When I first saw headlines such as “Americans using ‘buy now, pay later’ plans to buy groceries, survey finds,” my instinctive reaction was: isn’t this just business as usual? Only after reading the article did it strike me—this world is dafter than even my most cynical estimates.

As a financial innovation, Buy Now, Pay Later (BNPL) certainly holds a certain appeal. It allows consumers to acquire goods and services immediately, with the payment split into later instalments—a model that’s taken the worlds of e-commerce, travel and even dining by storm in recent years.

But as always, there’s no such thing as a free lunch. In the end, the cost falls on consumers. In order to make a profit, BNPL providers rely on two main avenues: charging merchants fees higher than those of traditional payment services, and slapping late fees on delinquent customers. At its core, BNPL exploits a psychological trap—minimising the “pain” of paying in the moment, thus encouraging more spending. This is precisely why so many merchants are eager to shoulder those higher fees for BNPL integration.

To be clear, I have nothing against BNPL—I’m an avid user myself. My phone was purchased through a 24-month interest-free instalment plan with JD.com; at the moment, I’m only six payments in. Most of my day-to-day expenses go through Huabei (a Chinese BNPL solution) and are automatically settled from my savings or bank account. When a platform truly provides a genuine interest-free or “zero-fee” offer, BNPL becomes an opportunity for free leverage—it’s a costless way to put someone else’s money to work on your behalf. In simple terms: the financial provider pays for your consumption, letting your own cash sit untouched, potentially earning a modest return elsewhere. Financial efficiency, maximised.

However, there are three absolutely critical prerequisites:

1. Pay on time, every time—no excuses;
2. Never fall into habitual overspending;
3. Maintain at least basic financial literacy and management skills.

Contrast this with what the headlines are pointing out—“Americans using BNPL for groceries.” Skimming the survey data, I saw that one third of BNPL users have missed at least one repayment?? Some even defaulted on takeaway orders??

The ideal is promising, but reality bites hard. Data shows that the number of people with poor financial self-management is greater than I had imagined. 46% of BNPL users already carry existing credit card debt, and among them, 28% are aged just 18-24¹. This demographic typically has weaker credit, with 63% juggling loans from multiple BNPL platforms simultaneously²—a glaring sign of questionable spending habits.

What’s even more concerning is how BNPL, by design, appears particularly seductive to individuals with poor financial discipline. Compared to credit cards, approval is instant and the credit barriers are low, all the while trumpeting “interest-free instalments.” For many, BNPL feels like an inexhaustible source of easy money—buy what you want today for a small upfront payment, and worry about the rest later. But, needless to say, the world does not work that way.

Inevitably, the day of reckoning comes. As bills mount, many are shocked by the size of their accumulated debt. Missed payments lead to late fees and penalties, which quickly snowball. Add on steep merchant charges, and it’s little wonder BNPL providers are making a killing.

To reiterate: I am not against BNPL. As a free financial lever, it’s simply common sense to take advantage of it. For instance, when I bought a £429 phone, I could have paid it off in full straight away, but I opted for a 24-month interest-free plan. The point is, I am fully aware that I have advanced the total purchase price, not merely spent £17.87 per month. This is reflected in my accounts as an immediate reduction in assets, so my net worth accurately includes the liability. Live within your means, avoid piling on unnecessary debt—or, worse, layering leverage upon leverage. Even if idle funds only generate minimal returns in a savings or low-risk investment account, this keeps my finances healthy and ensures I’ll never default. While a modest bit of borrowing can enhance quality of life, solid financial habits are always more prudent when your income isn’t rock-solid.

Still, such warnings will do little to sway those long accustomed to unhealthy spending. Even without the alluring convenience of BNPL, these individuals would almost certainly max out their credit cards and then flounder, sinking beneath 20% APRs.

The problem isn’t BNPL itself (it’s just another tool), but the underlying disconnect: fragile finances on one side and runaway consumerism on the other. For those who lack self-control, underestimate financial risk, or whose circumstances are already precarious, any easily accessible credit—whether credit cards, BNPL, or the far more dangerous payday loans—serves only as a different route to the same pit of debt. BNPL’s particular twist is its ease of access and immediate gratification, meaning those on the edge tumble even faster—and crash that much sooner.

A sizeable portion of BNPL delinquents are already mired in credit card debt. This suggests a robbing-Peter-to-pay-Paul cycle, borrowing from one source to stave off another, ultimately piling interest upon fees and sinking into ever-deepening crisis. Even if BNPL vanished tomorrow, these vulnerable consumers would likely stumble into other financial traps, whether it’s payday loans or some new “convenient” scheme. In the haste to stave off disaster, some might even resort to pawning off family heirlooms.

So the real concern isn’t any one financial product, but the underlying structural malaise: economic pressures, the omnipresence of consumerism, inadequate financial education, and the widespread prioritisation of instant gratification over long-term planning. The rise of BNPL merely makes these chronic issues more visible—sharper and harder to ignore.

In the end, if we truly want to “save” these individuals, simply restricting access to financial products (be it BNPL or credit cards) is merely treating symptoms, not causes. The real solution—if there is one—lies in tackling the roots: boosting earnings, improving financial literacy, and reshaping spending norms. But these foundational changes are far harder than wishing BNPL companies would simply shut up shop.

One last piece of advice: borrowed money always needs to be repaid; don’t make needless offerings to financial middlemen.

Alas, all told—the world really is more foolish than I had ever imagined.