Capital One bans buy now, pay later transactions on its credit cards - Business Insider

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Capital One is likely aiming to reduce financial risk and fend off overall BNPL competition with its recent ban

amid the pandemic. Banning BNPL credit card purchases could be a way for Capital One to prevent these outcomes, especially as the card issuer works toward boosting card spending and limiting its own risk amid its pandemic recovery.

And because installment lending is perceived as a credit card alternative, limiting ties could draw customers back to their credit cards. Since issuers like Capital One use interest as a revenue generator, enabling customers to make installment payments from interest-free competitors could cut into that flow.

, for example—introducing BNPL offerings, Capital One might venture out to introduce an installment lending offering for its own card members.Join other Insider Intelligence clients who receive this Briefing, along with other Payments & Commerce forecasts, briefings, charts, and research reports to their inboxes each day.

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this is terrible news

They gonna end up adopting this back. Thats where the whole shit is gonna be now. BNPL w way less interest than credit cards for most transactions

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