Consumer Watchdog Warns of "Buy Now, Pay Later" Risks, Debt for Vulnerable
The CCPC warns that «buy now, pay later» schemes encourage consumers to buy unaffordable items, especially impacting vulnerable individuals. Global usage surged sixfold from 2019-2023, with many not realizing it is a credit form, leading to increased debt and unplanned spending.
The Competition and Consumer Protection Commission (CCPC) has voiced concerns over the rise of «buy now, pay later» (BNPL) schemes, warning they enable consumers to purchase unneeded and unaffordable items. CCPC Chairman Brian McHugh told the Oireachtas finance committee on Wednesday that BNPL’s increasing popularity poses problems, particularly for financially vulnerable consumers who are more likely to use these schemes.
McHugh noted that BNPL products, unlike traditional installment payments, are used for minor daily purchases and promoted as financial management tools. He highlighted a sixfold increase in global BNPL usage between 2019 and 2023, with Central Bank research indicating that up to a third of Irish consumers do not recognize BNPL as a form of credit. These services often lead consumers to buy more than planned and are disproportionately used by those already financially vulnerable. The CCPC continues to warn of these risks and collaborate on financial literacy efforts.