Summary
Gen Z is increasingly relying on “buy now, pay later” (BNPL) services for holiday shopping, with spending projected to rise 11.4% this year, totaling $18.5 billion.
These services appeal to younger consumers with limited credit histories but can lead to overextension, as they lack centralized reporting and encourage overspending.
Experts warn of accumulating fees, particularly when BNPL plans are tied to credit cards.
With inflation and rising credit card debt already burdening Gen Z, consumer advocates caution that these services may worsen financial instability despite their convenience.
It also took me ages to realize why Paypal and Venmo have surcharges to transfer money instantly vs. wire in 1-3 days. Surely nobody would choose that!
Some people desperately need money at the very second, it seems, since they are truly living dollar to dollar.