>> If you spread out non-essential purchases into multiple payments to shoulder them then you maybe shouldn't buy it in the first place.
There's nothing wrong with managing your cash flow in this way provided you're not stretching yourself to the point where getting into debt is a possibility. There are plenty of expensive things I could buy now where I would rather spread the payment over a few months for better cash flow. Klarna is, in my opinion, very different from payday loan services. Payday loans are offering cash at very high interest rates, and the only people who need cash that badly are people struggling to pay rent/pay for some emergency. That's very predatory. Klarna is very different. Sure you could get into debt through it if your reckless, but it's much less predatory.
Typically BNPL companies like Klarna take a cut from the merchant as well. The idea is to increase volume for the merchant through psychological trickery, resulting in a net increase in profit even after the BNPL company's cut.
I mean that's just how credit works right? Either you pay a certain amount of interest or there are late fees. Payday loans you typically pay back the sum + a large (10+%) amount of interest even when borrowing for as little as one week and paying back on time. Hugely more predatory. They're seeking out people who need cash and have no other option.
There's nothing wrong with managing your cash flow in this way provided you're not stretching yourself to the point where getting into debt is a possibility. There are plenty of expensive things I could buy now where I would rather spread the payment over a few months for better cash flow. Klarna is, in my opinion, very different from payday loan services. Payday loans are offering cash at very high interest rates, and the only people who need cash that badly are people struggling to pay rent/pay for some emergency. That's very predatory. Klarna is very different. Sure you could get into debt through it if your reckless, but it's much less predatory.