why banks need to pay attention 

This financing option is fast, convenient, flexible, and democratic. It is especially beneficial to young consumers who are digitally savvy and with limited financial resources (entry-level jobbers or students) or those who do not have a bank account or do not qualify for credit or loans. They feel they do not need to access credit with BNPL; they simply defer payment. Additionally, they are also given the ability to try out a product at no expense at the time of purchase. 

BNPL has numerous advantages for retailers and merchants. Those who included this financing option in their business strategy saw higher sales conversions and larger basket sizes. 41% of global consumers are more likely to buy in a store that offers BNPL and many are already benefiting. As an example, after introducing Klarna, one of the leading BNPL-focused fintech to its store, the UK fashion retailer Hype…