I am Bob Average Millennial | Gen Z shopper. I have never experienced the need to step into the corner bank – I got a $500 entry-level credit card in college, forgot to pay for a novelty purchase, and have refrained from using it since. I live in a world of Wealthsimple Cash and KOHO Cards.
I have multiple abandoned checkout baskets littering the web. Payment paralysis hit me when I consider how the fee will dent my monthly budget.
Buy Now Pay Later (BNPL) has become a convenient lifestyle option for me: Instead of having to pay the entire cost upfront at checkout with a credit card that will penalize me 20 points if I fail to pay by the end of the month, I can split the payment over a few months with no interest.
(It is as if my credit card was dating my debit card and they had a super-cool baby.)
Like any financial decision, my mom says I need to develop good financial wellness skills.
With multiple BNPL purchases:
- I can lose track of the payments and incur penalties
- Risk draft fees if payments are automatically pulled
- Delinquent payments could impact my credit score
- Prompt payment may not help improve my credit score
However in a changing world where the financial custodians are no-longer bricks and mortar on the corner of mainstreet, BNPL is one of many digital friendly solutions. Having the option to buy a pair of jeans or a phone in bite size payments is a convenience if well managed.