Nearly a third of young people unaware BNPL can get them in debt

Nearly a third of 18-34-year-olds do not realise that they can get into debt using buy now pay later (BNPL) services, a report has found.

A survey by loan provider Creditspring found that 14% of those aged 18-34 have used BNPL to pay for services and goods, with 34% of those saying they use it once a month.

BNPL, which lets consumers pay for items in installments, has soared in popularity in recent years. Globally, BNPL purchases surpassed $120bn last year, fuelling the growth of providers such as Zilch and Klarna.

However, there has been growing scrutiny of the sector amid concerns that BNPL encourages consumers to spend beyond their means. While some services don’t charge interest or late fees, 14% of the respondents said they were not aware they could be charged for late repayments.

“If used correctly, BNPL offers more flexibility to UK shoppers. However, like many credit options, these products are offered or promoted in a way that encourages people to use them recklessly,” said Neil Kadagathur, co-founder and CEO of Creditspring.

Regulators in the UK and beyond have been looking at ways to tighten BNPL regulations. The UK’s financial regulator the FCA is yet to decide on regulation but has previously warned BNPL firms over “misleading” promotions.

Kadagathur added: “If people use BNPL for multiple purchases at once, in a couple of months’ time the total repayment amounts due can rapidly spiral out of control.”

Recent data has predicted that the BNPL space is to be worth $1tn (£866bn) by 2030. The market opportunity has spurred established companies such as Apple, Virgin, and NatWest to move into the space to varying degrees.

Zilch’s co-founder and CEO Philip Belamant recently told UKTN that the rush by some companies into BNPL is just to “appease stakeholders”.

BNPL is being closely examined by regulators not only in the UK but further afield. This week, Australia’s government outlined stricter BNPL controls.

NEWS RELATED

Apple upgrades App Store pricing, adds 700 new price points

ETtech Developers can choose from business models, such as one-time purchases and multiple subscription types Apple on Wednesday upgraded its pricing for the app store for developers adding 700 price points and new pricing tools that will allow firms to set prices as per country or region, manage foreign exchange ...

View more: Apple upgrades App Store pricing, adds 700 new price points

Collision of prehistoric continents 'cooked' the bones of ancient amphibians, say researchers

A photograph of the Jarrow amphibian Keraterpeton galvani on top and a CT-image of K. galvani below showing the alteration in the bones. Credit: Dr Aodhan O’Gogain, Trinity College Dublin Scientists have solved a decades-long mystery as to why ancient tetrapods—amphibian-like creatures that lived over 300 million years ago—preserved ...

View more: Collision of prehistoric continents 'cooked' the bones of ancient amphibians, say researchers

Rivian EV Plant Addresses Bed Bug Infestation: Is Production Affected?

The Rivian electric vehicle (EV) manufacturing plan has been infested with bed bugs in an isolated area. The latest problem comes as the all-electric car maker is working to ramp up the production of its R1S SUV and R1T pickup. (Photo : Justin Sullivan/Getty Images) SOUTH SAN FRANCISCO, CALIFORNIA – ...

View more: Rivian EV Plant Addresses Bed Bug Infestation: Is Production Affected?

Vietnam's EV maker VinFast files for US IPO

Vietnam-based electric vehicle maker VinFast announced that it has filed for an initial public offering (IPO) in the US to list on the NASDAQ. VinFast Trading & Investment Pte. Ltd, a subsidiary of Vingroup headquartered in Singapore, announced on Wednesday that it has publicly filed a registration statement on ...

View more: Vietnam's EV maker VinFast files for US IPO

US lawmakers ease planned curbs on Chinese chips amid corporate pushback

Reuters Chips made by SMIC are commissioned by companies all over the world and can be found in products as diverse as cell phones and cars US senators scaled back a proposal that placed new curbs on the use of Chinese-made chips by the US government and its contractors, according ...

View more: US lawmakers ease planned curbs on Chinese chips amid corporate pushback

Wealthcare app Hugosave acquires Visa Principal Member Issuing Licence in Singapore

Singapore-based wealthcare and savings app Hugosave officially announced on Tuesday that it has become a Visa Principal Member Issuing Licensee under its parent company, Atlas Consolidated Pte Ltd. As a principal licence holder, Hugosave will now be able to issue Visa cards directly, as well as sponsor associate licences ...

View more: Wealthcare app Hugosave acquires Visa Principal Member Issuing Licence in Singapore

Coastal diatoms' genetic diversity comes to the rescue when aquatic environments change abruptly

Slag heaps near Solstad copper mine today. Credit: Helena L Filipsson A closed copper mine on the Baltic Sea coast just south of Västervik has helped researchers study the capacity of coastal diatoms to survive when the environmental conditions change. A thesis from the University of Gothenburg shows that ...

View more: Coastal diatoms' genetic diversity comes to the rescue when aquatic environments change abruptly

Uber fined $14 million for misleading on fares and cancellation fees in Australia

ReutersAn Australian court fined Uber Technologies Inc A$21 million ($14 million) on Wednesday for threatening cancellation fees it never charged and overstating fare estimates on some rides.The penalty was less than a regulator wanted.The Australian arm of the U.S. ride-sharing app broke consumer law by misleading customers with warnings they ...

View more: Uber fined $14 million for misleading on fares and cancellation fees in Australia

Here are Google Pixel’s feature drops for December 2022

Overcoming the Challenges to Becoming a Global Digital Marketer - YouYaa

Animoca Brands acquires majority stake in music metaverse company PIXELYNX

Could new cancer drugs come from potatoes and tomatoes?

Researchers find an elusive European parent of lager yeast in Ireland

Imec to cooperate with Japan's Rapidus on 2nm technology

Amnesty International Canada Suffers Security Breach From Alleged China-Sponsored Hackers

Australian entrepreneur Monique Conheady joins Wavemaker Impact as its newest Venture Partner in Australia

ADDX fractionalises venture debt fund by Innoven Capital

'No place for killer robots in our city': San Francisco abandons controversial policy after backlash

China launches newest solid-fuel carrier rocket Kuaizhou 11 Y-2

The significance of TSMC building fabs in US

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network