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Purchase now, pay later is an alluring choice for shoppers, maybe much more so in a recession. However with rising debt and inflation, maybe the main target ought to be on corporations that assist shield debtors from digging themselves right into a gap. — Anna
The enduring enchantment of purchase now, pay later
I assumed that harder financial occasions would create rapid headwinds for the purchase now, pay later pattern. I used to be fallacious.
“BNPL is a type of credit score that enables a client to separate a retail transaction into smaller, interest-free installments and repay over time,” and it’s “within the midst of fast progress,” a September Shopper Monetary Safety Bureau report said.
Extra lately, the Monetary Instances reported that “demand for BNPL boomed throughout the pandemic and has continued to develop, in response to information from U.Ok. open banking fintech Snoop.”
This isn’t only a Gen Z pattern, the FT added: Demand “has surged amongst all age teams within the U.Ok., together with older individuals, who discover themselves squeezed by the price of residing disaster and in want of short-term credit score.”
