Part 3/8:
A primary concern with BNPL schemes is the tendency for consumers to take on more debt than they can handle. Since these are loans, failure to make payments on time can trigger late fees, which in some cases can be substantial. Studies show that approximately 40% of users at some point incur late fees, emphasizing how easy it is to fall into a cycle of missed payments.
Especially problematic is the fact that consumers often use BNPL for small, everyday purchases—such as food, coffee, or snacks—rather than significant investments. This can lead to multiple overlapping loans, making it difficult to keep track of repayment schedules, leading to missed payments and additional fees.