Not without risk
But there are also risks. Critics believe that Afterpay and similar apps may entice people to spend money they don’t have.
The BNPL industry is basically unregulated in most countries, and some people call for regulators to step in to protect consumers.
“Some consumers don’t know what will happen if they default on payment, which is bad for the industry as a whole,” Sorell said.
Users who fail to pay the scheduled payment will be hit by huge late fees.
The Board of Directors of the Financial Conduct Authority of the United Kingdom stated in February that “there is a strong and urgent reason to put the buy-and-pay business into regulation”.
A report commissioned by FCA stated that the use of BNPL products has almost quadrupled in 2020 to 2.7 billion pounds ($3.8 billion) and has 5 million users.
The review found that although BNPL products provide consumers with an alternative to more expensive credit, it “also represents a significant potential harm to consumers.”
