Historically, unsecured lending offers focused on small to mid-size purchases. Now, new point-of-sale services are available in more expensive categories. Customers are dictating the terms. Most have a credit card with sufficient credit to make these purchases, but they’re attracted by easier, cheaper payment terms. Given the costs of customer acquisition, companies are loath to say ‘no.’
To read the article, see “Buy now, pay later: Five business models to compete,” July 29, 2021.