Buy Now Pay Later (BNPL) schemes are relatively new in the retail credit space but are making their significant presence felt in the supply market for retail credit – and also for unwary consumers.
In short, BNPL provides immediate credit for retail purchases, allowing the consumer to defer immediate payment to (usually) four subsequent fortnightly payments. The attraction of the system is that there is no extra cost to the consumer – the credit is funded by the retailer paying a merchant fee and by fees being payable to the BNPL provider on late payments.
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