How the ‘buy now, pay whenever’ culture is taking off across the globe amid Covid-19 – The National

How the ‘buy now, pay whenever’ culture is taking off across the globe amid Covid-19 – The National

Swelling subscriber numbers as a result of the shift to online shopping may also increase bad loans, mainly among first-time users who are more likely to default

















A logo for Afterpay and Zip on a store window in Sydney, Australia. The companies are among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants commission. Reuters







Browsing online during lockdown, Jessica Friend spotted a pair of Ray-Ban sunglasses she liked, but the price tag made the 30-year-old US resident think twice.



What persuaded her to click 'buy', Ms Friend says was the short-term credit offered by Afterpay, which split the $260 (Dh955) payment into four interest-free instalments.



Afterpay is among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants a 4 per cent to 6 per cent commission.



These buy-now-pay-later (BNPL) firms have benefited from a shift to online shopping during the coronavirus crisis in countries including the United States, where state aid has also boosted retail sales.









I'm more inclined to use them because they