, Columnist
Yes, You Can Buy Now, Pay Later. But Should You?
These services encourage spending on lower-cost and impulse purchases. Use them responsibly.
What’s the catch?
Source: Bloomberg
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Lay away. Credit cards. Installment loans. We’ve been engaging in “buy now, pay later” practices for decades. The latest model actually bears the title. Dubbed as the hottest thing in fintech, start-ups such as Affirm Holdings Inc., Klarna, Afterpay Ltd and even household names including PayPal Holdings Inc. are offering customers the option to spread out the cost of a purchase over smaller, affordable monthly payments.
Millennials and young Gen X shoppers have flocked to buy now, pay later apps with Gen Z not far behind. Are these simply the next innovation in consumer culture? Or should we be worried?