The article discusses the pitfalls of buy now, pay later (BNPL) services, emphasizing that while they may seem convenient, they often lead consumers to overspend on non-essential items like food or electronics. A personal account from someone who interned at a BNPL firm describes the system as exploitative, benefiting from interest on missed payments and retailer margins. Retailers pay BNPL companies because the promise of smaller payments results in increased sales, reflecting a dangerous consumer mindset that encourages spending beyond one’s means.
Buy now, pay later services encourage overspending and are a trap, as they profit from missed payments and incentivize buying unnecessary items through smaller checkout amounts.
Retailers pay a margin to BNPL firms because these services increase consumer spending, despite potentially costing the retailers' profits, demonstrating a flawed purchasing mindset.
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