Afterpay

Concerns are growing that the boom in short-term financing that has fuelled apparel sales is saddling a growing number of vulnerable shoppers with debt they can’t pay. But the concept can still benefit brands, lenders and consumers, with a few key changes.

Stripe and Klarna have transformed payments in the west, but fintech providers like PayU, M-Pesa and PhonePE can help drive e-commerce in rapidly growing emerging markets.

Paying for purchases in instalments has quickly become ubiquitous online. But Klarna, Affirm and the other fintech players that dominate the space have loftier goals.

Afterpay can measure partners’ metrics against industry averages, enabling merchants to fine-tune communication strategies and product offerings.

Consumers have flocked to services that allow them to pay for their online orders over a period of weeks, months or even years. Brands hope these plans will encourage customers to spend more — but a looming recession could test the business model.