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It’s popular with young people who can’t get or don’t want credit cards (just look at the marketing for Klarna to see the target market). Customers and merchant
by bjohnson225 5y ago
It’s popular with young people who can’t get or don’t want credit cards (just look at the marketing for Klarna to see the target market). Customers and merchants like it for the same reason - it allows a transaction to happen that otherwise wouldn’t. Merchant gets their money, customer gets their product and pays no fees if they repay on schedule.
Obviously if you can’t afford an item without this type of system then the probability that you miss a payment is high, and then these companies make their profit.
- chrismorgan 5y ago> and pays no fees if they repay on schedule Every single instance of this type of thing that I’ve looked at has had a fee for using their services, either a flat amount or a percentage of the transaction cost, so that even if they’re interest-free (and don’t they announce that loudly!) they’re not cost-free.