Buy Now Pay Later Options'Honesty is the Best Policy' Series

Good day - may God's peace and blessings be with you.

Certain times have certain business practices that have a profound impact on markets. Some of those business practices, which have been accepted by the people as standard, do not conform to the principles of the Kingdom of God.

In this post we look at the 'buy now, pay later' (BNPL) option, a payment option that has risen in popularity among consumers, especially younger ones.

Buy now, pay later (BNPL) – An Overview

A business can offer BNPL option in their online or physical store through a payment provider. This option allows customers to make purchases without having to pay immediately. BNPL provides a seamless check-out experience, especially online, where the purchase is completed with one or just a few clicks. In lots of online, but also physical stores, BNPL has quickly replaced credit cards and has become a mode of everyday spending.

Customers can choose to pay either by invoice or in instalments. Payments by invoice can be converted into instalments once an invoice becomes due. Paying by installment comes with additional costs for the customer, namely interest charges.

BNPL – The Consumer Side

With BNLP it has never been easier to buy something that can’t be afforded. Influenced by targeted ad campaigns and the fear-of-missing out, consumers are tempted to make purchases on impulse, especially for non-essential items. This leads to consumers piling up bills from different platforms and/or shops quickly. In some places on the earth, one can even buy everyday items like a sandwich for lunch on invoice or instalments now.

Keeping track of the individual BNLP slips requires a certain discipline on the consumer side, paired with financial education. Due to the lack of it, too many consumers lose sight of their BNPL expenses, leading them to being behind in paying off their debt. While being behind in payments, the impulsive buying behavior cycle continues, keeping consumers trapped in a cycle of temptation and debt. Young people appear to be more vulnerable for falling into the debt trap caused by impulsive buying behavior.

Modern society encourages a consumption-driven mindset, often pressuring people to live beyond their means. But it is also an expression of a desire on the individual level – the desire of things. If we desire things more than God we are prone to acting outside of God’s design for us, making us vulnerable to step into temptations that keep us in bondage.

Jesus teaches us that a good life is not about wealth and that we should guard ourselves against greed. If we follow Jesus' teachings, we live in contradiction to what society says. Companies spend vast sums of money trying to convince us that we can lead a happier, more fulfilling, and more pleasant life if we buy more of their products.

Luke 12:15 (ESV) “And he said to them, “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.”

Debts that cannot be repaid leave one in a state of bondage, and one remains obligated to the creditor until the debt is paid in full. Debt consumes a person’s freedom, time, and wealth. Such a situation leads to increased stress, as well as relational and health problems, with negative effects for the person in debt, his/her family, and community. A person in debt carries a heavy burden that leads to hopelessness and despair.

Proverbs 22:7 (ESV) “The rich rules over the poor, and the borrower is the save of the lender.”

If we consume today what we hope to generate in the future, nothing will remain of the fruits of our labor. If we act like this, we are taking great risks, because we don’t know if and what we will be able to generate in the future.

Proverbs 27:1 (ESV) “Do not boast about tomorrow, for you do not know what a day may bring.”

Business Owners as Stewards of God’s Kingdom

Business owners are mothers and fathers to a community, and in this role, they are to ensure that the community thrives and can bear fruit. When community members are in debt, they can no longer produce sufficient fruit because they are too preoccupied with worrying about their situation. Their generosity towards the community decreases. The risk of choosing the wrong path to escape or cope with their situation is high.

The Kingdom of God is built over multiple generations. Every generation should be able to build on the achievements of the previous generation. A generation in bondage will not be able to serve the Kingdom of God to its full potential.

Business owners are stewards of the resources given to them, and they are to use them in accordance with the principles of God’s Kingdom. God's laws are characterized by justice and social responsibility toward the poor and vulnerable. God insists that the poor and vulnerable are treated well so that they can improve their situation gradually. If business owners offer payment options that have the potential to become a debt trap for the members of the community, they will contribute to get and/or keep a generation in bondage.

The well-being of the whole community over profit

Business owners can contribute to the well-being of their community by carefully considering the payment options they offer their customers when making a purchase. Payment options that have the potential to trap the customer in debt should be avoided. On some online platforms, the business owner has no decision power regarding the payment options offered. These are provided by the respective platform provider as part of their payment option portfolio. Here, the business owner can decide whether to use the platform as sales channel for his business.

1 Corinthians 10:24 (ESV) “Let no one seek his own good, but the good of his neighbor.”

Mark 10:17-25 (ESV) “(17) And as he was setting out on his journey, a man ran up and knelt before him and asked him, “Good Teacher, what must I do to inherit eternal life?” (18) And Jesus said to him, “Why do you call me good? No one is good except God alone. (19) You know the commandments: Do not murder, Do not commit adultery, Do not steal, Do not bear false witness, Do not defraud, Honor your father and mother.’” (20) And he said to him, “Teacher, all these I have kept from my youth.” (21) And Jesus, looking at him, loved him, and said to him, “You lack one thing: go, sell all that you have and give to the poor, and you will have treasure in heaven; and come, follow me.” (22) Disheartened by the saying, he went away sorrowful, for he had great possessions. (23) And Jesus looked around and said to his disciples, “How difficult it will be for those who have wealth to enter the kingdom of God!” (24) And the disciples were amazed at his words. But Jesus said to them again, “Children, how difficult it is to enter the kingdom of God! (25) It is easier for a camel to go through the eye of a needle than for a rich person to enter the kingdom of God.”

1 Timothy 6:10 (ESV) “For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.”

Exodus 22:25 (ESV) “If you lend money to any of my people with you who is poor, you shall not be like a money lender to him, and you shall not extract interest from him.”

Kingdom business relationships provide a win-win for buyer and seller. It is never set-up for one person to prosper at the expense of the other person.

🧂 Salt: Honesty, integrity, responsibility, seeking good for the whole community

🕯️ Light: Transparent payment options that do not encourage debt traps