Purchases in installments, the new trend in Romanian commerce. “Buy Now, Pay Later” services are changing young people's relationship with money
When debt comes wrapped in “nice” notifications, “friendly” interfaces, and the promise that you can have it all now, the financial risk starts to seem almost invisible. This is exactly what a study on “Buy Now, Pay Later” (BNPL) platforms shows: paying in installments has become so natural that more and more young people forget that they are actually getting into debt.
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“This system has become a real trend in Romanian commerce, and that's because the solution is an optimal one: you take the product on the spot and pay it in 3 or 4 installments, most of the time without interest. But, under this attractive packaging, BNPL profoundly changes the way we relate to money and debts”economic analyst Adrian Negrescu explains for “Adevărul”.
For example, when you use a classic credit card or take a loan from the bank, you clearly know that you are incurring a debt. BNPL, on the other hand, is promoted as a simple way to “manage your budget,” he says.
“When you see a pair of shoes for 600 lei, your brain perceives a large expense. But when the system proposes that you pay only 150 lei now (the first installment), the price suddenly seems much lower and easier to accept.” supports it.
This decoupling of the product from its actual price reduces the psychological “pain” of paying, encouraging impulse buys, he adds. “Furthermore, unlike a credit card, which requires approvals and proof of income, BNPL gives you approval instantly, directly in the online shopping cart. Because of this, young people are much more vulnerable. The danger does not come from a single purchase. The problem arises when you collect several small installments (for example: 100 lei for a t-shirt, 150 for sneakers, 50 for a game)”, adds Adrian Negrescu.
In his opinion, all of these “micro-debts” it adds up month after month, and when we draw the line, we may find that the rates exceed the available budget. “Furthermore, young people's lack of financial experience makes them miss the moments when they have to pay, when the penalties come in. Unfortunately, many Romanians fall into the trap of applications of this type because they are specially built to make you buy more, using all kinds of tricks, from messages like “There are only 2 products left in stock” or timers that tell you that the offer expires, rushing you to make a decision to all kinds of clever stratagems”the analyst believes.
For example, some platforms give you loyalty points or virtual badges if you use their service. “Thus, the act of incurring a debt is turned into a kind of game (gamification), hiding the real risks. The problem, from a credit risk perspective, is that many BNPL platforms do not report to the Credit Bureau. Thus, a person can be over-indebted on such platforms, but in the eyes of the bank, he appears to have a clean financial history.” he adds.
It is certain that if more and more young people get used to living off BNPL, the impact could be major, the specialist draws attention. “Today's generation is at risk of becoming dependent on credit for everyday purchases. This means they will have a harder time putting money aside for savings or a down payment on a house, always being caught in the cycle of previous months' payments. In addition, an over-indebted generation is much more sensitive to any financial shock, such as job loss.”emphasizes Adrian Negrescu.
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What the study actually shows about BNPL services
A study published in the Journal of Cultural Economy, titled Buy Now, Pay Later technologies and the gamification of debt in the financial lives of young peopleconfirms that these services are not just an alternative payment method, but a mechanism that changes the way young people perceive debt. The research was conducted in Australia on 48 young people between the ages of 18 and 30.
The main conclusion is worrying: BNPL platforms manage to make debt seem “easy”, “friendly” and almost informal. Unlike banks, perceived as cold and bureaucratic, type applications “Buy Now, Pay Later” they use simple interfaces, attractive colors and friendly notifications, inspired by social networks. The effect? Users no longer feel that they are actually doing a duty.
And that's because the platforms carefully avoid the word “credit”. Instead of “loan” or “debt“, he prefers formulas like “simple payments”, “easy rates” or “flexibility”. Many study participants testified that, at first, using one of the apps even gave them a sense of financial security. The problem comes later, when the payments add up and anxiety strikes.
Researchers also talk about a process of “gamification” of the debt. Apps take the logic of digital games and apply it to the financial realm: notifications, rewards, anniversary messages, activity summaries, and incentives to keep using their service. Instead of treating debt as a serious obligation, the platform turns it into an almost playful experience that reduces the perception of risk.
For example, certain applications “award” users who have paid their installments on time by offering them higher spending limits. In practice, this does not mean that the person is in a better financial situation, it just means that they can get even deeper into debt. What is presented as a reward becomes, in reality, an additional source of risk.
It is equally relevant “fluidization” relationship with credit. For many of the young people who participated in the study, BNPL seemed simpler and less intimidating than a bank, precisely because everything happens over the phone, without difficult conversations and without trips to the counter. The easier it is to access, the easier it is to ignore the danger.
Interestingly, young people are not completely naive, the researchers pointed out. Many participants have noticed for themselves that apps try to grab their attention and get them to spend more. And yet, even when they know they're being manipulated, the friendly interface and sense of being in control make the service hard to turn down.
The conclusion of the research is that BNPL platforms not only facilitate shopping, but normalize debt in everyday life. Users, especially young ones, tend to see borrowing as a natural extension of consumption. And this change in mentality can have serious long-term effects, especially in the context where low wages and high living costs are already pushing many young people towards quick financial solutions.
