A popular online buying option is entering the crypto market.
Many companies offer the buy now, pay later option to buy your items and pay for them later, typically offering little to no interest.
Decentralized lending protocol Teller, which is based on the Polygon platform, is offering the opportunity to make a down payment and take out loans on non-fungible tokens (NFTs) and pay them off over time, according to a report from Decrypt.
An NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, real estate, music, or videos. With this new option, if you seek to purchase a NFT, you have to put 25% of the total price down up front and then after that you can pay in installments, explains a report in Bloomberg.
The founder and CEO of Teller Ryan Berkun said the service provides NFT enthusiasts with access to affordable financing to buy some of the priciest NFTs like Bored Ape, Mutant Ape, Adidas Originals: Into the Metaverse, Doodles, Meebits, and Azuki.
With most buy now, pay later buying options, the loan you are using is with the company. But with the NFT and cryptocurrencies it is a bit different. It is an individual to individual transaction rather than individual to company. If you are looking to purchase a NFT in installments, there will have to be a lender willing to agree to lend the NFT, so the loan would essentially be with the lender of the NFT and not a major company.
“Buying NFTs is one of the core things Web3 consumers want to do right now,” Berkum told Decrypt. “Buy now, pay later is a no-brainer.”
With the volatility of the NFT and cryptocurrency market, many people are skeptical. If NFT collections see a fall in value, buyers may choose to stop making payments on the loan and could cause many problems.