Have you been paying attention to the payment options while online shopping? There are the regular options like Visa, Mastercard, American Express, the usual, but now an even stranger option has popped onto the seems: Klara, and Afterpay, or better known for the slogan: buy now pay later.
Loans have been a part of society since the very beginning, since the first human civilization of Mesopotamia. Typically, you’d expect to only ever require a loan for something like buying a house, or buying a car, or even remodeling the family living room but now in the day and age of 2025, there are other things you can technically pay for in installments.
Remember that Chipotle Burrito you had for lunch? It can actually be paid for in a “loan” of 3.25 every month for the next 4 months. Even a Costco Hot dog, which alone in 1.50$, can be paid in 0.38$ every month until you’ve successfully paid it off. It’s obvious that there really is no need for payment plans as such, so why does society even do it?
Klara started in about 2005 in Stockholm, Sweden, but reached the global stage in about 2022 when it was bought out by Block Inc, focusing on e-commerce, and the infamous term buy now pay late took the world by storm.
Initially, these companies gained popularity, allowing users to focus on budgeting and buying products without needing to pay for it immediately, but quickly became a leading force of heavy debt and abuse. Similar to credit cards, it relies on payments in the future, enforcing a mindset of “it’s a problem for future me.” Unlike credit cards, Klara and Afterpay don’t have heavy late fees simply, users’ accounts are simply paused until dues are paid quickly, garnering attention from younger shoppers like Gen Z.
Buy now pay later does offer benefits like improved cash flow, especially it would help student workers who are struggling to afford groceries and simple and fast approval. The predictable schedule allows for ease in financial hit, yet even the benefits are becoming a second wall to crash into.
What happens is the population of the younger generations such as Millennial and Gen Z simply buy way too many items using this process, and that adds up. For example if someone buys 4 items each worth 10 dollar installments each month; yes you only have to pay about 40 dollars now but what about all the other items, joining the list? The list slowly snowballs until there is a massive payment of 500 dollars per month due.
The benefits of buy now pay later, if used responsibly can open up a world of possibilities, it’s up to the people of today and the next generation to decide what they want to do with it.
