Financially Inclined

When to use buy now, pay later services

May 12, 2023
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INSIGHT

BNPL Makes You Spend More

  • Buy Now, Pay Later (BNPL) splits payments into small-seeming chunks that mask the real cost and encourage bigger purchases.
  • Joshua Bote says average cart sizes using BNPL can be nearly four times larger than typical purchases.
ANECDOTE

TikTok Jokes Revealed A Trend

  • Joshua noticed TikTok creators joking about buying huge items by slicing payments with BNPL, illustrating cultural normalization.
  • He used these viral jokes as a reporting lead into why BNPL is so pervasive among young shoppers.
INSIGHT

BNPL's Safety Image Hides Weak Regulation

  • BNPL markets itself as safer than credit cards by advertising no interest and no late fees, which appeals to Gen Z.
  • Joshua Bote warns BNPL lacks the consumer protections and reporting requirements that govern credit cards.
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