"Buy Now Pay Later", But For Food?

Olivia Song

December

2021

Buy Now, Pay Later (BNPL) is quickly becoming a force to be reckoned with in almost every industry.

The innovative financing method allows shoppers to buy whatever they want now, and pay for it later across 0% interest installments. This makes it a popular payment option among young consumers who want the flexibility of installment payments without being subjected to high-interest rates.

The BNPL payment method is typically used to pay for expenses that may be too expensive to pay in one go, such as branded goods, electronic devices, and even insurance bills. But pretty soon, the BNPL model may even be extended to food delivery services, as shown by Bangladesh-based digital services platform Pathao.

Founded in 2015, Pathao claims to be Bangladesh’s largest digital services platform, with a network of over 8 million users, 300,000 drivers and delivery agents, 30,000 merchants, and 10,000 restaurants.

The newly launched BNPL service will be able to benefit the country’s young consumers, most of whom do not own credit cards. Selected users will be able to experience the pay-later product on Pathao’s food delivery platform, Pathao Food. The company also has plans to expand the BNPL service to its other platforms, which may include ride-sharing, taxi-on-demand, logistics services, and more.

The BNPL service comes with an initial spending limit of 2,000 Taka (RM99). Users will have to pay the full amount owed within 30 days at the end of a 15-day spending period or receive a late charge of 200 Taka (RM9.9). But don’t worry because Pathao will be sending out regular reminders so customers won’t ever forget a repayment date!