A survey of young New Zealanders finds four in ten didn’t view buy now, pay later as debt. That perception can influence how they use it.
Articles on Afterpay
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Research shows that shoppers are tempted as much by what the technology brings as the credit on offer.
New research has found 20% of young people are struggling to keep on top of their ‘buy now, pay later’ debt – leading to long term financial harm.
More credit checking, spending limits and caps on fees are among the changes being imposed on buy now, pay later lenders.
Buy now, pay later is a booming business. But be warned before you invest in it – or use it as a customer.
Instead of blaming young people for eating too many avocado toast breakfasts, we need a better understanding of the economy and society they are growing up in.
In the first six months of 2021, Afterpay’s gross profit was US$284 million — about 150% more than the US$113 million profit it booked in the six months before the pandemic.
By not charging interest, Afterpay and other ‘buy now, pay later’ providers avoid the rules of national consumer credit law.
Many startups now offer “instant” loans for online purchases. This business model has been around for centuries and is incredibly profitable.
Top contributors
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Professor of Finance, Auckland University of Technology
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Adjunct Senior Lecturer, Business School, Auckland University of Technology and Senior Lecturer in Finance & Financial Planning, Griffith University
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Senior Lecturer, School of Accounting, Economics and Finance, Curtin University
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Head of School at the School of Accounting, Curtin University
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Associate Professor in Sociology, University of Newcastle
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ARC Future Fellow, School of Education, Deakin University
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Associate Professor, University of Newcastle
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Associate Professor, Sociology, University of Newcastle
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Conjoint Senior Lecturer, University of Newcastle
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Senior Lecturer in Computer Science, School of EECMS, Curtin University
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Associate Professor of Marketing at the School of Management, Swansea University
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Professor of Marketing, University of Gloucestershire
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Senior Lecturer in Marketing, University of Gloucestershire
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Associate Professor of Marketing, Auckland University of Technology
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PhD Candidate in Economics and Finance, Auckland University of Technology