Caution urged as BNPL plans increase in popularity
Since being introduced in Canada, “buy now, pay later” (BNPL) plans have become increasingly popular as an alternative to the use of credit cards that require a credit check. However, many industry leaders warn of the dangers that come with the use of short-term loans for consumers.
Co-head of the firm’s Consumer Protection and Fintech groups Brigitte Goulard told Yahoo Finance Canada in an interview that its accessibility has helped to fuel the popularity of BNPL, giving people the false impression that they have access to free money.
"It can make it very easy to borrow money, without giving the chance for consumers to consider the consequences of entering into that commitment," she said.