![]() I think there's a time and place to use finance, and in my opinion, mine was the perfect opportunity to use it for my own gain. Seemed to me like a no-brainer so I've taken it at £30 a month for 47 months, and the £1500 has gone into a (Crypto) savings account at 6%(recently decreased from 10%) If it stays at 6%(compounding quarterly) over that time it'll earn just under £400 over those 4 years even if it drops to 2% it'll earn £120 in interest. I could've paid that all in one-go as I've been saving up for it, but I got to checkout and I saw an option for 4 years at 0% finance. On that note, last week I bought a new road bike (finally, I've been wanting to upgrade for 2 years but everywhere had a 6 month build time) for £1500. I'm 29 and it does seem as if in the last few years it has become massively widespread like with some of the places you mentioned. We’ve just recently reached mass adoption (undoubtedly helped by COVID and rise of e-commerce) To answer your question directly, yes BNPL is reasonably new in the mass market sense, but it’s one of those overnight success that has been years in the making. While it’s not a direct comparison of data, we can see that BNPL is predominantly used by those with fewer credit cards (50% of gen z, 54% of millennials, compared to 37% of gen x, and 23% of boomers).īasically it’s a “same same but different” unsecured borrowing product that is easier to manage (from a UX point of view) and has significantly lower barriers to entry.īoth cards and BNPL have benefits and drawbacks. However this split is not even, and it’s interesting to compare BNPL with the dominant form of unsecured credit - the credit card. To put it into context, TSB research has shown that 18% of UK adults use it at least once a month, 11% once a week. To me as a customer that has provided nothing but benefit. Maybe 3 extra clicks in the buying process. I was going to buy the sofa outright, but then I just had the option at checkout to have it charged in 7 equal installments instead. Personally I bought a sofa on it and thought it was great. So the ethics question becomes is it immoral to simply offer the option that may tempt customers into overspending? The business is built on payment transaction fees and on charges levied on retailers - basically you're paying for it whether you use it or not, as the retail price offered to everyone now covers the fees the retailers pay the BNPL providers. So there is genuinely no incentive for predatory lending - they do not want customers who don't pay. There is no interest, and penalty charges do no make the BNPL companies any money (they just cover some of the massive admin costs that come up with missed payments). It's an odd one as the business is not built on interest or charges. It's sort of the same as what used to exist, except the economics of it behind the scene are very different. It's exploded as there's a few providers now providing full shopping cart integrations for retailers, with their BNPL options built in. Look for Chartered and/or Certified Financial Planners: Treat any information, recommendations or "advice" that you read here with caution and always do your own research.įor financial advice, consider seeking out a professional. ![]() This subreddit is not a source of regulated financial advice. Overwhelmed? Start with our Recommended ResourcesĮxchange Rate and Market Timing Questions (and why they're banned) Important Information Speak to StepChange, a debt-management charity, or Citizen's Advice Useful Resources Official UKPF Discord Server - Discuss your pounds and pence in real-time. Only the thread poster and mods can use the !thanks command Discord ![]() You will see a £x flair by regular commenters' names - this is the number of times they've been thanked for their comments. If you post and a response helps you, please reply to their comment with Also, have you seen the flowchart? Reputation System Please search our wiki first, it answers many common questions. You can find out how to get the most out of our subreddit First time poster? Discuss, learn and request advice on how to obtain, budget, protect, save and invest your pounds and pence.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |