It’s payday, and after setting aside the amount you need to afford your rent, food and bills, you have just enough money left to treat yourself to a little something. As you begin to check out at your favourite online retailer, you notice a new icon in the payment section: Buy Now, Pay Later.
BNPL is a form of short-term loan, which typically lasts for six weeks and allows consumers to pay for a product over several interest-free instalments. Some of the most famous BNPL apps include Klarna, who have 150 million users, and Affirm, whose user base grew by 23 per cent in the year leading up to February 2025.
Reliance on BNPL soared during the cost-of-living crisis and is projected to continue growing, especially amongst certain demographics. For example, 64 per cent of BNPL users are below the age of 40, while women are almost twice as likely than men to use apps like Klarna. So, how are BNPL schemes courting young female customers, and why is this a problem?
Mind Games
Picture the logo of the first bank or credit bureau that comes to mind. Chances are, it will include a colour like navy or black, which typically connotes trustworthiness and professionalism. Now consider the baby pink of Klarna, the pastel mint of ClearPay, the vibrant purple of Zip and the neon, Brat-like green of Zilch. These are all funky, energising hues and quite unlike the traditional tones used by other businesses to appeal to younger shoppers. But the chirpy branding hides the dark side of BNPL services.
A 2024 study published in Sage Journals sought to determine how BNPL schemes affect consumers’ spending decisions. It found that framing prices in segregated terms, by displaying the amount that would be paid either weekly, fortnightly or monthly, instead of the lump sum, reduced a purchase’s ‘perceived cost’ and increased consumers’ belief of being in control of their budget. Ultimately, despite paying the same amount they would have done had they bought the item in full, psychologically, they felt as though they were better off. It was concluded that BNPL ‘alleviates [consumers’] perceived financial constraints.’
The issue, however, is that the dissociation between being able to make a purchase and paying for an item encourages overconsumption. Despite most BNPL schemes requiring users to be over 18 and have some credit history, research indicates that the section of our brains in charge of decision-making does not reach full maturity until the age of 25. So when young people, who are becoming increasingly materialistic, struggle to afford all the stuff they want, the lure of making an easy, bite-sized purchase can be hard to resist.
Gendered Advertising
Also, have you noticed that almost every advert for BNPL is aimed at women? Whether it’s a twenty-year-old skipping merrily as she carries multiple bags of shopping, or a young lady grinning inanely as she lifts her credit card to the card reader, I have never seen anyone look quite so happy to part with their money. There is a reason why the fairer sex is the main target. Women still earn less than men on average and make up a large proportion of those working in part-time roles. As a result, women are more likely to feel squeezed financially. However, they are also generous spenders and are known to treat themselves to little luxuries (see the ‘lipstick effect’), which helps to explain why women account for over 70 per cent of spending in our economy. Women’s lower earnings and their higher willingness to spend collectively make them the ideal prey for BNPL schemes. And when you throw a celebrity with a cult following into the mix, things only become more complicated.
Paris Hilton has been the global face of Klarna for the past two years. Their advertising campaign sees the 44-year-old teaching her pet pooch to buy a matching jumpsuit using Klarna, and answering a bedazzled corded telephone to comment on how ‘smooth’ the transaction was. Plus, there is a whole load of pink. The advert’s silliness has helped it to become a viral phenomenon, but it also feels particularly manipulative. The obvious feminine energy of the campaign, coupled with plenty of nods to the 2000s, aims to create a sense of nostalgia, reminding young women of their childhoods. Klarna’s intentions are clear: by likening its BNPL scheme to a period of women’s lives when they had no financial obligations, it reinforces the idea of spending money as something fun and innocent. But in reality, the advert takes advantage of women’s financial worries during a challenging economic period.
Risky Business
It is deeply concerning that Klarna chose Hilton to become its ambassador in the first place. As a millionaire heiress known for her ‘shopping prowess,’ she is one of the least likely people to ever have to rely on a BNPL scheme to afford what she wants. But, if you think about it, it’s pure marketing genius. Paris’ collaboration with Klarna implicitly suggests that if you sign up, you too will be able to enjoy her lavish lifestyle. Even when she is not featuring in a Klarna advert, she is always representing the brand. So, when she posts about her latest shopping spree or an expensive gig, she is indirectly encouraging others to spend money like her. And when these customers struggle to foot the bill, who will they turn to? Klarna, of course.
Everything about the brand’s advertising campaign downplays the seriousness of opting for BNPL. Despite being interest-free, these apps reserve the right to charge users ‘late fees’ should they default on their payments. Not only does this reflect badly on a person’s credit score, but it can also lead to spiralling debt, evidenced by the fact that 31 per cent of those on BNPL schemes find that repayments on loans have become unmanageable. Additionally, users making purchases above £100 with BNPL do not get Section 75 protection. Should users receive a faulty or misleading item, they have no way to claim their money back.
BNPL apps are luring in unsuspecting young women with colourful branding and playful adverts, concealing the potential risks of these seemingly efficient arrangements. It is time to expose BNPL for what it truly is: a form of financial entrapment.
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