Singapore officials fret as Gen Z consumers take to ‘buy now, pay later’ schemes
- BNPL services allow buyers to spread out the cost of a purchase over a few months without interest fees, making even big-ticket items seem within reach
- Its growing popularity among young people is unnerving regulators and politicians who fear the apps prey on consumers who may be financially naive
Would that be by cash, card or a handful of equal payments over a few months?
“As someone who does strict budgeting on my monthly expenses, using BNPL gives me more flexibility and reasonableness in managing my cash flow,” Lee said. “It prevents me from overspending.”
Many officials in Singapore, though, are not convinced Gen Z consumers like Lee are spending wisely. The growing popularity of BNPL services among young Singaporeans is unnerving regulators and politicians who fear BNPL apps prey on 20-somethings who may be financially naive.
“Young adults without sufficient financial awareness can have access to credit lines before they have the necessary earning capacity,” said Cheryl Chan, a Member of Parliament from the ruling People’s Action Party, in an email. “This is an unhealthy trend.”
Among those sounding the alarm is the Monetary Authority of Singapore, the city state’s de facto central bank, which has launched a media campaign warning the payment methods may lead to debt and consumer credit risk.
