Tech giant Apple entered the Buy-Now-Pay-Later (BNPL) industry. With Apple now offering Buy-Now-Pay-Later, the BNPL industry will most likely attract more users. Using the BNPL is like taking a loan, only without interest. The credit bureaus are also looking to account for BNPL in users’ credit scores, which could affect those who use it.
BNPL operators partner with essential goods companies, such as gas stations and grocery stores, and users could overspend buying products. Ted Rossman, a senior industry analyst at CreditCards.com, says it is like “robbing Peter to pay Paul.” Experts also predict high inflation will soon force BNPL companies to shut down the service. As always, buyer beware!