Too good to be true? The rise of buy now, pay later

The service is mainly used by young women to spread the cost of clothing and shoes

Klarna tells retailers they  typically see a 68 per cent increase in average order value with Klarna Instalments. Photograph: iStock

Klarna tells retailers they typically see a 68 per cent increase in average order value with Klarna Instalments. Photograph: iStock

If Apple sees value in something, then it’s often a sign of significant growth to come. This is what happened in July when the US gadget giant said it was working on a service to let shoppers pay for purchases in instalments, as it makes a move into the rapidly growing “buy now, pay later” market.

And just last week, Square, the payments firm of Twitter co-founder Jack Dorsey, announced it would purchase buy now, pay later pioneer Afterpay Ltd for $29 billion (€24.4 billion) in what was the biggest deal yet for Square and a record buyout of an Australian business.

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