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Comment by phist_mcgee | Hacker News Reader

You sound like a BNPL marketer. The loan has late fees, the app is branded as a easy POS way to buy things with money you don't have. There is no credit check. You can sign up to a dozen of the services at once. It is credit, it has the same negative effects as credit.

BNPL is as bad for people as 20% apy credit cards are.

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Right. They are giving out interest free loans to people out of the goodness of their heart. What a swell company. Wait what? They make more profit when people fuck up? Well I am shocked.

Being more charitable, I think it's marketed as a way for people who budget monthly to spread their charges.

The point is that if they're stretching payments over multiple weeks/months then they can't afford it.

Would you say the same about a house? A car?

You might say that buying a house on credit isn't frivolous but a pair of shoes on credit is, but where do you draw the line in the middle?

(Disclaimer: I work at Square, but I am otherwise completely uninvolved with this acquisition or product area.)

Great question and made me think. I think the difference may be that people that need to stretch payments for smaller purchases tend to build up credit card debt and fall into 18% APR for years and never get out of it.

Car loans and Houses have a very controlled lending market. Even more so with business loans.

I think there is big difference between monthly payments for a Go Pro camera and debt financing your new restaurant.

What is your logic behind that?

the business model is that BNPL will eat the risk, they won't sent a debt colector after you, they simply won't loan you more money. It's much more humane than credit score which is a form of social credit.

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