ESG and BNPL: Whether It's "Buy Now, Pay Later" Or "Buy, Not Pay Later" Makes All the Difference

Affirm Holdings - Addictive BNPL Could Backfire in 2022

SPACTalk: 2022 High Conviction Pair Trade Idea-Why Moneylion Is A Better Choice Than Affirm Holdings

Forensic Analyst

Jason Yap, CFA

Thematic (Sector/Industry)

United kingdom Consumer finance / Thematic (Sector/Industry)

<p>The BNPL industry witnessed unfettered growth in recent years and Apple's latest foray into this space further validates the immense potential of this industry.  Yet, the BNPL industry's rapid growth has far outpaced the development of relevant regulations and risk management protocols and processes and led to market concerns of a debt fuelled spending binge.  Further, certain questionable business practices have recently been placed under the spotlight.  This article examines the BNPL's industry practices versus traditional lenders and its ESG credentials, and explains why the BNPL industry needs to come under greater regulation. </p>

The BNPL industry witnessed unfettered growth in recent years and Apple's latest foray into this space further validates the immense potential of this industry.  Yet, the BNPL industry's rapid growth has far outpaced the development of relevant regulations and risk management protocols and processes and led to market concerns of a debt fuelled spending binge.  Further, certain questionable business practices have recently been placed under the spotlight.  This article examines the BNPL's industry practices versus traditional lenders and its ESG credentials, and explains why the BNPL industry needs to come under greater regulation. 

BNPL Industry Through an ESG Lens