New Zealand youth perception of ‘buy now, pay later’ services

Research from Auckland University of Technology indicates that many young New Zealanders do not perceive ‘buy now, pay later’ (BNPL) services as a form of debt. This perception may influence spending habits, as these services are often marketed as convenient payment methods rather than traditional borrowing.

BNPL providers such as Afterpay and Klarna allow consumers to make purchases through multiple installments. While these services often lack interest or establishment fees, providers generate significant revenue through late fees. The ease of approval makes these services accessible to those who might struggle to obtain conventional credit, but it also carries the risk of overspending and mounting debt.