About 40% of young people do not view the popular "buy now, pay later" service as a full-fledged loan, infohub.kz reports.
According to Phys.org, the popularity of buy now, pay later financial services is growing rapidly among young shoppers. However, experts are expressing serious concern over consumers' casual attitude toward such obligations. A new study found that 40% of young respondents see installment plans more as a convenient payment feature than as a real financial loan.
The use of short-term installment plans attracts buyers with no complex bank checks and quick processing directly in online stores. At the same time, many consumers forget that missed payments lead to penalties and can seriously damage their credit history. Experts note that blurring the line between a regular payment and a loan leads to impulse purchases and the accumulation of hidden debt obligations.
Researchers are urging financial regulators and educational institutions to more actively improve financial literacy among young people. According to specialists, digital platforms must warn users about all risks. Transparency of terms will help young people plan their personal budgets more responsibly and avoid falling into debt traps when shopping online.