> But there is a large population--the unbanked--that lacks access to credit cards. For that population, the choice is not between credit card and BNPL, but BNPL and cash.
Which is an indication that the status quo will not last.
The median person who cannot get a bank account and a credit card, is in that state due to a history of either fraud or nonpayment.
Sooner or later, that preponderance of risk will catch up to BNPL and it will either become less accessible, like credit cards, or it will become more like services that already service that population segment, like check cashing locations and payday loans.
Them having better technology and granularity like you say won't save them. At best it can delay the inevitable.
Which is an indication that the status quo will not last.
The median person who cannot get a bank account and a credit card, is in that state due to a history of either fraud or nonpayment.
Sooner or later, that preponderance of risk will catch up to BNPL and it will either become less accessible, like credit cards, or it will become more like services that already service that population segment, like check cashing locations and payday loans.
Them having better technology and granularity like you say won't save them. At best it can delay the inevitable.