‘Buy now, pay later’ goes from niche to normal as young people use it for daily essentials

“Buy Now, Pay Later” (BNPL) is a financial service rapidly gaining prominence. Initially, it was primarily used for acquiring luxury goods or higher-end commodities, but nowadays, it is transforming into a normal method of payment even for everyday essentials. This scenario is particularly evident among the younger generation who find this payment method convenient and helpful in managing their budget.

As its name implies, BNPL offers customers the ability to purchase goods immediately and pay for them later, usually in installments over several weeks or months. It’s like a short-term interest-free loan and comes with different terms and conditions depending on the provider.

While this might seem like a beneficial service, it’s important to use it responsibly. Despite the convenience it offers, it can also lead to overspending and subsequent financial trouble if not managed well. Users must ensure they are able to meet the payment demands when they become due, to avoid debts and possible penalties.

Additionally, while using BNPL services for daily essentials has become more common, it is worth considering other personal finance options. This may include budgeting, saving, or using a debit card, which may help avoid potential financial distress associated with deferred payment services.

As with any financial service, it’s always crucial to read and understand the terms and conditions to ensure that there are no hidden fees or charges. BNPL can be an excellent tool for managing finances if used wisely and responsibly.