Buy Now Pay Later For Impact in Southeast Asia

April 22, 2021

Scott Krivokopich (Managing Partner at 1982 Ventures) was invited to deliver a presentation to impact and institutional credit investors on what makes Buy Now Pay Later (BNPL) businesses attractive for investment. He delivered insights on why these businesses have been growing so rapidly on a global level, provides a sustainable alternative to debt traps and predatory micro loans and why BNPL business models are so profitable.

Key highlights of the presentation:

  • Differences between BNPL and other point-of-sale lending
  • The rise of BNPL as a business model
  • What makes a successful BNPL business and what to watch out for
  • Potential concerns VCs may face
  • How equity and credit institutions should work together

Defining the BNPL model:

  • Instant approval
  • No interest
  • No fees
  • 3-4 Equal installments
  • 1st payment due at checkout
  • Next payments due within 2 months
  • Merchant pays discount

Why it works:


  • B2B2C model: Merchants are aligned, leads are qualified (ready to purchase)
  • Loyalty: good customers come back, bad customers abandoned


  • Skin in the game: 25-30% payment up front reduces economics of fraudsters
  • Selection bias: Merchant selection drives consumer profile
  • Alignment: dis-incentive for BNPL to underwrite bad customers


  • Borrower connection: Borrowers onboard, repay, see new offers all in one app
  • Alignment: BNPL’s make more with early repayments
  • Network: Value of credit history is visible to consumers

Balance Sheet

  • High Velocity: Book turns over every 30 days, Asset efficient with fast feedback loops
  • BNPL product features result in strong credit performance, shorter life = less risk

1982 Ventures invests in seed stage startups and aims to work with founders at the earliest stages in order to ensure their companies are setup for success.  

We encourage great founders in Southeast Asia launching fintech startups to reach out as early as possible.