The demand for Buy Now, Pay Later (BNPL) application has received high demand, especially involving users from the United Kingdom.
Not only does it help customers buy something by paying in installments, but it also helps customers save money.
However, according to The Star’s report, one of the most popular applications, Zilch, will see customer transactions logged on their credit report.
In the future, if there is negligence in making monthly payments, it will affect users.
In addition, The Financial Times also reported that there is an extraordinary demand in all age groups in the United Kingdom.
Based on a study by the Centre for Financial Capability showing that 54 percent of youth aged 18 to 24 expected to use this application next year.
This is an increase of six percent compared to the number recorded last year.
Surprisingly, it stated that the demand has also increased among older people, which saw almost a fifth of over 65-year-olds had used the products and intended to do so in the next 12 months.
There are no specific rules to apply for the loan as it remains unregulated in the UK.
The government, however, is expected to outline new regulations to enhance customer protection and safeguard the interests of both parties, consumers, and providers.