Buy now, pay dearly? (update)

This Planet Money episode explores the rise of "buy now, pay later" (BNPL) services, detailing how they work, why they've become so popular, and their potential pitfalls. The story follows Amelia, a college student who fell into debt using BNPL for online shopping, influenced by social media trends. The podcast explains that BNPL companies make money by charging merchants higher fees than credit card companies, attracting customers by offering interest-free installments and no hard credit checks. While BNPL can be a good deal for consumers who manage their spending responsibly, it can also lead to overspending and debt, especially among younger demographics. The episode also discusses how credit card companies are responding to the BNPL trend and the potential impact of BNPL on credit scores.