3. Improved BNPL disclosures designed with behavioural insights in mind can improve consumer awareness of the risks, but may not necessarily change consumer behaviours, supporting the need for consumer protections.
2. BNPL usage leads to an inflated perception of available funds, leading to an increase in spending. We also show the anticipatory effects of credit innovations such as BNPL whereby the mere expectation of future access to BNPL is found to increase current debit card spending.
Key takeaways from our research:
1. Financially vulnerable individuals use BNPL to a greater extent, more frequently and simultaneously across multiple providers.
Excited to share our research on Buy Now Pay Later (BNPL) products! We have two publications on the topic.
Staff Insights
centralbank.ie/research-exchaβ¦
Research Technical Paper
centralbank.ie/research-exchaοΏ½οΏ½οΏ½
Thanks to the organisers of IEA and the Irish behavioural economics group for organising this session.
