“That’s for future me to figure out”
By Farra Santoso
“That’s for future me to figure out.”
It’s a phrase many of us have said while putting off homework, saving money, or making decisions we don’t want to face right away. And, when we try our hardest to beat this procrastination, there’s a system built around it.
Say, I’m one of those performative males who so desperately want a Stüssy hoodie. They’re about $130 online, and I’m not sure I have that kind of money. But instead of needing to pay it all at once, I click a button and - voilà - it's split into four “interest-free” payments of $32.50. I walk away with the hoodie now and worry about the bill later. I don’t care what happened to the other $97.50, because all I know is that I secured a steal! Whatever I’ll have owed is for future me to deal with, right?
The Buy Now, Pay Later (BNPL) is constantly reshaping how young people shop. Once a niche service, BNPL is now everywhere, in sectors such as clothing and entertainment - and it’s changing how we think about money.
The earliest forms of BNPL started in the 19th century with installment plans for big-ticket items like furniture. Modern BNPL, a more instant and integrated option, emerged in the early 2010s with companies like Klarna and Afterpay. These platforms let consumers break down purchases into small installments with seemingly no strings attached, making expensive products feel much more affordable. Globally, the BNPL market hit over $20 billion in 2024 and is expected to keep rising. For retailers, it’s a dream come true: consumers are more likely to purchase when they see smaller upfront costs.
However, critics argue that BNPL encourages overspending because it’s easy to get caught up in big debts when the short-term gratification takes you away. Since many BNPL services bypass traditional credit checks, teens and young adults can easily accumulate financial responsibilities without fully understanding the risks.
The rapid rise of BNPL schemes touches a wide range of consumers. For teens and young adults, BNPL offers instant access to fashion and even food delivery without paying upfront. The flipside is financial vulnerability, where many underestimate how multiple “small” payments can snowball into unmanageable debt.
In developing countries, the impact is even more complex. BNPL gives an opportunity for low-income families to access basic necessities they could not otherwise afford. On the other hand, the limited financial literacy and weak consumer protection laws in these areas leave users especially vulnerable to hidden fees or debt traps.
BNPL is closely tied to consumer behavior. Behavioral economics shows that people have a “present bias” which means they value immediate gratification over long-term yields. Teens, in particular, are more likely to act on impulse because their decision-making skills only adapt later. BNPL feeds onto this vulnerability by reducing the perceived cost of the product, making it feel more affordable even though the total cost has not changed.
At the same time, BNPL affects supply and demand. Normally, demand depends on how much consumers are willing and able to pay. BNPL artificially boosts demand by lowering the upfront cost barrier, which means we see more buyers because consumers don’t need the full price on hand. For retailers, this yields higher sales, but the increased demand does not always match real income levels meaning that consumption may grow faster than people’s ability to pay. In the long run, this can distort markets because retailers raise prices or rely heavily on BNPL partnerships, while consumers risk overspending.
To make BNPL safer, governments could require clearer disclosures to prevent these hidden traps, and companies could set stricter spending caps. Schools can also work towards implementing financial literacy into their systems so that students truly understand the long-term consequences.
But it all starts with you. Before you make a purchase through the Buy Now Pay Later Scheme, you should ask yourself: would you still buy that item if you had to pay the full price today?
