Articles by Lotte Schou Zibell
The Benefits – And Downsides – of ‘Buy Now, Pay Later’: Is it Enhancing or Hindering Financial Inclusion?
Buy now, pay later (BNPL) schemes offer consumers immediate possession of goods, which they pay for over time via (usually interest-free) installments. According to Sarah Corley at the Alliance of Digital Finance Associations and Lotte Schou Zibell at the Asian Development Bank, BNPL can expand financial inclusion and access to consumer goods in emerging economies – but by offering easier access to credit, it also presents some pitfalls. They discuss the growth of BNPL, its benefits and risks, and some key practices that can maximize its positive impacts while avoiding potential downsides.