The comparisons of buy now pay later food deliveries to the subprime mortgage crisis (with plenty of Big Short memes) that’s making the rounds on X is totally off the mark. BNPL companies have found a solution for the 20%+ interest that low credit score consumers pay. They’re pretty good at assessing creditworthiness on a purchase by purchase basis, and even if they do get stuck with bad debt, it’s low stakes, and they can get it off their books pretty quickly. It seems obvious to me that the trend is towards micro payments and granular underwriting.

DoorDash and Klarna have signed a deal where customers can choose to pay for food deliveries in  interest-free installments or deferred options aligned with payday schedules.

More Perfect Union

The comparisons of buy now pay later food deliveries to the subprime mortgage crisis (with plenty of Big Short memes) that’s making the rounds on X is totally off the mark. BNPL companies have found a solution for the 20%+ interest that low credit score consumers pay. They’re pretty good at assessing creditworthiness on a purchase by purchase basis, and even if they do get stuck with bad debt, it’s low stakes, and they can get it off their books pretty quickly. It seems obvious to me that the trend is towards micro payments and granular underwriting. 

https://x.com/moreperfectus/status/1902740914583261336?s=46