🧘 flexible loan sharks🦈
Good idea for a newsletter! I have seen these everywhere too but never thought much about it...
I'd seen these pay-later offers and been idly curious about them--thanks for writing such a succinct and interesting post about them!
Thank you Tatum! TBH I don't 100% understand the regulatory guardrails, but feel like I am figuring it out.
From a reader: It's worth noting that Canada has plenty of countries to learn from: this payment model started in the developing world, and in China more than half of all consumers use it (https://technode.com/2020/03/31/tencent-launches-buy-now-pay-later-credit-feature-in-wechat/).
China is moving to cap this quick-growing industry, which is one of the biggest reasons why ant, the market leader, got slapped down recently (https://www.bloomberg.com/news/articles/2020-09-07/china-said-to-plan-caps-on-ant-s-lending-rates-to-control-risk). A 15.4% interest rate would severely dampen activity in this sector, if it was uniformly enforced.
Good idea for a newsletter! I have seen these everywhere too but never thought much about it...
I'd seen these pay-later offers and been idly curious about them--thanks for writing such a succinct and interesting post about them!
Thank you Tatum! TBH I don't 100% understand the regulatory guardrails, but feel like I am figuring it out.
From a reader: It's worth noting that Canada has plenty of countries to learn from: this payment model started in the developing world, and in China more than half of all consumers use it (https://technode.com/2020/03/31/tencent-launches-buy-now-pay-later-credit-feature-in-wechat/).
China is moving to cap this quick-growing industry, which is one of the biggest reasons why ant, the market leader, got slapped down recently (https://www.bloomberg.com/news/articles/2020-09-07/china-said-to-plan-caps-on-ant-s-lending-rates-to-control-risk). A 15.4% interest rate would severely dampen activity in this sector, if it was uniformly enforced.