Problem
BNPL: Debt trap or Essential aid?
The pandemic saw a huge uptake in use of BNPL. Today the use is much more complicated and people are using it for more frequent purchases reflecting an increasing reliance on credit to extend their spending power. It currently is a 'one size fits all' solution - from affording luxury to managing expenses with the cost of living crisis.
On one hand, BNPL is becoming an essential choice that consumers are preferring because it gives them a lot of flexibility whether they’re funding takeaways, essentials or experiences.
On the other hand, BNPL gives everyone easy access to credit without any prior checks and takes away the emphasis from the actual cost and terms of use, fuelling impulsive purchases. GenZ happens to be the group most reliant on BNPL services and this may quickly turn into a debt trap for most vulnerable users.
