Hatty Bell
Hatty Bell Community Manager at

What does it mean for businesses as more BNPL solutions come up?

I read the following recently "CommBank's buy now, pay later service will allow eligible customers to make purchases between A$100 (US$77) and A$1000 (US$770) and repay the money in four interest-free fortnightly instalments."

https://www.theceomagazine.com/business/finance/buy-now-pay-later-cba/

With providers left, right and centre offering BNPL solutions for every need and industry.. what does this mean for us? Is it a good thing, a bad thing? Is there anything to watch out for?

Top voted answer
Yee Trinh

Yee Trinh, Cofounder at

SavvySME's Premium Business is a subscription based product.. which is essentially what BNPL solutions are. Being able to take up products/services immediately and allowing customers to pay across a period of time. As such, we haven't needed to use any BNPL solutions. 

Ultimately, BNPL solutions profit off businesses who employ the solution by taking a percentage of sales transacted. I can only imagine the more BNPL solutions there are, the larger the competition and thus, the lower the commission percentages for businesses. 

I can only see upside? Would be interested to hear from those well-versed in this space and businesses who employ these payment solutions. 

 

Hatty Bell

Hatty Bell, Community Manager at

Thanks @Yee Trinh . Do you think we'll start to see more and more BNPL solutions coming through in the next few years?

Yee Trinh

Yee Trinh, Cofounder at

There are a fair few now, including options for various niches such as trades work. Good to see it pop up in the trades industry where unfavourable payment terms and late payments can be a huge hit on cashflow. 

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