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Buy now, pay later. Is this a bubble?
We came across the article on the link below and we wonder what could be the impact on firms like $AFRM $SQ $PYPL $AFTPY, if any.
Few notable extracts from the article:
“4 in 5 U.S. consumers use BNPL on everything from clothing to cleaning supplies, according to Experian, and most shoppers said buy now, pay later could replace their traditional payment method”
“When people start buying household goods on credit, that signals a problem.” Marshall Lux
“BNPL’s rapid growth is driven primarily by younger consumers, with two-thirds of BNPL borrowers considered subprime” Lux noted
“42% of consumers who’ve taken out a buy now, pay later loan have made a late payment on one of those loans, LendingTree found.”
“The financial watchdog said it is particularly concerned about how these programs impact consumer debt accumulation, as well as what consumer protection laws apply and how the payment providers harvest data”
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