Just Asking Buy Now Pay Later
Jul 19, 2025
In this discussion, Elizabeth Mulholland, CEO of Prosper Canada, and Omar Fares, Assistant Professor of Marketing, dive into the world of Buy Now Pay Later (BNPL) services. They explore the convenience and risks of BNPL, especially for younger consumers navigating financial pressures post-pandemic. The conversation spotlights the psychological factors driving its popularity, the security challenges these services pose, and the urgent need for consumer awareness and regulation to prevent potential debt traps.
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BNPL Debt Risks
- Buy Now Pay Later (BNPL) apps often approve purchases quickly without hard credit checks.
- This ease can lead consumers into a chokehold of accumulating debt beyond credit cards.
Why BNPL Spending Rises
- BNPL grew rapidly with global economic instability and young people facing job challenges.
- Users spend approximately 6% more using BNPL due to immediate gratification and optimism bias.
Watch Installment Payment Illusion
- Focus on total cost, not just low monthly installment prices.
- Beware that retailers pay fees to BNPL companies because it increases their sales by 15-20%.