People are often unaware of the dangers of Buy Now, Pay Later, says Barclays.
Buy Now, Pay Later (BNPL) is growing increasingly popular among UK shoppers, but many are oblivious to the dangers of the new payment practice, a report from Barclays suggests. The bank recently polled 2,000 UK adults who have used BNPL and found that two in five (39%) don’t really know how the payment method works. In fact, some (19%) didn’t know that some BNPL providers charge late fees for missed payments, while others (20%) weren’t aware that missing instalment payments hurts their credit score. Buy now, pay later functionality has become increasingly common across ecommerce sites in recent years, Barclays suggests. In fact, more than a third (35%) of respondents said they were “more likely” to use it more in the future, as prices keep going up.
