▲ 404 ▼ 'Buy now, pay later' goes from niche to normal as young people use it for daily essentials including groceries (www.nbcnews.com) submitted 2 years ago by return2ozma@lemmy.world to c/news@lemmy.world 77 comments fedilink hide all child comments
[–] YaksDC@lemm.ee 21 points 2 years ago* (last edited 2 years ago) (2 children) I don't know the difference between this and using a credit card? You can extend payment using a CC, are the interest rates that much lower? permalink fedilink source hideshow 4 child comments replies: [–] SkyNTP@lemmy.ml 17 points 2 years ago* (last edited 2 years ago) BNPL generally has a fixed payment schedule, while CC does not. It's entirely feasible to use a CC and never pay interest by paying debts immediately (because you have cash liquidity). At that point, a CC becomes more of a low-friction "accounts payable" system for consumers than a financing scheme. BNPL's primary value is in making large purchases because of low cash liquidity. When consumers don't have enough cash liquidity for FOOD, that's a sign of bad times. Or it means people are leveraging low interest loans to gamble their lunch money. Still not a good look. permalink fedilink source parent [–] FuglyDuck@lemmy.world 15 points 2 years ago Not much difference, but it’s usually fairly predatory. It’s not that it’s a fairly new thing- it’s that people are having to do it for necessities. Which just makes everything more expensive as your (probably) now on a credit treadmill. permalink fedilink source parent
[–] SkyNTP@lemmy.ml 17 points 2 years ago* (last edited 2 years ago) BNPL generally has a fixed payment schedule, while CC does not. It's entirely feasible to use a CC and never pay interest by paying debts immediately (because you have cash liquidity). At that point, a CC becomes more of a low-friction "accounts payable" system for consumers than a financing scheme. BNPL's primary value is in making large purchases because of low cash liquidity. When consumers don't have enough cash liquidity for FOOD, that's a sign of bad times. Or it means people are leveraging low interest loans to gamble their lunch money. Still not a good look. permalink fedilink source parent
[–] FuglyDuck@lemmy.world 15 points 2 years ago Not much difference, but it’s usually fairly predatory. It’s not that it’s a fairly new thing- it’s that people are having to do it for necessities. Which just makes everything more expensive as your (probably) now on a credit treadmill. permalink fedilink source parent