Alternative Metrics, page-4955

What's the point of a 'land grab' when their are no barriers to entry and no profits to be made? The only plausible reason for doing it is to artificially boost revenue (and the share price) by signing up high risk customers.

If you look at the research by the UK Financial Conduct Authority you will see that BNPL is mainly used for discretionary spending by low income young women. So the 'budgeting tool' argument is a myth. It is just another line of unsecured and unregulated credit that is being widely abused by consumers. Over 10% of UK BNPL accounts are now in the hands of debt collectors. In Australia 15% of APT users have had to take out secondary loans to pay their debts. In fact credit stacking (using CCs to pay BNPL) is so rife that Capital One (62 million US customers) banned the use of it's CCs in conjunction with BNPL.

BNPL debt is so toxic (30% of revenue) and with such low recovery rates it is being bundled and sold like the NINJA hosing loans were before the 2008 GFC.


https://www.*.com/capital-one-bans-bnpl-payments-on-credit-cards-2020-12?r=AU&IR=T