Image: Calcali TechThe next financial crisis may start in your shopping cart
• A growing financial link has emerged between "Buy Now, Pay Later" (BNPL) fintech companies and the private credit market, connecting everyday consumer purchases to global capital markets. • In this system, fintech firms extend credit to American consumers and immediately sell those loans to investment funds rather than holding them on their own balance sheets. • This mechanism creates hidden systemic risks because the stability of this private credit-funded model has not yet been tested during a significant economic slowdown.
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