How the Newest Consumer Lending Craze Creates a Cycle of Dependency

Buy now, pain later — the essence of late-stage capitalism

Photo by Miltiadis Fragkidis on Unsplash

It seems that every day I read a new story about the ever-expanding small dollar credit craze known as Buy Now, Pay Later (BNPL).

I’ve written about how one of the world’s largest retailers is getting in on the BNPL credit act.

Why is a Giant Retailer Building a Buy Now, Pay Later Business?

Today, I read about BNPL as a financial management tool — but also, as a way to trap people in a cycle of debt.

The story offers more detail on the use of BNPL for things like groceries, dining, and even coffee.

As Rocco Pendola notes:

• BNPL company Zip has experienced 95% growth in grocery purchases. More than half of the items Zip users finance are in the grocery or household category.
• Another BNPL player, Zilch, says groceries and dining out account for 38% of its transactions.

This tracks with other reports around the increase in use of BNPL for groceries: