Planet Money Buy now, pay dearly? (update)
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Nov 12, 2025 
Amelia Schmarzo, a young consumer who faced financial trouble through buy now, pay later (BNPL) services, shares her eye-opening journey. Payments expert Terry Bradford discusses how BNPL companies operate without interest, yet attract users by making spending feel manageable. They explore the impact of BNPL on shopping habits, the risks of accumulating debt without seeing the full picture, and the demographic most affected. Amelia reveals her turning point and how she now navigates her finances without falling prey to tempting credit offers.
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Influencer-Led Shopping Spiral
- Amelia Schmarzo discovered buy now, pay later after seeing influencer-linked products during pandemic lockdown.
- She bought a $200 bikini using Afterpay's four interest-free payments and found it felt surprisingly affordable.
Packages Felt Like Free Money
- Amelia quickly escalated from one item to multiple purchases after seeing recurring buy now, pay later options.
- She described the packages arriving as feeling like free money and
Merchants Foot The Bill
- Buy now, pay later firms typically run interest-free consumer offers but charge merchants steep fees around 4–9.5%.
- That merchant fee model explains how BNPL competes with and threatens traditional credit cards.