, while the merchant and at 0% interest,
credit. Affirm shopper is able not yet paying for sometimes on the no admin fee,
performs a ‘soft’ to pay for the the goods – this consumer as well. and splits
credit check. purchase in four can be done later shopping bill into
Affirm settles the equal installments when the consumer 3 easy monthly
full amount with per two weeks. is certain to retain payments.
the merchant and the products. 2. Merchant will
services the loan AfterPay then receive full
directly with the sends payment transaction
customer. instructions to the amount (minus
consumer. They MDr – Merchant
can pay via the Discount rate
consumer portal/ – fees) within
APP or via classical 3 working days.
bank transfer.
Consumers also
have the flexibility
to pause a payment
or convert it to an
instalment plan.

Payment One-time-use Credit or debit card No card needed Cards, SEPA DD Credit card,
instruments virtual card, debit to start instalment debit card, local
card plan. Independent e-wallets, direct
risk scoring. bank debit,
integration with
PSP platforms

Credit check yes yes yes yes yes

Credit application yes yes yes, using local yes No

standards

Late fee 1.5% of purchase USD 8.00 initial fee Dependent on We’re one of the More information
amount, reported and an USD 8.00 country, order only lenders that available upon
to credit bureaus fee for every 7 days value and step of has never charged request
dunning. Starting at a single euro in late
EUr 2,50. fees.

Interest rates APr ranges from 0% Starting at 0% We do not view it No interest for
10% to 30% as interest but a users
depending on plan fee as a % of the
and credit. transaction amount.
The fee is between
2 and 4%.