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Buy Now, Pay Later (BNPL)
Addressing our mostly Frequently Asked Questions
We created our BNPL feature to unlock greater flexibility and liquidity for our users when buying NFTs on Hyperspace.
BNPL terms vary between different collections in terms of payback period (7-day or 14-day), down payment, and interest amount. Collections with higher volume and liquidity will generally have more favorable BNPL terms (i.e. lower down payments).
On any supporting collection, you will see an option (typically in green) to buy an NFT for a % of the listing price. When you make the first payment, the NFT will move into your wallet (unless noted otherwise) but it will not be fully yours until you make the second payment to pay the remainder that is due. This works by freezing the NFT in your wallet (or in some cases escrowing the NFT). In either case, failure to make the second payment by the due date will result in loss of ownership of your NFT and you will not be able to retrieve the first payment.
- 1.How do I pay the remainder? We will be working to add the ability to pay directly from Hyperspace, but in the meantime you will be able to submit payment on the sharky.fi website. From here, you can also extend your loan if you wish.
- 2.Are there other options besides 7-days or 14-days? Can I divide up the payments into other increments? Today, we only offer BNPL options as a two-payment process. Currently (as we only integrate Sharky.fi for loans), the only terms we offer for the second payment is 7-days or 14-days depending on the collection. That being said, you can alway extend/roll the loan from sharky.fi giving you the ability to effectively create a longer-term BNPL payment plan for yourself.
- 3.Where is the NFT after I buy it with BNPL? In most cases, the NFT will be frozen in your wallet which means you will be able to see it on your account page and through your wallet of choice. In a handful of cases, the NFT is escrowed rather than frozen, meaning you won't see it in your wallet. It will then be moved into your wallet after you make the second payment. We will specify whether the NFT is frozen or escrowed on the purchase confirmation screen.
- 4.What happens to the NFT if I don’t pay the remaining amount? What about the first payment? Failure to make pay the remainder that is due, or extend the loan in time will result in you forfeiting the NFT to the lender. You will not be able to retrieve the first payment.
- 5.Who gets the money I initially pay? The money you pay goes towards purchasing the NFT from the seller of the NFT. Any additional amount above the listing price goes towards interest and platform fees.
NFT Usage Questions
- 1.Can I enter the project discord with a partially paid NFT? Discord verification tools typically work by checking your wallet for the presence of a project's NFT. So in most cases for BNPL where the NFT is frozen in your wallet, you should be able to enter the project's discord. If it is a BNPL purchase where the NFT is escrowed though (see question #3 above), this won't be the case.
- 2.Can I list or sell the NFT before I pay the full amount? As of right now, you CANNOT sell the NFT until you have fully paid for the NFT (both first and second payment). We are working on a new feature though to enable you to list on Hyperspace before it is fully paid off. Stay tuned!
- 3.Can I stake the NFT before it’s fully paid? We cannot confirm whether this is possible given it depends on the staking contract itself. Feel free to share your experience with us.
- 4.Can I send the NFT to another wallet? Given that the NFT is frozen or escrowed, sending the NFT to another wallet is not possible.
- 5.Can I receive airdrops based off the partially paid NFT? See question #1 above about entering discord. Airdrops often work in a similar fashion by doing a wallet check so in most cases you will come up as the owner of record. However, given that this is a manual process by most projects, there is personal discretion and we cannot advise you to rely on this.