Americans Are Now Taking Out Loans To Buy Groceries Using Pay-Later Services

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[–]HiddenFox 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (2 children)

When I see zero interest and zero fees I become very sceptical. Someone is paying somewhere along the way.

Most likely, right now the stores are giving discounts/payments to the company handing out the loans for bringing in large quantities of customers. But as more people start using this service the stores will adjust the price along the way. We will all be paying for the service, it will just be hidden in the price.

When we price things here in my businesses we total all the costs for the product and add on a set profit margin. If that comes out to $10 we then add another 2.5% for credit card fees at the end. Everyone pays that even if they pay cash. Point is if everyone paid in cash prices would be 2.5% cheaper. These free points and trips from the credit cards aren't really free.

[–][deleted] 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (1 child)

When I see zero interest and zero fees I become very sceptical. Someone is paying somewhere along the way.

I suspect it's because they get a peek at your bank account and collect data about spending habits to sell. Crypto.com does this too.

You're absolutely right, nothing is free. Someone said if you can't tell what the product the company is making money off of, then the product is you.

Still really handy imo and a better deal than alternatives.

[–]HiddenFox 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (0 children)

All good points. And I agree they are a better option the a payday loan.