Layaway 2.0: Take home now, pay later with no interest fees

You’ve seen the offers, online and in stores: pay now, or pay later in four easy installments. Our research finds that this innovation, point-of-sale financing, is growing much faster than traditional unsecured lending. The new services are diverting some $8 to $10 billion annually from banks’ revenues.

Point-of-sale financing is growing faster than other unsecured lending—a trend likely to continue.

To read the article, see “Buy now, pay later: Five business models to compete,” July 29, 2021.