Over the past few years, the BNPL (buy now, pay later) financing option has taken online retail shopping by storm. In nearly all sectors, consumers now have a number of options allowing them to pay for goods and services in installments without having to break the bank.
Now, one project is trying to do the same with crypto. Seeing the potential this kind of financing format has when combined with the expanded reach of cryptocurrencies, especially among the unbanked, Uquid has launched its own Payin3 payments platform. We spoke with Uquid CEO Tran Hung about his project and why BNPL is a perfect match for crypto.
How does payin3 work with crypto? How is it different than BNPL with fiat?
Uquid is the first platform to introduce BNPL to crypto, and we’ve done it by integrating Payin3. This program allows shoppers to split their purchases into three installments, and the first installment only has to be paid 30 days after a purchase is made.
The biggest advantage of crypto BNPL is that users don’t have to worry about credit history checks or ruining their credit scores if they are late with their payments. The people that will benefit the most are the unbanked and younger, more crypto-friendly people.
The amount users will be able to borrow will depend on how much crypto they have. Current;y we only support Bitcoin and our own Uquid coin (UQC), but soon we will be adding a whole lot more.
Why did Uquid decide to introduce Payin3?
The world currently has about 1.4 billion adults that are unbanked according to the World Bank (2021 data). These people should also be able to shop online and have access to credit and lending services. By introducing Payin3, we have opened the door to these kinds of services for millions of people.
What are the benefits for merchants and online shops? If they already have Payin3 for fiat, why would they accept crypto as well?
Sellers and merchants are considered with sales. Given the current economic difficulties, BNPL has proven to be an effective way of stimulating sales. Crypto BNPL reaches people that are unable to use even fiat BNPL services. Plus, fiat BNPLs services tend to charge merchants significant transaction fees, and in crypto that isn’t the case. You also have to consider the geographic limitations that exist with fiat BNPL programs. With crypto, that isn’t the case and businesses are able to reach a global clientele.
Why did Uquid start with Bitcoin as its main Payin3 payment method?
Of all cryptocurrencies, Bitcoin is still the most preferred and trusted by many individuals and companies. So it was a bit of a no-brainer to start with Bitcoin and then expand from there.
Given recent events in the crypto market, we are wary of introducing more risky altcoins to our customers and merchants. Our mission is not only to provide our users with convenience, but also to maximize the interests and the safety of our sellers.
What is your outlook on the future of BNPL both with fiat and with crypto? Will crypto Payin3 replace the fiat version?
I really think BNPL in crypto is going to thrive in the not-too-distant future. But I don’t think it is going to replace the fiat version. The crypto market is still quite small and I think they will both benefit each other.
Plus, crypto is still a growing industry. There are a lot of people that see crypto as a store of value, rather than a means of payment and there are issues sometimes with transaction speeds. Also, a lot of people have kept their distance from crypto due to the tax complications it would entail for them.
Recently, there have been a lot of big crypto companies rolling out payment services like Binance Pay and Gate Pay. I think this is going to help BNPL grow because more and more people will start using crypto on a daily basis to make purchases.
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