Buy now, pay later holiday shopping spree could lead to financial hangover: Experts
BNN Bloomberg
Experts say buy now, pay later services could tempt Canadians during the holidays, but it's important to think about the financial hangover you could be setting yourself up for in 2023.
As inflationary pressures weigh on consumers, the Toronto-based international student and mother of three is one of many turning to buy now, pay later (BNPL) services this gift-giving season.
There's been an increase in activity in the BNPL space over the past year, said Payments Canada in its 2022 trend report, including vendor partnerships between tech companies and established BNPL firms, as well as the entrance of global payments providers, banks and other competitors.
BNPL splits up a purchase into several equal payments, with the first payment typically due right away. Many of these services don't charge interest or fees unless a customer is late in paying.
