BNPL is in fact credit-based, as there has been a large misconception surrounding BNPL, in that it is not based on credit at all. However, BNPL is an interest free form of credit. It is essentially merchant funded credit. In the same way they will pay a fee to allow their customers to use a credit card or a payment platform, they will pay a fee to BNPL platform, to give those who choose to use it, the flexibility to defer payments or pay in instalments. ~ Alex Marsh

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