One of the biggest trends in the last 5 years has been the ease at which you can make a purchase and pay later via monthly installments; firms like Klarna, Laybuy and Clearpay all work with retailers to allow customers to buy items but finance them at the time of purchase; the idea behind the process is customers are willing to buy more if they do not have to PayU the full rate now; this has also led to less returned items for retailers, Klarna and Afterpay both say that returns dropped by 20 percent; there is a growing concern that this will only lead to more debt for customers and therefore put them in a similar position to other credit products; many of these fintechs will not allow customers to keep buying if they defaulted as they try to ensure responsible borrowing; this trend is only increasing with many of these services now available in physical locations alongside their online presence. Source.
