The dark side of Buy Now Pay Later apps

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=fYM0eLvds1g

Think twice before using Buy Now Pay Later apps. (Timestamps below) There are no free lunches. Find out how expensive it is to offer (for a merchant), how that can increase prices, and how using other methods to pay might be better for you (and also for lower income households!) • NEW: See the follow up to this video for even more downsides to BNPL • • New Risks of Buy Now Pay Later in 202... • ***Correction: As pointed out by the (great) blog Michael James on Money , I should have factored in that the BNPL company collects a riskless $25 payment upfront. So really, they lent out $69 over 6 weeks. That increases the effective APR on their loan from 55% to 76%. For a more detailed look, visit: https://www.michaeljamesonmoney.com/2... • 00:00 What are Buy Now, Pay Later companies? • 00:46 Example of a Buy Now Pay Later transaction • 01:12 How do these services make money? • 03:10 How much does it cost the retailer? • 05:05 How lower income households subsidize richer households • 08:30 Is using a regular credit card transaction better? • 10:09 What's the ideal way to pay for discretionary expenses? • 11:09 Delinquency rates for credit and Buy Now Pay Later • 11:35 How much revenue do missed payments generate? • Resources and links mentioned in the video: • How lower income households subsidize the rewards programs of wealthier households: https://www.nytimes.com/wirecutter/mo... • Factoring Accounts Receivable: https://corporatefinanceinstitute.com... • Credit Card Competition Tribunal in Canada: • 1: https://www.cbc.ca/news/business/comp... • 2: https://kitchener.ctvnews.ca/competit... • How to calculate APR on short term loans: https://consumerfed.org/pdfs/AAAPL-Ho... • How to calculate the interest payable on a credit card: https://corporatefinanceinstitute.com... • WATCH MORE OF MY MOST POPULAR VIDEOS: • When does renting make more sense than buying a home?: • Renting versus Buying a home | Which ... • How to calculate your Net Worth: • How to Calculate Your Net Worth • How to find more money to save: • How To Find Money To Save Without Kil... • PODCAST: • Mostly Money - A deeper dive on all things money: https://www.buzzsprout.com/5821 • ABOUT ME: • I've hosted a personal finance TV show on the Oprah Winfrey Network, used to be a stockbroker, went to school to become a racecar driver (failed), founded a fintech company that provides financial planning software to financial advisors who want to help more people who don't have lots of money, and I consult with wealth management companies on commercializing applications of behavioral economics/finance. I'm also quite fond of donuts. • SUBSCRIBE FOR MORE VIDEOS LIKE THIS: http://www.youtube.com/user/preet182?... • MY BOOK TO LEARN ABOUT THE BASICS OF PERSONAL FINANCE: https://www.amazon.ca/gp/product/0143... • FOLLOW ME ON TWITTER • / preetbanerjee • WEBSITE: http://www.preetbanerjee.com • #MoneySchool #PersonalFinance #LearnAboutMoney #LearnToInvest #money #stockmarket #finance #howtoinvest #budgeting #budget #savemoney #insurance #financialplanning

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