How do buy now pay later options help the business at all?

Question

I mean cmon, you’re literally delaying payment for a long time. How does that benefit any business?

In: 29

Answer 1

Nobody is mentioning but usually there is a financing company involved who pays the business an amount the business is comfortable receiving, usually less than the “sticker price” and they get the upside.

Example – if the thing has sticker price of $100, the business says “our cost is $30, we’ll
Be happy to get paid $90, financing company essentially makes a loan where the customer/buyer is the “borrower” who has to pay back the price + interest at a super high rate (so $100+,) but only pays $90 to the store so they get even more upside.