KingU.S. consumers are so fucked up, that they put more than $1 billion on buy-now, pay later services during Cyber Monday
Dr. WeskerMan, say what you will about credit cards, but at the very least with many of those you get rewards of some sort. BNPL is just the consumer version of the payday loan; you get nothing but the scam.
ExulionAre many of them no interest?
PogogunnerI’m not a BNPL user, but my understanding is that most are interest free (to attract more users) unless a borrower is late/misses a payment.
I assumed that was the trap, or retroactive interest. Just seems to prey on those already at financial disadvantage.
The BNPL company also charges the merchant much more than a credit card company does. Something like 6%. So they’re also making money on people who do pay in full at 0%.
The theory goes that the merchant is happy to pay the higher rate because it makes a sale happen that otherwise wouldn’t. Unfortunately that increased cost just gets added to the price everyone pays.
PayPal Pay In 4, Paypal 12 months (sometimes), Amazon Affirm, all no interest. Unless you miss the payment. Then bend over for it. Interests rates vary from 8 percent to 32 percent retroactive, depending on who you get it through. I’ve used BNPL several times, but always made sure I can afford the payment in the monthly budget, and only when it is zero interest.