Whether it’s Buy Now Pay Later (BNPL), prepaid or lay-by, customers are looking for alternative ways to pay for their purchases. That has seen the emergence of a new class of company currently beloved by investors (and many consumers), and in Australia best exemplified by Afterpay (although at least one analyst firm has a target price for Zip double its current market value based on a report we read today.)

Where the costs of credit cards are too high, newer lending methods are becoming increasingly popular especially among young adults in their 20s and 30s. However, high annual percentage rate (APR) fees on BNPL lending is becoming a concern for regulators as they work to manage or even cap these fees. 

The small business lender Bloom offers revenue-based financing, providing customers with instant funding of up to €300,000. The finance requires one flat fee and is repaid using a percentage of daily credit and debit card sales. 

In today’s minicast, James Hickson, its founder, and CEO  speaks to Which-50’s Editor-in-chief Andrew Birmingham about the concerns regulators are likely to have around BNPL market and some of the actions that have already been taken in some markets.

LinkedIn
Previous post

Nine says it has isolated the impact of the cyber attack that started on Sunday

Next post

It’s Time to Level up Your Contact Centre With Gamification