BNPL in USA: Can This Plan Add Up?, page-8

So it's a big fat cheap loan which delivers half the revenue of repayments and OVT does not have to put up any capital in advance to cover credit losses, unlike any other BNPL loans and that's because the lender wears all the losses? Unlikely, it looks as though they forget to include that bit?

Preferential Access to Low-Cost Funding

A core benefit of the BNPLPay partnership is access to competitively priced debt capital that is markedly cheaper than traditional funding channels. BNPLPay’s decentralized lending model allows Ovanti to draw on a pool of stablecoin-backed lenders at interest rates around several percentage points lower than those charged by banks or other non-crypto financiers (at least 30 to 40% cheaper than traditional finance funding sources).

This significant reduction in interest expense directly improves Ovanti’s cost of funds and is expected to enhance profit margins on its BNPL offerings, as less revenue will be consumed by financing costs.

Crucially, no first-loss capital is required from Ovanti to utilise the BNPLPay Protocol’sfunding. In typical traditional lending facilities or securitised funding arrangements, BNPL providers must contribute a “first-loss” reserve or equity buffer to cover initial credit defaults, which ties up capital and adds risk to the borrower. BNPLPay Protocol’s innovative design eliminates this requirement: independent stakeholders within the decentralized network provide the first-loss collateral, meaning Ovanti does not need to set aside its own capital to cover loan defaults.