Burrito Now, Pay Later

tl;dr: Burrito bonds represent finance doing what it does best: unbundling risk, pricing it granularly, and allocating capital more efficiently. BNPL unbundles consumer credit into tradeable assets to let the market decide who should hold the risk. The result is lower borrowing costs, and a credit market that’s more effective than the status quo. Despite skepticism from Volcker and Buffet, financial innovation has been and will continue to be a massive net positive for humanity. I will write a separate, longer piece on why financial engineering is good akshually. For now, I’ll describe why the development of the BNPL securities market will improve the current state of credit and lending. It’s a win-win-win-win-win. We're gonna win so much, you may even get tired of winning. In March 2025, DoorDash and Klarna announced a deal to let consumers pay for restaurant food, groceries and other delivery orders in four equal, interest-free installments, or “at a more convenient time, such as a ... Read full article.