Today Karl O’Callaghan spoke to the CEO of The Retail Solution Roger Simpson about the traps of using “buy now, pay later” providers such as Afterpay.
These types of services mean people can purchase an item, take it home and pay for it later in installments. This is unlike lay-by, where the item stays in the shop until it is paid for.
A chunk of the revenue in this highly unregulated industry comes from late fees. In a time when people want instant gratification, these types of “buy now, pay later” services can be dangerous.
Roger discusses with Karl some of the challenges with this fairly new payment system, which has been growing dramatically over the past year or so. Should there be regulation to stem the flow of customers who sign up and then fall behind in their payments?