In today’s fast-paced financial ecosystem, flexibility and accessibility are paramount. Only a select few have enjoyed the privilege of liquidity in real-world assets for far too long. We are excited to announce:
A first of its kind for RWA – “Buy Now Pay Later” (BNPL) is coming on the Polytrade Marketplace. Facilitated by Polytrade in partnership with Unlockd, it is designed to bring a new level of financial flexibility to our users.
The global BNPL market is projected to reach $167.58 billion by 2032, growing at a compound annual growth rate (CAGR) of 20.7% according to a study. Buy Now, Pay Later model which is tailored for high-value asset transactions enables users to secure their desired assets by paying a fraction of the total cost upfront, with the balance spread over manageable installments.
This RWA Buy Now Pay Later solution on the Polytrade marketplace lowers the entry barrier for high-value investment and allows users to purchase real-world assets, including Gold, Diamonds, Trading Cards, and more by paying only 50% upfront.
What does BNPL Mean for RWAs?
Buy Now, Pay Later for RWAs Enables more investors to participate in the market by lowering the initial financial barrier. It helps investors manage their liquidity more effectively by spreading out the payment over time and allows investors to leverage their capital, potentially enabling them to invest in multiple assets simultaneously.
How does RWA Buy Now Pay Later work?
Alex, a user wants to invest in diamonds as an asset but prefers not to tie up too much capital upfront. Instead, he looks for a flexible payment option to manage his cash flow better.
Process:
Browsing and Selection:
- Alex logs into the Polytrade marketplace and navigates to the section offering precious metals.
- He selects a diamond asset valued at $2,000.
Choosing BNPL:
- At checkout, Alex opts for the BNPL payment method.
- He pays $1,000 upfront, securing the diamond.
Open-Ended Loan:
- The remaining $1,000 becomes an open-ended loan through Unlockd.
- Alex’s diamond asset serves as collateral, securely held in their Unlockd Account.
- There are no fixed repayment schedules or predetermined installments.
Flexible Repayment:
- Alex can repay the loan at his convenience, as long as they maintain a healthy loan-to-value ratio.
- Unlockd continuously monitors the loan’s health factor.
- Alex may choose to make periodic payments or repay in lump sums.
- If the health factor drops below a certain threshold, Alex might need to add more collateral or repay part of the loan to maintain a good standing.
In short:
- Initial Payment: Buyers pay 50% of the asset’s price upfront.
- Deferred Payment: The remaining 50%, in the form of an Unlockd loan, is paid over time, making it easier for buyers to invest in RWAs without needing the full amount immediately.
[Note: Numbers are only suggestive in nature]
💡 Did you know? BNPL is most favored among millennials, with 40% of participants aged between 25-34 years. Popular BNPL providers like Klarna, PayPal, and Afterpay in web2 have taken the world by storm.
Bid now, pay later vs buy now, pay later
Buy Now, Pay Later is a financial arrangement where consumers can purchase items immediately and pay for them over time in installments. This option is typically available at the point of sale.
Commonly used in retail and e-commerce, BNPL allows consumers to buy products (e.g., electronics, clothing, etc.) and spread the cost over several weeks or months without having to pay the full amount upfront.
Key Features:
- Immediate purchase with deferred payments.
- Interests commonly remain low, and they do not depend on repayments – but on the utilization rate of the liquidity.
Bid Now, Pay Later is a variation of the BNPL concept tailored for auction or bidding platforms, where participants can place bids on items and pay for them later if they win the auction.
Used in marketplaces where assets, collectibles, or other items are auctioned, allowing participants to bid without needing the full amount upfront. The payment is made later if the bid is successful.
Key Features:
- Allows bidding on items with the promise to pay later if the bid is successful.
- Lowers immediate financial barriers.
- Often involves a commitment to pay the bid amount over time if the auction is won.
| Buy Now, Pay Later | Bid Now, Pay Later |
| Purchase real-world assets directly from the marketplace. | Participate in auctions for real-world assets such as gold, luxury items, or collectibles. |
| Pay a portion of the price upfront (e.g., 50% for diamond) and the remaining amount over time. | Place bids without needing the full amount immediately. |
| Ideal for fixed-price items rather than auctioned assets. | If you win the auction, you pay the winning bid amount over time as an Unlockd loan. |
What’s Ahead?
With the help of Unlockd, we will facilitate the safest, most secure, and cost-effective way to borrow against tokenized RWAs and financial assets with instant loans, as well as risk-free, auto-compounding yield directly in USDC for lenders.
About Unlockd
Unlockd is the first permissionless protocol offering instant loans backed by real-world assets (RWAs). Our AI-driven platform provides dynamic Loan-To-Value ratios and open-ended loans through an efficient Peer-To-Pool model. Unlockd’s unique features include full asset custody for users, multi-asset collateral bundling, and support for diverse tokenized assets.
Currently on Ethereum and Polygon and expanding to other networks, Unlockd aims to democratize RWA liquidity, making previously exclusive financial opportunities accessible to all.