Teller launches “Buy Now, Pay Later” NFT service
Imagine purchasing a blue-chip NFT like Bored Ape and having the option to spread the payment across several months. While the idea of a scheduled periodic payment is popular in traditional finance, the crypto industry is slowly getting a hang of things.
Teller, a decentralized finance (DeFi) lender, has introduced a new service that will allow collectors to buy NFTs and pay later. Dubbed “Ape Now, Pay Later,” the offering is built on Ethereum Layer 2 network Polygon. Intending buyers will be required to offset a mandatory 25% to 50% of the NFT value. The balance can be spread into installments.
According to Ryan Berkun, the founder and CEO of Teller, the service will give NFT enthusiasts access to affordable financing to acquire some of the priciest NFTs like Bored Apes, Mutant Apes, Doodles, Azuki, Meebits, and Adidas Originals: Into the Metaverse.
Teller’s new service is quite different from traditional financial models in its funding style. As already mentioned, a user who wishes to use the service needs to make a down payment before any additional funds are released. The borrower is also required to specify the asset he wishes to purchase via the Teller platform.
The company then proceeds to connect the borrower with a lender that will fund the purchase. To prevent fraudulent actions, the said NFT is held in escrow until the borrower completely repays the debt. On the flip side, lenders can earn as much as 30% annually through the financing scheme.
The launch comes at a time when the general crypto market is struggling with bearish sentiments. Bitcoin, Ethereum, and other cryptocurrencies have collectively lost over $400 billion of their value in the last 30 days.
The NFT market has also been affected by the market crash, with the prices of several top NFTs plunging by over 40%.