Dear Buy Now, Pay Later companies,

The path to hell is paved with good intentions.

Buy now, pay later, as we know it today, was a concept born around 1840 by furniture and farm equipment manufacturers looking to make their products more accessible. In the 20th century, with the introduction of the automobile into the mainstream, installment payments because even more popular.

Making a big-ticket purchase in installments is justifiable — especially for buying an asset that can generate income or appreciate. What isn’t justifiable is how available you and your company are making buy now, pay later options for everyday purchases. Consumers can now make everyday purchases, like dinner from Chipotle or groceries.

“Consumers need this,” you say. “We’re giving them options and flexibility in uncertain economic times,” you say. If you shut one eye and squint the other, you may be able to fool yourself into seeing what you want to see. That’s the beauty and the curse of the human mind. You’re asking them if they’d like to be kicked in the crotch or punched in the face. Options!

But even if I acquiesce and agree that BNPL offers consumers flexibility and options, it’s not the only truth and those are not the only consequences. The bigger question that needs to be tackled is whether or not the flexibility and options that BNPL gives consumers are worth the tradeoff.

I am of the opinion that they aren’t worth it. BNPL perpetuates the debt cycle, the debt delusion cycle, and the cycle of bad financial decision-making. The efforts and human resources your companies put into exploiting vulnerable people would have a better societal impact by diverting them to help solve the problem somewhere upstream. Let’s unpack some of this.

This is the debt delusion cycle.

Consumers use your product as a balm to feel better off than they really are. There is short-term satisfaction when folks can still afford necessities and luxuries on credit. And as long as your offering can soothe the pain of affordability, people may not feel the need to change. And I’m sure you know this.

As long as consumers rely on a short-term solution like yours. Owners and shareholders can continue to keep wages low, while they extract profits. It’s a double win for companies because they get away with unsustainable wages while still being able to sell products and services to the very labor force that can’t afford them. And I’m sure you already know this too.

This is the debt cycle.

Once consumers get into debt, especially consumer debt like BNPL, they’re more likely to get trapped in a neverending cycle of borrowing. They have too much debt to afford things outright, so they must use more debt. But you already know this, right? Because 90% of shoppers using Afterpay are repeat customers (!).

This is the cycle of bad financial decision-making induced by chronic stress, anxiety, and worry due to inequality and predatory lending (that’s you guys!).

Folks chronically stressed about money because they don’t have enough or are juggling multiple BNPL debts at once are less likely to make financial decisions rooted in cognition. Instead, their stress and anxiety cause them to be reactive and emotional. But, again, you already knew this because it’s an integral part of your business plan.

Maybe it’s too late. The bell has been rung. The toothpaste is outside of the tube. Credit cards are here to stay; perhaps that’s the case with all of you.

I think what’s so frustrating to me is that I’m not asking for a lot. I’m not asking for world fucking peace. I’m just a person writing on the internet, asking you to be less shitty to human fucking beings. That’s it. Be less shitty. You don’t even need to be great or excellent. Just less shitty. You can do that, can’t you? Imagine your consumers as little kids and look into their eyes and think about how you can be less shitty to them.

I originally sat down to write a piece to my readers, the consumers who might be tempted to use your product. I wanted to warn them about the dangers of BNPL. And while I believe in focusing on our agency and controlling what we can, this is one way for me to exercise mine. I reject your offer, encourage other business owners to do the same, and hope you’ll see the light. Your product is like cigarettes for people’s financial lives. Is that the legacy you want to leave behind?

Let me give you credit: you’re on the right path because the problem you’re attempting to solve is worth solving. But your approach is severely lacking in imagination.

But don’t forget: Your potential for change is limitless. And your actions and intentions reverberate into the universe forever. In every moment, you have a choice. Don’t miss this opportunity.

Be better,

Paco

P.S. To my wonderful readers, comment your name below to sign this letter with me.