A story about BNPL providers (Afterpay, Affirm, etc.)

From the “'Buy now, pay later' is sending the TikTok generation spiraling into debt” story:

This new breed of lending firm bills itself as a friendlier, more responsible way to spend than credit cards; in an interview with SFGATE, an executive from industry leader Afterpay even suggested the loans are just a way to budget better.

The marketing pitch is certainly working. In 2021, Americans spent more than $20 billion through buy now, pay later services, an ever-increasing chunk of the $870 billion-a-year online shopping pie.

In California alone, 91% of all consumer loans issued in 2020 — defined by the California Department of Financial Protection and Innovation as loans for “personal, family or household purposes” such as car, utility or medical loans — were buy now, pay later loans, also known as point-of-sale loans. 

Gen Z, in particular, has fallen in love with the short-term loans, spending 925% more now through point-of-sale services than in January 2020.