Buy Now, Pay Later is a rapidly growing consumer credit sector. Last year, it is reported, it was used in 3.6% of retail sales in the UK. Is it a panacea or a plague?
UK consumer borrowing spurts as consumers treat plastic like cash in their pocket. And the Bank of England fears banks may not be holding enough in reserve to cover losses when the inevitable defaults start to grow. But there is also a change in the psychology of card users.
It's good when some novel conduct comes up: it helps FCROs and others avoid terminal boredom. One that's appeared in Australia might not be new but it's uncommon enough to be interesting - and it's carefully designed to be difficult to spot as it takes place within the ordinary course of business. For those in "all-crimes" jurisdictions, it's something new to try to watch out for.
