ilmscore | Prediction Details
"buy now pay later with the last couple of years is arguably the fastest growing sector in fintech they're crushing it they're crushing it I have not invested any money into buying on pay later apps because I don't believe in it however it's putting more people in the debt kind of the way that they work is you can buy something now and worry about the price later now the pitch to Consumers to people is well you don't have to pay any interest kind of like the housing market back in the day right it Rhymes it rhymes history Rhymes right but the whole idea that they say you don't got to pay any interest just pay it off for say 12 months or 6 months which doesn't seem like a bad idea why would I want to pay $1,000 for a laptop today if I could just pay it off in installments and not paying interest for the next 12 months well if that's the case why is it such a fast growing industry I mean no one's going to invest billions of dollars into something if they're not going to see any sort of financial return I mean they got to the most expensive kind of money is free money so if they're giving you money for free how are they going to make money from it well let where we dig a little bit deeper if you don't get past your if you don't pay it in your 12 months then what so that's the first part if you don't pay it off now you get slapped with a very very Hefty Hefty fine a very very Hefty fee where now you're paying a massive interest rate essentially like a credit card just acting like a credit card it's the same concept where you get a little bit of a grace period but the second aspect is if you want to buy a laptop for $1,000 and you need $1,000 to buy it well you got to have $1,000 but if you don't have to pay for it noway a month yeah you still have $1,000 in your bank account maybe 900 and now what happens I can go buy more stuff for 100 bucks a month that's $1,000 more and more and more so it allows people to spend even more to lock in all the stuff so you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday a year ago now a year ago and then if you can't pay it off in time because that's ultimately man you know their goal if you can't pay it off in time now you get slapped with all that interest all these fees and now you're the one that's got to pay it off"
By Minority Mindset | August 20, 2024 | Pending
From video
The System is Keeping You Poor - Here’s the Blueprint to Break Free 00:17:36 - 00:19:45
Interpreted Prediction
The Buy Now, Pay Later (BNPL) industry is rapidly growing in fintech. While marketed as interest-free installments, failure to pay on time results in hefty fees and interest rates comparable to credit cards. BNPL also encourages overspending by freeing up immediate cash flow, potentially leading to significant debt if not managed carefully.

Prediction Details

Topic
Buy Now, Pay Later (BNPL) Industry Growth and Risk

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