![]() ![]() Affirm doesn’t charge late fees but collected $200 million in interest payments from consumers in the same 12-month period. Marisabel Torres, director California policy, Center for Responsible LendingĪfterpay, for example, doesn’t charge interest on BNPL services, but it collected A$87 million ($64 million) in late fees from users in the 12 months ended June 30. ![]() Now, utilities, landlords, insurance companies, and car dealers are partnering with BNPL services for essentials. The range of products that can be financed using BNPL has been growing: Amazon and Apple announced new partnerships with Affirm this year, while Target, Macy’s, Gamestop, Foot Locker, Gucci, and Peloton all announced BNPL financing options. Popular BNPL services include Affirm, Afterpay, Quadpay, and Klarna. Cornerstone Advisors estimates $100 billion in purchases this year will be made using BNPL apps, up from $24 billion last year. Meanwhile, the low-cost, multiple-installment appeal of BNPL led to an astounding increase in such payments. While online shopping soared last year during the pandemic, credit card companies kept credit limits low and reduced new offers as lockdowns and layoffs prompted fears of widespread defaults. But as the services extend from small-ticket items to luxury goods, exercise equipment, and even rent and utilities, consumer protection advocates worry they may lead people into buying more than they can afford. “Buy Now, Pay Later” apps give millions of users the chance to instantly purchase what they want, then pay off the item in installments. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |