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Buy now, pay later is an attractive option for consumers, perhaps even more attractive during a recession. But with debt and inflation rising, perhaps the focus should be on companies that help protect borrowers from digging their own graves. — anna
The enduring appeal of buy now, pay later
I think tougher economic times will create immediate headwinds for the buy now, pay later trend. I’m wrong.
“BNPL is a form of credit that allows consumers to split a retail transaction into smaller, interest-free installments that pay back over time,” and it is “in a phase of rapid growth.” , a September Consumer Financial Protection Bureau report mentioned.
Recently, the Financial Times report that “demand for BNPL has exploded during the pandemic and continues to grow, according to data from the UK fintech open bank Snoop.”
This is not just a Gen Z trend, the FT adds: Demand “has increased across all age groups in the UK, including older people, who find themselves squeezed by the crisis.” cost-of-living crisis and need short-term credit.”
