Mercari faces criticism over Merpay Smart Money lending model

Mercari's financial service, Merpay Smart Money, has faced intense online criticism regarding its business model and ethical implications. Critics have highlighted a cycle where users borrow money at an 18% annual interest rate, then sell personal belongings on the Mercari platform to repay the debt.

This process allows the company to collect both interest on the loan and a 10% sales commission on the items sold. Observers have expressed concerns that this mechanism creates a self-sustaining loop of debt and consumption, leading to accusations of predatory practices and a lack of corporate ethics.