PAYMENTS
In the 1970s , mail-order catalogues became popular because , during a period of dismal economic depression , they enabled customers to order multiple items on tick , have them delivered to their door , and pay the bill in bite-size instalments . Sound familiar ?
Like all new trends , this came with teething problems – including a large number of customers who ordered far more than they could realistically pay for . Debts to catalogue companies soared , while the credit ratings of the younger generation predictably dipped .
Half a century later and on the tailend of increased online purchases , BNPL appeared at the checkouts of millions of ecommerce outlets and instantly began to trend . Like a magic bullet payment solution , given at a time when global populations were placed
“CURRENT ECONOMIC HEADWINDS AND THE PANDEMIC PLACED REAL BURDENS ON THE FINANCES OF MANY , BUT APPETITES FOR CONVENIENCE AND CONSUMER GOODS HAVEN ’ T WANED ”
AMIR NOORIALA CHIEF COMMERCIAL OFFICER , CALLSIGN
under enforced lockdowns as a result of the pandemic , it ' s hardly surprising that BNPL ’ s usage skyrocketed .
But along with this came the same , age-old problems associated with free and easy credit : despite five decades having passed , lack of regulation in terms of lending has resulted in debt once again visiting a generation of enthusiastic young shoppers .
Encouraging a culture of impulsive buying , BNPL services have conclusively been found to fuel personal debts . A recent report from the UK-based ewallet fintech HyperJar revealed that 25 % of the debts accumulated by millennials are due to BNPL schemes .
Easy credit boosts toxic spending Amir Nooriala , Chief Commercial Officer at Callsign , says the temptation to take