Buy now pay later apps like Klarna, Afterpay, and Affirm might seem like great products for consumers and businesses alike, but they come with a catch.
For consumers, these apps can help you pay for big-ticket items like a new mattress or television by breaking down the purchase into smaller, more manageable payments. However, these apps also come with potential late fees, high-interest rates, and subtle nudges to make you spend more than you can afford.
For merchants, these apps can increase customer conversion and bring you new business. Though they also come with fees that, on average, can be higher than typical credit card processing fees.
Below we’ll walk through in more detail how these buy now pay later apps work, as well as the full list of pros and cons.[Read more…] about Buy Now Pay Later Apps: What’s the Catch?