Source

Buy Now, Pay Later Credit: User Characteristics and Effects on Spending Patterns

working paper using transaction data, not peer-reviewed Di Maggio, Williams, and Katz (2022), NBER Working Paper 30508

Claim this source supports

“BNPL access is associated with higher total spending and a higher retail share, which the authors attribute to a liquidity flypaper effect.”

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Why Four Small Payments Feel Cheaper Than One — video poster frame

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Business

Why Four Small Payments Feel Cheaper Than One

Partitioned pricing breaks one total into several smaller amounts, and because the pain of paying is felt per payment rather than per purchase, each small number registers as less painful, so the whole purchase feels li…