I see it, I like it, I want it, I got it… with Buy Now, Pay Later

The BNPL or “Buy Now, Pay Later” craze is here and our generation, along with Gen-Z, is taking full advantage of the perks. Because who really wants to wait until pay-day to treat themselves? Payment-plan apps like Afterpay and Klarna, are quickly becoming a popular option when online shopping - you might have even used them a few times. Because of their high favorability and popularity with young consumers, financial regulators are starting to worry about the more long-term effects that come with using them. Let’s get into it.

While it has its critics, Klarna is popping these days for a reason. What Klarna does is virtually create an even more unlimited online shopping experience for folks. You might not normally drop $140 on a pair of shoes, but 4 interest-free payments of $35 has such a nice ring to it!

But is it too good to be true? Concerns of easily racking up short-term debt and creating a recipe for shopping addiction are making their way into conversations about Klarna… The $46.5B company says otherwise, though, arguing that Klarna is actually a smarter option than credit cards. Unlike traditional credit cards, Klarna allows shoppers to check their affordability before deciding to make a purchase, and offers you a repayment plan to help you avoid debt. Not to mention Klarna restricts its service if you do miss a payment.

Do you enjoy the convenience of BNPL, or is it a one-way ticket into debt? As a community chockful of so many creative entrepreneurs and business owners, we know money MATTERS. And it’s important to keep in mind all sides of the story when it comes to spending it.

For further reading on this topic, check out this article!