Nearly a third of 18-34-year-olds do not realise that they can get into debt using buy now pay later (BNPL) services, a report has found.
A survey by loan provider Creditspring found that 14% of those aged 18-34 have used BNPL to pay for services and goods, with 34% of those saying they use it once a month.
BNPL, which lets consumers pay for items in installments, has soared in popularity in recent years. Globally, BNPL purchases surpassed $120bn last year, fuelling the growth of providers such as Zilch and Klarna.
However, there has been growing scrutiny of the sector amid concerns that BNPL encourages consumers to spend beyond their means. While some services don’t charge interest or late fees, 14% of the respondents said they were not aware they could be charged for late repayments....