The problems with using buy now, pay later to fund travel
2 years, 3 months ago

The problems with using buy now, pay later to fund travel

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Companies like American Airlines, United Airlines and vacation rental website Vacasa now offer the option to make reservations now and pay it back incrementally over time with “buy now, pay later” services. OVERSPENDING Buy now, pay later services have access to shoppers’ purchasing data, which can then be used in future marketing campaigns — likely encouraging even more spending. A 2022 Motley Fool survey found that reasons to use buy now, pay later included: ● To make purchases that wouldn’t fit in my budget. BUY NOW, PAY LATER ISN’T ALL BAD If paid off on time, interest-free buy now, pay later purchases provide an affordable alternative to credit cards, which typically charge interest on outstanding balances.

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History of this topic

‘Buy now, pay later’ is more popular than ever. It can cost more than you think
3 months, 3 weeks ago

‘Buy now, pay later’ is more popular than ever. It can cost more than you think

LA Times  

More shoppers than ever are on track to use “buy now, pay later” plans this holiday season, as the ability to spread out payments looks attractive at a time when Americans still feel the lingering effects of inflation and already have record-high credit card debt. Buy now, pay later can be particularly appealing to consumers who have low credit scores …

‘Buy now, pay later’ is more popular than ever. It can cost more than you think
3 months, 3 weeks ago

‘Buy now, pay later’ is more popular than ever. It can cost more than you think

Associated Press  

NEW YORK — More shoppers than ever are on track to use ‘buy now, pay later’ plans this holiday season, as the ability to spread out payments looks attractive at a time when Americans still feel the lingering effect of inflation and already have record-high credit card debt. Buy now, pay later can be particularly appealing to consumers who have …

What the new 'buy now, pay later' rule means for small businesses offering the service
9 months, 1 week ago

What the new 'buy now, pay later' rule means for small businesses offering the service

Associated Press  

NEW YORK — “Buy now, pay later” services are a popular way that shoppers pay for goods. If something goes wrong, consumers could blame the small business — even if they have nothing to do with the payment plan. AP AUDIO: What the new ‘buy now, pay later’ rule means for small businesses offering the service AP correspondent Mae Anderson …

Users of buy now, pay later services to undergo credit checks under proposed new law
9 months, 2 weeks ago

Users of buy now, pay later services to undergo credit checks under proposed new law

ABC  

In short: Proposed new legislation will require buy now, pay later services to do basic credit checks on new customers to make sure they can afford the service. Proposed new legislation will require buy now, pay later services to do basic credit checks on new customers to make sure they can afford the service. Users of buy now, pay later …

Buy now, pay later companies must adhere to credit card standards, consumer agency says
9 months, 3 weeks ago

Buy now, pay later companies must adhere to credit card standards, consumer agency says

Associated Press  

NEW YORK — Buy now, pay later companies must provide consumers with the same legal rights and protections as credit card lenders do, the Consumer Financial Protection Bureau said Wednesday in a new rule. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and …

Experts’ warning for customers using ‘buy now, pay later’ credit
11 months, 2 weeks ago

Experts’ warning for customers using ‘buy now, pay later’ credit

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Many customers who have become reliant on ‘buy now, pay …

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit
1 year, 3 months ago

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit

Associated Press  

NEW YORK — Sebastian Siemiatkowski is a co-founder and CEO of Klarna, the Sweden-based company that’s one of the world’s biggest providers of buy now, pay later services to customers. Buy now, pay later has become an increasingly popular option for consumers for purchases: its usage is up 10-fold since the pandemic and U.S. regulators see it as potentially a …

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit
1 year, 3 months ago

Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Sebastian Siemiatkowski is a co-founder …

Want to buy now, pay later this holiday season? Ask yourself these 5 questions first
1 year, 3 months ago

Want to buy now, pay later this holiday season? Ask yourself these 5 questions first

LA Times  

“Buy now, pay later” payment plans are a popular financing option, especially around the holiday season. “Buy now, pay later,” a type of payment plan that divides the total cost of your purchase into smaller installments, is offered at most major retailers, including Walmart, Target and Amazon. The short application, immediate approval decision and no hard credit check can make …

More Americans are expected to ‘buy now, pay later’ for the holidays. Analysts see a growing risk
1 year, 4 months ago

More Americans are expected to ‘buy now, pay later’ for the holidays. Analysts see a growing risk

Associated Press  

NEW YORK — Consumers are expected to use “buy now, pay later” payment plans heavily this holiday season, a forecast that bodes well for retailers but that has credit experts again sounding alarm bells. Vivek Pandya, lead analyst for Adobe Digital Insights, said that “rising interest rates, inflation in food prices, and resuming student loan repayments” have increased costs for …

Buy now, pay later services will be considered credit products by the end of the year. Here's how it will work
1 year, 10 months ago

Buy now, pay later services will be considered credit products by the end of the year. Here's how it will work

ABC  

Australia has joined the UK in regulating the buy now, pay later industry, under sweeping changes announced by the Financial Services minister on Monday. Financial Services Minister Stephen Jones told a borrowing and lending conference in Sydney that buy now, pay later "looks like credit, it acts like credit, it carries the risk of credit" and therefore the services would …

Millennial Money: Young adults traveling on fiscal thin ice
1 year, 11 months ago

Millennial Money: Young adults traveling on fiscal thin ice

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. “They’ll do it for multiple purchases, so that …

Should you buy now, pay later for your wedding?
1 year, 11 months ago

Should you buy now, pay later for your wedding?

LA Times  

“Buy now, pay later” plans let you break up your wedding purchases into smaller installments that you pay over a series of weeks or months. Couples may turn to increasingly popular “ buy now, pay later ” payment plans to ease the burden. “It’s a way to pay in bite-sized amounts that fits into how couples are used to budgeting.” …

The downsides of the ‘buy now, pay later’ trend
1 year, 11 months ago

The downsides of the ‘buy now, pay later’ trend

LA Times  

Starting this week, Apple is rolling out its version of “buy now, pay later.” Using a short-term loan to finance a small or medium purchase — Apple says Pay Later loans will be available in amounts from $50 to $1,000 — is “sold like a no-brainer” to consumers, personal finance expert Carmen Perez said. And there’s still negative consequences for …

Apple rolls out buy now, pay later service, with guardrails
1 year, 11 months ago

Apple rolls out buy now, pay later service, with guardrails

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Branded as “interest-free loans,” buy …

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend
2 years, 3 months ago

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend

NPR  

In a year marked by inflation, 'buy now, pay later' is the hottest holiday trend Enlarge this image toggle caption Peter Dazeley/Getty Images Peter Dazeley/Getty Images Buy something now, pay later: It's changing how we shop. "With 'buy now, pay later,' I feel more — I don't know if responsible — but I feel more on top of it," says …

As ‘buy now, pay later’ plans grow, so do delinquencies
2 years, 6 months ago

As ‘buy now, pay later’ plans grow, so do delinquencies

Associated Press  

NEW YORK — Americans have grown fond of “buy now, pay later” services, but the “pay later” part is becoming increasingly difficult for some borrowers. Given those features, consumer advocates and financial advisors initially had seen buy now, pay later plans as a potentially healthier form of consumer debt if used correctly. “If these buy now, pay later plans are …

EXPLAINER: What to know about ‘buy now, pay later’
2 years, 6 months ago

EXPLAINER: What to know about ‘buy now, pay later’

Associated Press  

NEW YORK — Since the start of the pandemic, the option to “buy now, pay later” has skyrocketed in popularity, especially among young and low-income consumers who may not have ready access to traditional credit. Branded as “interest-free loans,” buy now, pay later services require you to download an app, link a bank account or debit or credit card, and …

As 'buy now, pay later' plans grow, so do delinquencies
2 years, 6 months ago

As 'buy now, pay later' plans grow, so do delinquencies

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Given those features, consumer advocates and financial advisors initially …

Is ‘Travel Now, Pay Later’ a good option for your vacation?
2 years, 9 months ago

Is ‘Travel Now, Pay Later’ a good option for your vacation?

Live Mint  

Planning a last-minute summer holiday but don’t have enough savings to fund the trip? Some travel aggregators, such as MakeMyTrip and Expedia, have started offering a pay later financing option, commonly known as Vacation Now, Pay Later, at the time of booking checkout that allows customers to book the holiday without paying for it immediately. Vacation Now, Pay Later service …

What to know before your business adds buy now, pay later
2 years, 11 months ago

What to know before your business adds buy now, pay later

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy “Buy now, pay later” is …

Liz Weston: How buy now, pay later loans could alter credit
3 years ago

Liz Weston: How buy now, pay later loans could alter credit

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Recently, the three major credit bureaus announced plans to …

‘Buy now, pay later’ catches on just in time for holidays
3 years, 3 months ago

‘Buy now, pay later’ catches on just in time for holidays

Associated Press  

SAN FRANCISCO — As Americans shop for the holidays, they will likely see a swarm of offers to get their gifts now but pay for them later in fixed monthly installments. One major credit card company says roughly six out of every 10 of its U.S. customers started a buy now, pay later program for the first time this year, …

'Buy now, pay later' catches on just in time for holidays
3 years, 3 months ago

'Buy now, pay later' catches on just in time for holidays

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. One major credit card company says roughly six out …

Buy now, pay later services such as Afterpay and Zip can become a debt trap. Here's how not to get caught
3 years, 4 months ago

Buy now, pay later services such as Afterpay and Zip can become a debt trap. Here's how not to get caught

ABC  

Have you racked up a bit of debt with all of that online shopping during lockdown? ASIC's Moneysmart website says you should make sure you include your buy now, pay later payments in your budget, and link any accounts you have to a debit card instead of a credit card so you don't get hit with credit interest. "Remember the …

'Buy now, pay later' stars like Afterpay, Zip don't need regulation, Senate inquiry into fintech says
4 years, 6 months ago

'Buy now, pay later' stars like Afterpay, Zip don't need regulation, Senate inquiry into fintech says

ABC  

Consumers don't need to have legal protections when they use "buy now, pay later" services like Afterpay and Zip, because those companies can just self-regulate, according to a Senate inquiry into fintech. Key points: A Senate inquiry has handed down an interim report into the fintech sector, looking at "buy now, pay later" operators like Afterpay and Zip Despite calls …

Australians ditch credit cards as millennials turn to 'buy now, pay later' players like Afterpay, Zip
4 years, 7 months ago

Australians ditch credit cards as millennials turn to 'buy now, pay later' players like Afterpay, Zip

ABC  

A global pandemic and the nation's first recession in 29 years haven't stopped the boom in 'buy now, pay later' services. Key points: As 'buy now, pay later' services grow in use during the COVID-19 pandemic, credit card use is in decline Consumer advocates say 'buy now, pay later' should be regulated like credit card companies are, but the fin …

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform
6 years, 6 months ago

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform

ABC  

The digital payment app Afterpay, popular amongst millennials, is facing criticisms that it causes "financial stress" for vulnerable consumers. "Our financial counsellors report that we are receiving increasing numbers of calls from people with buy-now-pay-later debts, including Afterpay," said Katherine Temple, the Consumer Action Law Centre's senior policy officer. ASIC's regulatory loophole Also released on Thursday was a report by …

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