The Dark Side Of Buy Now, Pay Later Apps

Think twice before using Buy Now Pay Later apps. There are no free lunches. Find out how expensive it is to offer (for a merchant), how that can increase prices, and how using other methods to pay might be better for you (and also for lower income households!)

Timestamps for video:

00:00 What are "Buy Now, Pay Later" companies?
00:46 Example of a Buy Now Pay Later transaction
01:12 How do these services make money?
03:10 How much does it cost the retailer?
05:05 How lower income households subsidize richer households
08:30 Is using a regular credit card transaction better?
10:09 What's the ideal way to pay for discretionary expenses?
11:09 Delinquency rates for credit and Buy Now Pay Later
11:35 How much revenue do missed payments generate?

Running length 00:12:39

Resources and links mentioned in the video:
How lower income households subsidize the rewards programs of wealthier households, New York Times
Factoring Accounts Receivable, Corporate Finance Institute
Credit Card Competition Tribunal in Canada here and here
How to calculate APR on short term loans (pdf)
How to calculate the interest payable on a credit card, Corporate Finance Institute

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