siliconindia | | DECEMBER 20258M R Yuvatha, Senior Correspondent, Siliconindia In the digital shadows of festive seasons, invisible forces lurk within smartphones, transforming innocent shopping excursions into tales of financial woe. These spectral entities, born from the fusion of Unified Payments Interface (UPI) systems and Buy Now, Pay Later (BNPL) mechanisms, manifest most vividly during massive sale events akin to Black Friday spectacles.As virtual and real crowds converge on the lure of discounts too good to resist, these items increase the urge to spend money, and participants are often trapped in a cesspool of outstanding debts, reverberating long into the future once the celebrations are long over. This has been termed the Buy Now, Pay Later syndrome and it indicates how convenient it can be transformed into a curse, calling out a closer look at its workings and effects.The Festive Frenzy of Digital SpendingWhen the sales are high, online sales go booming. The urgency of UPI and the installment plans of BNPL make a tempting duo, the immediate possession of the goods and the reassuring delusion of affordable prices. Whether it is electronics, fashion or daily needs, customers are in a wave of limited time offers that have been known to go beyond their pre-established budgets.This is particularly in the case of the younger consumers who are mostly going through the first independent financial cycle. Even a light upgrade of a device or a food delivery that a person buys as BNPL on the spur of the moment can silently become a big business, becoming in the middle of the celebrations a kind of financial stress.What sets this wave apart is its democratic appeal, it reaches all demographics, yet the tech-savvy youth are most vulnerable. With minimal friction and maximum temptation, small indulgences quickly compound, creating a hidden web of debt that remains largely invisible until repayment deadlines loom.The Invisible Hands of AIAt the heart of this invisible force lies artificial intelligence. Sophisticated algorithms dissect spending patterns, browsing habits, and even location data, crafting personalized loan and offer suggestions with uncanny precision. Checkout screens are an ideal battleground, and they will offer the BNPL propositions at the most vulnerable time. The temptation of zero-interest rates and deferrals that are flexible so that the cost is eventually compensated makes the temptation irresistible, and invites overspending.Even disciplined shoppers are not immune. Data-driven nudges through notifications, emails, and in-app alerts chip away at financial restraint. The process feels natural, almost serendipitous, but it systematically drives consumption beyond original intentions, transforming users into unwitting participants in their own overextension.The Silent Fallout of BNPL SpendingOnce the holiday glow dims, the consequences manifest. Late payment triggers late fees, broken due dates lead to a cascading effect and the psychological burden accumulates. Fear of payments, the abrupt deprivation of the normal life, the broken routine is implemented as the new standard of many people.To make the situation worse, a significant number of BNPL deals are not subject to credit reporting. Users can look at their scores and be feeling safe, oblivious of accruing, unreported debts. The truth of the seemingly harmless festal excesses comes to bear when big loans EDITORIAL EXCLUSIVEHOW UPI IS DRAINING HOLIDAY WALLETS WITH 'BUY NOW, PAY LATER' LOANS· Hidden Debt: UPI + BNPL tempt shoppers, leading to unseen financial stress.· AI Traps: Algorithms push impulsive spending, affecting even careful users.· Stay in Control: Track spending, set limits, and plan repayments.
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