Apple Pay Later and Credit Cards

In this 10-minute video I breakdown the how credit cards work, compare them to Buy Now Pay Later (BNPL) options, and the new Apple Pay Later service.
Whether you're a seasoned technologist, credit user or new to the world of digital payments, this video will provide valuable insights
#fintech #BNPL #ApplePayLater #paymentprocessing
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[@RamBhakt__]

A great way to explain things,
I got know about this while searching for system design resources,,
thanks for your efforts..

[@ByteMonk]

Thank you for the comments, please checkout my system design playlist in the description which has most of the SD basics

[@JahirulIslam-le6ux]

Hello Sir, thanks for this tutorial, it is really useful, I just need to know one thing if you please tell me that will be really great, I do lots of credit card booking transaction for client, in this transaction there is no options like paypal or any other services, but can I use Apple pay later or any other service that doesn't need credit card verification and make the payment in one click, if so can you please tell, thanks a lot

[@tongweiwang9775]

May I ask how the bank (fund provider) benefits from this model?

[@ByteMonk]

The bank or the fund provider benefits from credit card, BNPL, and Apple Pay Later models in several ways. Firstly, they earn interest on the amount borrowed by the customers. The interest rates charged on credit card balances, BNPL plans, and Apple Pay Later purchases are usually higher than traditional loan products, which generates significant revenue for the bank.
Secondly, these financing options often come with additional fees, such as transaction fees, late payment fees, or annual fees, which can also generate revenue for the bank.
Furthermore, by offering these financing options, banks can increase customer loyalty and retention. Customers who use credit cards, BNPL, and Apple Pay Later plans are more likely to stick with the same bank, and may also be more likely to use other financial products offered by the bank.

[@tongweiwang9775]

@@ByteMonk Thanks so much for your reply. But after some research, BNPL normally has no transaction fee or interest. It seems banks or fund providers mainly share some profit from the revenue increase of merchants, which is also shared by the BNPL firms.

[@ByteMonk]

@@tongweiwang9775 You are correct that BNPL services typically do not charge transaction fees or interest to consumers, but they do earn revenue from merchants through various means. One common way is by charging merchants a fee for each transaction made using their BNPL service. This fee is often a percentage of the purchase price, and it is shared between the BNPL firm and the bank or other fund provider.
Another way that BNPL services generate revenue is through marketing partnerships with merchants. In these arrangements, the BNPL firm pays the merchant a fee for promoting their service to customers. This can include offering discounts or other incentives to customers who choose to use the BNPL service when making a purchase.
The revenue model for BNPL services is complex and can vary depending on the specific firm and its partnerships.