Andee Tagle

I'd split the user base into two main categories of heavy buy now, pay later users. So there are young people. And then there are people with poor or limited credit history. And the reason for that is because the barrier to entry is a lot lower for buy now, pay later loans than your typical credit card or bank loan. A lot of them have completely interest-free options.

Other ones, it might be a little bit of a sliding scale.

There was a law passed a while ago that limited how aggressively credit card companies could market to clients. college-aged kids. And so the buy-now-pay-later market has really opened up to people over 18 but under 25.

One of the disadvantages is that they're really good at getting you to want to get out another loan. That technology is super specific to your data. They can also use that specific technology to market the things that you like to buy. Those impulse purchases are specific to you. They're specific to your data. That bathing suit that you've gone to 26 times in the past however many months.

And they have a credit limit based on what they know you can spend or what you might be willing to spend.

BNPL companies also offer physical cards that you can take with you into brick and mortar. And they also offer tap to buy options. So even if there isn't an official partnership, you can use buy now, pay later.

The thing about that is they use it and then they like it. And then when they do reach an age where they can get credit cards... They stick to BNPL because they know it and it's easier.

Buy now, pay later loans are exactly what they sound like. They're a form of credit that allows you to buy something now and pay for it later.