Editorials & Other Articles

You can use these apps to buy taco's. Financing a taco, now there is a concept.

Sure, if you pay on time, every time, they aren't terribly different than credit cards Banks hate you when you do this though. You are essentially using their money free for up to 30 days.

But banks still make 3% on those buys, as long as you don't have a cash back card, which people with poor credit can't get.

But these bnpl apps charge merchants up to 6% as a transaction fee, and up to 36% interest. This is pay day loan territory.

And that 6% isn't absorbed by the vendor any more than the 3% is They spread that out over all transactions since they can't charge a surcharge for using a particular payment choice.

So these apps end up costing everyone. And they are credit traps for users.