 Buy now, pay later (BNPL)...on your credit cardBenedict Guttman-Kenney, Chris Firth and John Gathergood Journal of Behavioral and Experimental Finance, 2023, vol. 37, issue C Abstract: We provide the first economic research on ‘buy now, pay later’ (BNPL): an unregulated FinTech credit product enabling consumers to defer payments into interest-free instalments. We study BNPL using UK credit card transaction data. We document consumers charging BNPL transactions to their credit card. Charging of BNPL to credit cards is most prevalent among younger consumers and those living in the most deprived geographies. Charging a 0% interest, amortizing BNPL debt to credit cards – where typical interest rates are 20% and amortization schedules decades-long – raises doubts on these consumers’ ability to pay for BNPL. This prompts a regulatory question as to whether consumers should be allowed to refinance their unsecured debt. Keywords: BNPL; Buy now pay later; Consumer credit; Consumer financial protection; Credit cards; FinTech; Household finance; Regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:37:y:2023:i:c:s2214635023000023 DOI: 10.1016/j.jbef.2023.100788 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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