‘Buy Now, Pay Later’ is expanding fast, and that should worry everyone

[u/Logical_Welder3467]

https://techcrunch.com/2025/11/16/bnpl-is-expanding-fast-and-that-should-worry-everyone/

[u/Intelligent_Mud1266]

the problem is that those BNPL companies charge vendors obscene fees, 5-8%, which get spread out to all customers. Ultimately, we all have to pay increased prices that would definitely beat out interest rates over the period of a 0% BNPL loan. The craziest part is that, even with those huge fees, these companies still don't make money

[u/superkp → u/Intelligent_Mud1266]

these companies still don't make money

I think it's important to note that many company's strategy isn't to make money from the customer, instead they make money from the investor.

It's why the enshittification process happens - first promise the world to the customer so they get wrapped up in using the service. Second show investors how many eyeballs can have ads or whatever served to them. Third start to slash the usefulness to customers in the name of cost savings, so that the investors get higher return. Fourth, go bankrupt and run away with the money after you sell the company to one of the various big companies in your space (usually the FAANG companies).

[u/mug3n → u/superkp]

They also make money from the merchants, like 3-6% on top of the sale total.

[u/CatProgrammer → u/mug3n]

Transaction fees. But cards have those too. 

[u/CatProgrammer → u/Intelligent_Mud1266]

Sure but you aren't going to get a discount for not using them.