Protect me from what I want • TechCrunch

O

Welcome to TechCrunch Exchange, a weekly newsletter about startups and markets. It is inspired by the daily TechCrunch+ column from which it takes its name. Want it in your inbox every Saturday? Register here.

Buy now, pay later is an attractive option for consumers, perhaps even more so in a recession. But with debt and inflation on the rise, perhaps the focus should be on companies that help keep borrowers from sinking into a hole. — Anna

The enduring appeal of buy now, pay later

I thought tougher economic times would create immediate headwinds for the buy now, pay later trend. I was wrong.

“BNPL is a form of credit that allows a consumer to break a retail transaction into smaller interest-free installments and repay over time,” and it’s “in the midst of rapid growth,” a report said. from the September Consumer Financial Protection Bureau.

More recently, the Financial Times reported that “demand for BNPL has exploded during the pandemic and has continued to grow, according to data from UK open banking fintech Snoop.”

It’s not just a Gen Z trend, the FT added: Demand “has grown across all age groups in the UK, including older people, who are finding themselves squeezed in by the cost crisis. life and need short-term credit”.