PayPal officially joins the race, page-478

How does Paypal entering BNPL cannibalize their existing business? They get paid everytime a transaction happens through their network - they don't care whether the customer pays in 1 or 4 installments. Am I missing something?

I also think their (very expensive) Honey acquisition is a clear acknowledgement that building a beloved brand and marketing channel are important steps where BNPL providers are still ahead of them, but it's clear that Paypal is taking this seriously and at least willing to throw money at the sector (which is of course no guarantee of success). Having lots of customer data isn't really an argument for Afterpay either - Paypal has that in droves, going back many more years than APT. The main argument for Afterpay I can think of is sheer brand power, they're clearly very beloved by customers (high scores on Trustpilot, NPS, etc.). That doesn't sound like a ton but it's certainly difficult for Paypal (a rather dry payment processing brand) to build that up. Will it be enough for APT to fend them off?