The Science Behind “Buy Now, Pay Later”

The foundational principles of commerce have existed since a time long before any of us can most likely remember. The basic principle of “You have something I want. What would you like in exchange for it?” is one we take entirely as a given in today’s society. Spending my days focussing on eCommerce (humanity’s latest branch of commerce), I spend a significant amount of time dissecting the smaller details of this base principle. One such construct is the steps of the interaction; from desire to exchange.

Several weeks prior, I met with the head of a venture capital firm who focus largely on African markets. While discussing the differences between the various markets in central and west Africa, the concept of “buy now, pay later” was discussed. This sparked a series of thoughts on the topic and how we can leverage this principle to create a more pleasant purchasing experience for our would-be customers. Continue reading