ilmscore | Prediction Details
"let's think about this for a second if you went to the bank and you wanted to borrow money for 6 months would they give it to you for free no they're going to charge you interest why does the bank charge you interest because there's a cost on borrowing money so now if you use buy out pay later and they tell you that you have the 0% APR for a certain period of time how is it that they can give you this money for free and still be one of the most profitable or money-making cash generating Industries in fintech how does that make any sense well it's because the buy now payat companies know that if you go out and you buy something with buy now pay later with 0% APR the first thing that you're going to do is you're going to go out and buy more stuff because you don't feel any pain of seeing the $1,000 leave your account it's only $45 leaving your account month after month after month so now when you only see $45 leaving your account and you still got $955 in your account now you can go and buy something else maybe you go buy a new sofa maybe you go and buy a new TV maybe you're go and buy a new laptop because you still got some cash in your account so number one is you go and spend more things and this has been scientifically and mathematically proven which is why these buying out payor companies make so much money and then number two is they know that when you go out and you spend more money you're also less likely to pay your stuff off in time so now when you don't pay your stuff off in time what happens you get slapped with a brand new fine brand new fees and now you're not paying 5 or 10% interest now you're paying 25 to 30% interest on your buy now pay later or as I like to call it broke now broke later 0% APR financing"
By Minority Mindset | October 29, 2023 | Pending
From video
These Are Your Biggest Financial Mistakes (Achieve Financial Freedom In 2024) | Jaspreet Singh 00:36:01 - 00:37:41
Interpreted Prediction
Buy Now, Pay Later (BNPL) services, despite offering 0% APR, are highly profitable because they encourage increased spending by minimizing the perceived immediate financial pain. They also lead to higher interest rates (25-30%) if payments are missed, effectively becoming 'broke now, broke later'.

Prediction Details

Topic
Buy Now, Pay Later (BNPL) Risks

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