BNPL works when the customer signs up for a company that acts as the lender and pays for the customer’s behalf. It is also more commonly known as Buy Now Pay Later. The company lays down certain policies according to which the customer can pay it back either in installments or lump-sum amounts.
A product called BNPL Pay for was initiated a while back, which is now assisting real-world borrowers. As of today, it has smooth access to the plethora of assets in the decentralized finance space as DeCeFi.
Whenever it comes to block-chain lending, uncollateralized loans have always caused trouble. BNPL Pay has come up with an innovative protocol design that manages to address these issues by creating a system of decentralized banking interchange. At the same time, these networking systems have been incentivized to execute and contend for total value locked.
BNPL Pay intends on launching its platform in November, after which the users will be able to lend digital assets to any of the nodes and yield sustainable assets. Borrowers can apply for loans from any of the nodes straight from the BNPL Pay app. In return for a portion, stakeholders will be able to substantiate BNPL tokens in a network as security.
The crypto lending market has expanded in the past years. The biggest opportunity, according to BPNL, is servicing the unsecured loan market. Other Defi schemes have overlooked the biggest opportunity in the traditional financial system, which is unsecured loans.