Buy now, pay later delinquency rates ‘higher’ than other credit types — CIBI

BORROWINGS via buy now, pay later (BNPL) products have higher delinquency rates compared to other credit types, but loan volumes remain low even as the segment has continued to grow as these bookings are mostly made up of small amounts.

- 

“BNPL basically targets your lower income segments — segments that banks used to kind of avoid because their ability to pay is in question. So, [even] with the lower ticket sizes of the loans, if you're actually targeting those who would even borrow small amounts, it does increase your default risk,’ CIBI Information, Inc. Chief Analytics O