Buy now – pay later, a payment formula increasingly widespread, especially online. But what exactly is “Buy now pay later” and what pitfalls can it hide? In recent years, Buy now pay later (BNPL) has gained ground as an alternative, fast and flexible payment method. It allows consumers to purchase goods and services by paying later or in installments, often without apparent interest. A solution that may seem advantageous but which, according to experts, presents numerous underestimated risks, particularly for younger and more vulnerable consumers and for people in fragile economic conditions.
Over-indebtedness and impulsive spending
The main risk associated with Buy now pay later is over-indebtedness. The ease with which a payment can be deferred encourages impulsive behavior and leads to a distorted perception of spending. When “light” purchases multiply, without an immediate outflow of money, the perception of the total amount to be repaid can easily get out of hand, creating difficulties in meeting financial commitments. According to European consumer protection authorities, many users are not fully aware of having contracted a debt. Unlike traditional loans, BNPL is not always perceived as a form of credit, and this undermines the ability to assess risks and consequences.
Lack of saving habits
The systematic use of “pay later” solutions can change saving habits, fostering a culture of immediate consumption. Instead of planning, people buy on impulse, without evaluating the sustainability of the expense in the medium-long term. For young people, still in the phase of economic literacy, this model risks undermining the acquisition of healthy financial habits. The same happens for people living in precarious economic conditions, without adequate income and with poor financial education, who believe they can afford more or less necessary expenses because of their inability to fully understand the consequences of this purchasing system.
Beware of fraud and limited protection
Another critical aspect concerns digital fraud. BNPL services, often integrated into e-commerce circuits, are exposed to risks of cyber fraud and identity theft. In some cases, consumers find themselves with charges for purchases never made or with accounts opened in their name without their consent. Moreover, since Buy now pay later services do not always fall within European consumer credit regulations, legal protection may be weaker compared to other payment tools.
Financial culture and awareness: the real protection
To face these risks, it is essential to promote a more conscious approach to money management. Understanding how Buy now pay later works – what it is, what it entails, how it is regulated – is the first step toward using it with care and responsibility. The Museum of Saving, the first place in the world entirely dedicated to financial education, offers programs aimed at children, teenagers, and adults to develop practical skills in planning and expense control. Only through greater awareness is it possible to avoid consumption traps and protect one’s financial well-being over time.
To learn more, discover the events and meetings organized by the Museum and stay updated with the latest news from the blog.
July 16, 2025