You are right – how BNPL washes out for CCP remains to be seen....

You are right – how BNPL washes out for CCP remains to be seen.

Buying debt portfolios (PDLs) and collecting on them is the core aspect of CCP's business. In terms of skillsets, analytics and demographics, there is a near-non-existing dividing line between collecting on purchased debt (PDLs), third-party debt as a service, and collecting on CCP's own loan book (WalletWizard). The last mentioned requires advertising, which is a point of difference. CCP has a long history of collecting as a service on a contingency basis, but it has kept that business small. Acquiring NCML years ago and Baycorp recently has seen that service grow, and Management may grow it further to diversify CCP's income streams.

Further peripheral businesses could be credit reporting, invoice factoring and BNPL. Intrum in Europe is into the last-mentioned two, and conceptually they are similar. A cash-light and people-light online vendor may simply want to get the cash, and leave the likes of Intrum to offer payment terms, and collect the debt. At https://www.intrum.com/about-us/business-solutions/financial-services/ you can read, “With our service that has been developed for e-commerce companies, our clients are paid immediately, while consumers receive invoices or the opportunity to make installment payments.”

To get into BNPL, or to treat them as clients may to a degree be mutually exclusive in the sense that if CCP buys PDLs from BNPL players, it may be prudent not to compete with them.