Every single debt is underwritten individually by a originating bank. Within a few days the BNPL provider is expected to buy that debt back once the remittances

Every single debt is underwritten individually by a originating bank. Within a few days the BNPL provider is expected to buy that debt back once the remittances to vendors have been made. The BNPL company then takes on the debt. BNPL makes their money by charging a network fee. AFAIK AfterPay charges about 7% and this is meant to cover the debt charges from the banks and administration fees.