Why ‘buy now pay later’ could be so wrong

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Hello readers,

What do I do when I’m feeling down, you ask? The answer is, simply, ✨ impulse buy ✨. Which is why even though I’m close to hitting my 30s, I have yet to sign up for a credit card or any other service that will allow me to spend “future” money.

But here’s the painful truth about growing old: You will soon need to pay for big-ticket items such as furniture, renovations, wedding packages, even a house. And so as someone who’s in the midst of her adulting journey, I’ve started researching on “credit cards with the best rebates” to pay for such items. ‘Buy now, pay later’ services have popped up a couple of times in my research, and they have always made me wonder if they’re too good to be true.

Today we look at:

• Why ‘buy now, pay later’ services could be both a boon and a bane
• Things get heated on Twitter over an Indian startup’s figures
• Other newsy highlights such as One Championship eyeing an IPO via SPAC and Facebook reversing its ban in Australia

PREMIUM SUMMARY

Buy now, regret later?

BNPL is getting extremely popular among millennials and Gen Zers. This is not a surprise since the service allows shoppers to split the cost of items — let’s say a PlayStation 5 — across a few months of payments instead of having to pay the full price in one go. But while convenient, this way of paying is not all rainbows and butterflies.

• A breeding ground for consumerism: BNPL may be promoting a culture of consumerism, overspending, and debt. And this concern is not unwarranted: According to a survey in Singapore last year, impulse buying was cited as the most common mistake among BNPL users.
• Unhide the hidden fees: BNPL players like Atome and Hoolah say they don’t rely on late fees to make money, though they still charge a nominal amount. While BNPL services’ fee structures for late payments are easier to understand than those of credit cards, they often aren’t very clear and at times are hidden within walls of text.
• They attac (with flashy ads), but they also protec: To protect consumers from overspending, BNPL firms including Hoolah and Rely have installed personalized spending limits. Atome is also said to be building features to help consumers shop smarter.

Read more: The dark side of ‘buy now, pay later’

PREMIUM SUMMARY

Things get heated on Twitter

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