Paypal, Klarna and soon Apple Pay Later allow you to pay in 2, 3 or 4 installments for free. And fashion brands know how to target young people without compromising on costs. At risk of debt.
Those who are most addicted to online shopping have certainly noticed this: it is becoming easier to get payment options on large brand e-shops. Apple has just announced that it wants to deploy the new feature, pay laterwhich allows you to pay in 4 installments for free, either online or in person. The Klarna banking service, which also allows you to pay in 3 installments for free, is already integrated into many online stores such as Shein, Boohoo, Uniqlo, Undiz and even COS. The same goes for Paypal, which is available almost everywhere. Eshops like Zalando even allow you to order clothes online and after receiving everything you will only pay for what you decide to leave.
However, all these payment instrument services have an unfortunate tendency to owe many young people due to a lack of sufficient financial education.. On Insta and TikTok sites, many people around the age of twenty testify to the problems caused by politics. Buy now, pay later (Buy now, pay later, often abbreviated as BNPL).
“If you can’t buy it at once, maybe you shouldn’t buy it four times”
This is the case with the video of influencer Madeleine White, who summarized on TikTok to alert her audience:
“Dude, just because you can pay later doesn’t mean you won’t pay anything. $ 400 is still $ 400. And if you couldn’t afford to buy it all at once, maybe that doesn’t mean you shouldn’t buy it. »
This is because it is often the case that young people who are not used to managing finances do not realize or underestimate the long-term impact of such payment methods, such as SHE American:
“The survey carried out by Piplsay 43% of Gen Zers missed at least one payment in 2021. A Qualtrics study on behalf of Credit Karma found that more than half of Gen Z and Millennial respondents missed at least one payment compared to Gen Xers (22%) and baby children.boomers (10%). NYU marketing professor Scott Galloway called the BNPL a “mortgage crisis equivalent” for the Millennials and Gen Z in an episode of the Pivot podcast. »
When will there be more financial education for everyone?
The ability to delay the necessary in this way may give the impression that the budget is much larger than reality, or even unlimited. This illusion can cause financial disasters, driven by the acceleration of fashion trends on networks such as TikTok and Instagram, where sports according to the latest micro-trends can help gain popularity and virality. And as this is an increasingly ephemeral fashion, their fans often turn to ultra-fast fashion brands. This approach to disposable fashion creates a vicious circle of multiplying payment options, which includes many young people. In short, other arguments for greater financial education.
For example, when will high school classes understand your paychecks, pay taxes, take or not take a loan, negotiate it, and fully understand what they are returning? In the meantime, it may be time for you to rejoice when making a purchase disagreement, as you must enter all the numbers on your credit card, the CVV (card verification value: three small numbers on the back of the card). ), or even double phone authentication may be less wasted time than an opportunity to think about (c) folding.
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Photo credit on the front: TikTok screenshot.