The buy now, pay later (BNPL) model has gained significant attention in recent years, particularly among younger adults. However, this concept is not limited to buying the latest fashion trends or high-end gadgets. A growing number of startups are exploring alternative uses for BNPL, aiming to make it more accessible and relevant to everyday life.
Qomodo: Revolutionizing Digital Payments
Qomodo, a Milan-based startup, has announced a €34.5 million ($36.9 million) pre-seed round that includes €4.5 million in equity and €30 million in debt financing. The company provides digital payments and BNPL services to physical retailers, such as vets, auto shops, and dentists, in Italy. These types of businesses often struggle with large and unexpected payments from customers.
Gianluca Cocco’s Vision
Qomodo’s co-founder and CEO, Gianluca Cocco, explained that the company aimed to give these retailers the structure needed to process digital payments efficiently. "We are digitizing and making a legacy process to basically get a loan without interest using the technique of BNPL," he said. "But we are actually giving a service. We are allowing families to afford expenses that are unexpected."
The Importance of BNPL
Using BNPL for non-consumer goods purchases can help prevent individuals from falling into debt or having to rely on high-interest loan providers. Cocco’s approach highlights the potential benefits of BNPL in everyday life, particularly when dealing with unexpected expenses.
- Preventing Debt: By breaking down large payments into manageable installments, consumers can avoid taking on unnecessary debt.
- Reducing Financial Burden: BNPL services like Qomodo’s allow families to afford essential expenses without having to sacrifice other financial priorities.
- Promoting Financial Responsibility: Encouraging responsible spending habits and budgeting practices is essential for individuals seeking to avoid financial difficulties.
The Expanding BNPL Landscape
Several startups are building on the concept of BNPL, focusing on different areas such as healthcare and inventory management. Some notable examples include:
Walnut: Democratizing Healthcare
Walnut is a company that offers digital payment services for medical providers, allowing them to offer interest-free loans to patients. By making healthcare more affordable, Walnut aims to reduce the financial burden on individuals.
Inventory Management with BNPL
Companies like Qomodo are exploring ways to integrate BNPL into inventory management systems. This can help small businesses and entrepreneurs manage cash flow more effectively, reducing the need for high-interest loans or overdrafts.
Industry Trends
The growing interest in alternative uses of BNPL is driven by several factors:
- Increasing Demand: Consumers are seeking more flexible payment options that fit their changing financial needs.
- Technological Advancements: Improvements in digital payments and mobile banking have made it easier for companies to integrate BNPL into their services.
- Regulatory Support: Governments are starting to recognize the benefits of BNPL, with some implementing regulations to ensure responsible lending practices.
Conclusion
The evolution of the BNPL model extends beyond consumer goods. Startups like Qomodo and Walnut are pioneering new applications for this technology, addressing real-world needs and challenges. As the industry continues to grow and mature, we can expect even more innovative solutions to emerge, making BNPL a staple in everyday life.
Sources:
- Qomodo Raises €34.5 Million Pre-Seed Round
- Walnut Seeks to Democratize Healthcare with Interest-Free Loans