The cat in the hat

The-Cat-in-the-Hat-iantoons

“The cat in the hat” – a cartoon that illustrates the dangers of the Buy Now Pay Later (BNPL) payment option.

BNPL, which allows consumers to pay in interest-free installments, is a trend exacerbated by the coronavirus pandemic and is now a $750BN market that represents 14% of all retail sales.

Firms like Klarna and AfterPay are targeting Gen Z and millennials, of which research by Insider Intelligence identified 38% use BNPL “to make purchases that otherwise wouldn’t have fit in my budget.”

While interest rates and the economy continue to perform, BNPL will be lauded as an innovative new financial mechanism, but should the economy turn, expect the industry to become known for distressed debt and predatory lending.

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“It’s like Hire Purchase that people used to buy TVs when I was growing up.”
Angela Hey
President at Spiritcare Ministry To Seniors
“23% credit-card from Mastercard or 0-5% interest from Affirm. Neither are ideal but less is always better, right?”
Elizabeth Kukka, MBA
Chief Executive Officer at Purpose for Profit
“I was just researching Afterpay last week… layaway basically with a millennial twist.

I just seeing this being another way to create a bubble that will get popped.

The last Gen did it with mortgages and we are using layaway aka Afterpay to buy Yeezys, sell those Yeezys on eBay or Amazon, and plan to pay off the debit with our projected profits.

Oh what tangled webs we weave.”
Kristina Tierney
Building Companies & Careers
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