PayPal Pay In 4, Paypal 12 months (sometimes), Amazon Affirm, all no interest. Unless you miss the payment. Then bend over for it. Interests rates vary from 8 percent to 32 percent retroactive, depending on who you get it through. I’ve used BNPL several times, but always made sure I can afford the payment in the monthly budget, and only when it is zero interest.
Are many of them no interest?
Blaster_M@lemmy.world 2 days ago
Pogogunner@sopuli.xyz 2 days ago
I’m not a BNPL user, but my understanding is that most are interest free (to attract more users) unless a borrower is late/misses a payment.
wesker@lemmy.sdf.org 2 days ago
I assumed that was the trap, or retroactive interest. Just seems to prey on those already at financial disadvantage.
elgordino@fedia.io 2 days ago
The BNPL company also charges the merchant much more than a credit card company does. Something like 6%. So they’re also making money on people who do pay in full at 0%.
The theory goes that the merchant is happy to pay the higher rate because it makes a sale happen that otherwise wouldn’t. Unfortunately that increased cost just gets added to the price everyone pays.