Monzo to enter Buy Now, Pay Later market

Not according to the third video/gif in that opening post.

Pay Extra, reduce interest applied.

Take another look. See if you agree.

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Yes, that video shows you getting an interest refund when you make an extra payment.

I read on altfi that one in ten bnpl customers has been chased up by a debt collector, which is pretty sobering, if true.

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If its too good to be true, it probably is. Klarna refuted Wonga comparisons due to their ‘checks’. Checks no more stringent than an insurance quote let’s be honest…

I’ve seen it completely ruin the finances of those on low income, or those who have already demonstrated a poor ability to manage debt. Klarna et al are appearing on Debt Management Plans that I see now, that says all you need to know. There’s a difference between extending services to who are underserved and monetising them to their own disadvantage.

Monzo have a lot of low income users who’s circumstances aren’t akin to those on the forum, time will tell how they manage this (and Revolut, when it comes there).

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A couple of people seem to getting rejected or very low limits. So there clearly is some thought gone into it.

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Sure there is, and also a point of clarification from me.

Often the customers I see in difficulty have payments outstanding with:

Zilch, Klarna, ClearPay, Laybuy (for instance) in tandem. Its not always one company overloading them. This is where the issues really seem to lie, fine in isolation but are they picking up on where the customer has other existing BNPL debt?

Perhaps it going into a bank will help, let’s see…

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The whole thing makes me cringe a bit. I guess it’s because I just don’t do that sort of money management.

There are times when it does work to the consumers advantage.
(As long as you do your research)
For example, in the last 4 years I have bought 5 phones direct from Samsung and payed by PayPal credit (0% interest)
By going through a cashback site as well, I have got an average of 10% of the purchase price back too.
The money I’m not spending sits in a savings account and I do get interest too, albeit a pittance at the moment.

I also traded in my last car because the dealer was offering 0% finance, so it was actually cheaper to buy a brand new car than it was to keep the 2 year old one.

I agree with others though that it should never be used to live beyond your means.

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MasterCard are entering the BNPL arena with a 4 month interest free option

The article is pretty light on details, even though it talks as if this is already live

No doubt it’s based on the press release at Mastercard Reinvents Installments To Give Consumers More Payment Choices Wherever They Shop and Mastercard Installments - A Buy Now Pay Later (BNPL) Program

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No interest free period though it seems

So no benefit over their existing system then? Why would anyone opt for this? Amazon’s standard 5 instalments offer is one of the best BNPL offers in the industry that I’ve seen in all honesty.

Still think the Amazon pay in several goes interest free is better.

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What’s funny is they offer different things on different purchases, but I’d never use the Barclays one

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Do you think BNPL is taking over credit cards? https://www.emarketer.com/chart/248217/us-buy-now-pay-later-bnpl-user-penetration-by-generation-2018-2025-of-digital-buyers-each-group

Personally, yes. No EAR etc. Pay it off over smaller time periods but you don’t pay anything and the brand pays the company (Klarna etc) directly