Buy now, pay later: redefining indebted users as responsible consumers

Abstract

ABSTRACT Buy now, pay later (BNPL) is a new, increasingly popular form of short-term credit used for everyday items. While critics are concerned that these typically unregulated products pose risks for financially vulnerable people, many BNPL companies argue their app-based products are more responsible than other forms of credit. In this study, I use Davis’ (2020) mechanisms and conditions framework of affordances and Light et al.’s (2018) walkthrough method to analyse how three popular BNPL products (Afterpay, Klarna and Zip) define responsible lending and spending. I argue these BNPL companies claim they are more responsible than credit cards because they are more inclusive and have fairer loan terms, and that these claims are made possible by the platformed nature of BNPL products. At the same time, these BNPL companies define responsible consumers as those who make their repayments on time. This redefinition of responsible consumption encourages increased spending and normalises the use of BNPL credit for that consumption. These products, which challenge traditional regulatory responses to consumer credit, are disproportionately used by lower-income families, who are increasingly reliant on credit for everyday purchases.