Trading using the BNPL principle
Theoretically, this concept sounds interesting. It is a recipe for an investor to simultaneously flex his capital to buy more varieties of shares and pay later by installment. Likewise, is the
concept of leveraging investment. Having said that, how wise is this approach for an investor? Once an investor borrow to trade, he must remember that trading is never ever predicable. He must be mentally prepared that he may not have a Bullish outcome, and thus has he enough means to return a 100% of what he has purchased even by installment. It is indeed of a great challenge and in no way a mean feat to achieve.
concept of leveraging investment. Having said that, how wise is this approach for an investor? Once an investor borrow to trade, he must remember that trading is never ever predicable. He must be mentally prepared that he may not have a Bullish outcome, and thus has he enough means to return a 100% of what he has purchased even by installment. It is indeed of a great challenge and in no way a mean feat to achieve.
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HopeAlways : Market volatility will tend to pose greater challenges for investors following the BNPL principle.
capper_ : There is evidence of that. Among BNPL users, 31% consider their financial health to be “dire” or “struggling” (versus “managing” and “thriving”). In contrast, of consumers who don’t use BNPL services, just 20% rate their financial health as dire or struggling.
Syuee : Much of BNPL marketing tends to focus on the value to be derived from a purchase and not necessarily on the affordability of a customer to pay back.
Younger consumers are more likely to walk into unsuspecting debt traps, exacerbated by lower levels of financial literacy.
Hence, it is indeed of a great challenge.
Handy_ : Japan is the third largest e-commerce market in the world, and so this is a significant move by PayPal to gain more market share both in the country and the region, specifically in the area of providing deferred payment services as an alternative to credit cards.
Susan Bertolino : Invest in BNPL is risky,but Any investment involves an element of risk
HuatEver OP Syuee : Well said Syuee
HuatEver OP Susan Bertolino : I totally agree with you.
HuatEver OP Handy_ : Let’s watch how the “game” is “played”!in Japan.
HuatLady : Interesting sharing.