Skip to content
Connect
Stories

Is there a hidden cost to apps like Afterpay?

People in this story

Prices of U.S. goods across the board have shot up over the past few months, making high-end items even more out of reach for everyday consumers. But if you’ve shopped online since the pandemic began, you may have noticed that when you add items to your shopping cart, you now have options that could make them seem more affordable.

Depending on where you shop, one of those options might be Afterpay. Using Afterpay, with just a click of a button, a $548 Tory Burch bag costs just $137, the cost of Lululemon leggings is cut from $118 to $29.50, and $170 UGG boots now become $42.50. Afterpay—an example of a “buy-now, pay-later” app—allows you to split the cost of an item into four interest-free installments spread out over six weeks. If you miss a payment, you are charged late fees, which Afterpay says are capped at 25% of the item’s price.

Apps like Afterpay have become increasingly popular since the pandemic began due to an overwhelming shift to online shopping, according to Nerdwallet. In 2021, Americans spent $20 million using these apps to make purchases from various retailers, SFGATE reports, and this number may rise in 2022, as the apps start to move into the everyday purchase market by partnering with companies like Rite-Aid. “This partnership will help customers access and spend responsibly on everyday goods with Afterpay’s powerful budgeting tool,” Afterpay said in a statement.

Continue reading at News@Northeastern.

More Stories

Alessandro Vespignani working at his desk

Northeastern receives $17.5 million from CDC to launch infectious disease prediction center

09.19.2023
US citizens Siamak Namazi (C-with glasses) and Morad Tahbaz are greeted upon their arrival at the Doha International Airport in Doha on September 18, 2023.

Ransom payment or effective negotiating? How the US freed five captive Americans in Iran

09.19.2023
Selenis Leyva attends the 'Orange Is The New Black' Final Season Premiere in New York.

Stand-up comedy and academic research converge in new speaker series ‘Latinxs and Comedy’

09.20.23
Featured Events