BNPL makes money from both sellers and consumers. In case of sellers, they pay BNPL a fee ranging between 2% and 8% of the purchasing amount if the customer uses the BNPL facility.
BNPL players also make money by solidifying their positions through various marketing or promotional spend given that the seller is able to increase conversion or traffic. BNPL players making money from customers by charging an interest ranging between 10% and 30% based on their credit score, repayment tenure, etc. As long as the amount is repaid on time, no interest is charged. However, there are customers who may not be able to repay the amount by the due date, on which a late fee is charged. The payment of late fee adds to the BNPL company’s revenue.