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This is very convenient for consumers. I don't know why anyone wouldn't want it.

by didip 2y ago

lxgr 2y ago
Nobody capable of high school level of math and with access to a credit card should rationally want to use BNPLs, at least in the US: Credit card payments have an average payment due date of 6 weeks (0-4 weeks until statement cutoff, 4 further weeks until payment due date without interest charges), no interest charges when paid within that timeframe, and offer around 1-2% of cashback. BNPLs have 25% due at 0, 2, 4, and 6 weeks respectively, for an average due date of 3 weeks, and usually don't offer any cashback. In other words, you get half as long to pay back the loan and miss out on 1-2% of opportunity cost on top of that. The fact that people still use them shows that either some consumers value other things more highly than just the strictly best deal from a financial point of view, or is a concerning piece of evidence of a lack of financial literacy (or both).
- dialup_sounds 2y ago
  Gen Z doesn't have a credit card. They have a debit card issued by some not-bank fintech app. BNPL appeals to them.
  - lxgr 2y ago
    Where did you get that idea? 86% of Gen Z members (with a credit score, and you usually need one to rent) have a credit card in the US: https://www.experian.com/blogs/ask-experian/research/gen-z-and-credit/ https://www.experian.com/blogs/ask-experian/research/gen-z-a...
    - dialup_sounds 2y ago
      It was a quick generalization that I won't defend, but it's not based on nothing: https://www.paymentsdive.com/news/how-does-gen-z-feel-about-credit-cards-its-complicated/620125/ https://www.paymentsdive.com/news/how-does-gen-z-feel-about-...
      - hot_gril 2y ago
        I wouldn't be surprised if us zoomers were more wary of incurring debt on credit cards because they seem more complex, predatory, or expensive than some BNPL with a user-friendly app. But just using them and paying them off, that's worthwhile for points.
spoonjim 2y ago
If you can’t pay for it today you can’t afford it, unless it’s a financial investment, which wouldn’t be something you’d use Apple Pay for.

This is very convenient for consumers. I don't know why anyone wouldn't want it.

by didip 2y ago

This is very convenient for consumers. I don't know why anyone wouldn't want it.

lxgr 2y ago

Nobody capable of high school level of math and with access to a credit card should rationally want to use BNPLs, at least in the US: Credit card payments have an average payment due date of 6 weeks (0-4 weeks until statement cutoff, 4 further weeks until payment due date without interest charges), no interest charges when paid within that timeframe, and offer around 1-2% of cashback. BNPLs have 25% due at 0, 2, 4, and 6 weeks respectively, for an average due date of 3 weeks, and usually don't offer any cashback. In other words, you get half as long to pay back the loan and miss out on 1-2% of opportunity cost on top of that. The fact that people still use them shows that either some consumers value other things more highly than just the strictly best deal from a financial point of view, or is a concerning piece of evidence of a lack of financial literacy (or both).

dialup_sounds 2y ago
Gen Z doesn't have a credit card. They have a debit card issued by some not-bank fintech app. BNPL appeals to them.
- lxgr 2y ago
  Where did you get that idea? 86% of Gen Z members (with a credit score, and you usually need one to rent) have a credit card in the US: https://www.experian.com/blogs/ask-experian/research/gen-z-and-credit/ https://www.experian.com/blogs/ask-experian/research/gen-z-a...
  - dialup_sounds 2y ago
    It was a quick generalization that I won't defend, but it's not based on nothing: https://www.paymentsdive.com/news/how-does-gen-z-feel-about-credit-cards-its-complicated/620125/ https://www.paymentsdive.com/news/how-does-gen-z-feel-about-...
    - hot_gril 2y ago
      I wouldn't be surprised if us zoomers were more wary of incurring debt on credit cards because they seem more complex, predatory, or expensive than some BNPL with a user-friendly app. But just using them and paying them off, that's worthwhile for points.

spoonjim 2y ago

If you can’t pay for it today you can’t afford it, unless it’s a financial investment, which wouldn’t be something you’d use Apple Pay for.