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India Today
an hour ago
- Business
- India Today
How the subscription lifestyle is fuelling a new wave of debt
Once upon a time, shopping was straightforward; you paid, and that was that. No auto-renewals, no hidden terms. Fast-forward to today, and we're living in a 'subscribe now, forget later' streaming services to daily coffee subscriptions, groceries to grooming kits—almost everything can be delivered on tap. In fact, subscriptions have quietly woven themselves into our everyday spending. Add Buy Now, Pay Later (BNPL) schemes to the mix, and it all feels like a budget-friendly dream, until the bills start piling feels like financial flexibility is, for many, turning into an invisible burden. Especially for millennials and Gen Z, this subscription-led convenience is beginning to reveal a darker side: creeping, compounding SMALL PAYMENTS BECOME A BIG PROBLEMSubscriptions are usually sold as budget-friendly. 'Only Rs 499 a month' or 'less than the cost of one meal," this is how many services market themselves. It sounds manageable, until you're juggling half a dozen of them: music, OTT platforms, cloud storage, fitness apps, and more. Multiply that by twelve months, and it's easy to see where the salary goes. Recent estimates suggest that the average urban Indian holds 4 to 6 active subscriptions at any given time. Since payments are usually auto-debited, the slow leak goes unnoticed, until you start tracking it.A GENERATION OF DIGITAL SPENDERSMillennials and Gen Z, more than any generation before, are fluent in the language of digital convenience. They tap, swipe, and scan through life, using fintech apps, EMI offers, and instant credit. But that same ease is proving risky.'Gen Z is reshaping India's credit landscape with its rapid adoption of digital-first solutions like Buy Now, Pay Later and small-ticket EMIs,' says Anand Agrawal, CPTO and Co-Founder of Credgenics.'Limited financial literacy and impulsive spending habits make young people highly vulnerable to debt traps. Reports suggest nearly 40% of young borrowers carry unsustainable debt, often driven by lifestyle expenses rather than essential needs,' adds marks a shift from previous generations, who largely saved first and spent later. Today, it's more common to spend now and figure out repayments later. A few small payments might feel manageable in isolation, but combine them with BNPL instalments and credit card dues, and suddenly, there's not much salary left at month's A DOUBLE-EDGED SWORDThe popularity of BNPL apps has exploded. After all, who wouldn't prefer to split a Rs 10,000 payment into four easy parts? But this model can be deceptive.'BNPL creates a false sense of affordability,' explains Sameer Mathur, Managing Director, ROINET Solution. "Why pay Rs 10,000 now when you can pay Rs 2,500 later? But when there are multiple Rs 2,500s across platforms, debt creeps in quietly."He describes Gen Z's spending pattern as one of micro-spending without macro-awareness. 'A Rs 499 monthly subscription doesn't feel like a big decision. But when you have several, plus EMI offers and BNPL schemes, it becomes hard to keep up.'THE SOCIAL MEDIA EFFECTadvertisementIn today's world, our feeds shape our desires. Whether it's the latest gadget, trending restaurant, or must-have sneaker, social media platforms like Instagram, TikTok, and YouTube have become powerful drivers of aspirational spending.'Social media amplifies this challenge,' says Agrawal. 'It fuels impulsive purchases driven by FOMO and a desire to keep up, often at the cost of long-term planning.''There's a thin line between inspiration and pressure, and it blurs very easily,' Mathur says. "One scroll through your feed can plant the seed of a dozen new wants, each one just a click away from becoming a subscription or split payment."Every scroll can turn into a spend. Influencers showcasing luxurious lifestyles can create a desire to keep up, even if that means stretching the to that sneaky free trials and introductory discounts, many forget to cancel once the full charges kick in. Bank statements rarely spell it out clearly, so the money leak continues FINTECH PLATFORMS HELPING OR HURTING?Fintech apps have undoubtedly made financial services more accessible, but they sometimes make it too easy to spend.'Fintech platforms present a paradox,' says Agrawal. 'They empower users with budgeting tools and flexible payments, but their frictionless design can also promote impulsive behaviour.'Mathur adds that responsibility lies with both the platforms and users: 'Technology must serve the user—not the other way around. Fintechs have a responsibility to promote financial awareness, not just easy access to credit.'advertisementBREAKING THE SUBSCRIPTION CYCLESo, how can young adults avoid falling into this 'convenience trap'?Agrawal advises, "Focus on financial literacy. Review the subscriptions you've signed up for. Limit BNPL usage to genuine needs, and build a savings habit early."Mathur adds a practical approach, "Track your subscriptions and EMIs. You'll be surprised how many silent deductions are chipping away at your income. Even small spends, like a Rs 200 coffee, add up over time. Use credit responsibly and remember: credit today is a commitment tomorrow."He urges, "Talk about money. There's no shame in being financially conscious.'RETHINKING THE SUBSCRIPTION MINDSETLiving smart doesn't always mean signing up for more. Sometimes, less really is more—less stress, fewer deductions, and more clarity about where your money's going. The subscription lifestyle promises convenience, but it's essential to ask: Is it worth the cost?As the subscription economy grows, it's important to pause and ask: Are these services improving your life, or just draining your wallet quietly? It's time to rethink before you true financial success isn't about what you own today, it's about what you can afford tomorrow.- Ends
Zawya
2 hours ago
- Business
- Zawya
QIB and PayLater introduce Shari'a-compliant BNPL solutions in Qatar
Doha, Qatar – Qatar Islamic Bank (QIB), Qatar's leading digital bank, has signed a Business Partnership with PayLater, a Qatari fintech company specializing in Buy Now, Pay Later (BNPL) solutions. This partnership introduces, for the first time, a shari'a-compliant BNPL solution by a Qatari fintech, which enables customers to make purchases through flexible installment plans, promoting financial inclusion and supporting the growth of Qatar's digital economy. The partnership brings together QIB's trusted banking expertise and PayLater's fintech innovation to offer seamless, shari'a-compliant financial solutions tailored to the evolving needs of consumers and merchants in Qatar. Aligned with QIB's sustainability agenda and the Qatar Central Bank's (QCB) strategy to encourage collaboration between banks and fintech companies, the collaboration reinforces QIB's commitment to expanding digital financial services while supporting the local fintech ecosystem. Commenting on the partnership, Mr. Tarek Fawzi, QIB's General Manager – Wholesale Banking Group, said: 'Our partnership with PayLater represents a strategic milestone in QIB's mission to revolutionize financial services by integrating innovation and accessibility, in line with Qatar Central Bank's strategy to support the collaboration between banks and fintech companies. We are pleased to be at the forefront of Innovation in Islamic banking thru our partnership with PayLater, which represents a strategic milestone for QIB, this is in addition to extending our support to Qatari start-ups specialized in technology in line with Qatar National Vision 2030. By joining PayLater's fintech expertise, we are enhancing our offering with tailored, customer-centric solutions that empower individuals and create new growth opportunities for merchants, reinforcing our role as a leading digital bank.' Mr. Mohammed Al-Delaimi, Co-founder and Managing Partner of PayLater, said: 'We are delighted to start this valued partnership with Qatar Islamic Bank to introduce BNPL solutions in Qatar. These solutions are transforming how consumers manage their finances while offering merchants new avenues to grow their business. Our partnership with QIB highlights the potential of collaborations between finTechs and banks to create customer-centric solutions that redefine the financial landscape in Qatar.' For more information, please visit
Zawya
5 hours ago
- Business
- Zawya
Contactnow and PayTabs Egypt team up to make digital payments more accessible through BNPL solutions
ContactNow and PayTabs Egypt empower users with seamless, flexible payment journeys using BNPL service Cairo: As part of Contact Financial Holding's continued efforts to solidify its leadership in fintech landscape, ContactNow, the Group's digital arm, has announced a strategic partnership with PayTabs Egypt, the award-winning payment orchestration solutions provider. The partnership aims to empower both merchants and consumers by enabling them to finance their purchases seamlessly through ContactNow's Buy Now, Pay Later (BNPL) service, now fully integrated into PayTabs Egypt's delivering smarter, secured payment experience. This partnership reflects the shared commitment of ContactNow and PayTabs Egypt to driving digital innovation and simplifying financial services across Egypt. By combining ContactNow's flexible BNPL solution with PayTabs Egypt's robust payment infrastructure, both companies are working together to expand access to smart, customer-centric payment experiences. Built on the strong foundation of Contact Financial Holding and powered by PayTabs Egypt's secure and scalable platform, this integration enables merchants to offer faster, more seamless checkout journeys, giving customers the freedom to finance purchases with ease, and without the friction of traditional procedures. 'At ContactNow, we are committed to developing smart and fast digital financing solutions that meet the needs of both individuals and businesses. Our partnership with PayTabs Egypt marks a strategic milestone in expanding flexible payment options and reinforces our role in driving digital transformation across Egypt's financial sector. It also reflects our ongoing mission to support the evolving needs of today's digitally minded users.' Stated, Ahmed El Moselhy, Business Director at ContactNow. 'Our partnership with ContactNow marks another step in PayTabs Egypt's mission to enable smarter, more accessible digital payments for all businesses by combining our secure payment orchestration infrastructure with ContactNow's innovative platform, we're creating real value for merchants and their customers, making every transaction simpler, faster, and more reliable.' Commented, Haytham Morsy, VP Commercial & Business Development at PayTabs Egypt. This strategic alliance reinforces ContactNow's growing network of fintech partners and aligns with the broader vision of Contact Financial Holding and PayTabs Egypt to accelerate digital transformation and expand financial inclusion across Egypt. By extending access to diverse, customer-centric financing solutions that meet the evolving needs of modern businesses and consumers. As Egypt's fintech landscape continues to advance, both organizations are uniquely positioned to scale impactful, future-ready services that empower users, drive merchant success, and support a more inclusive digital economy. About Contact Financial Holding: Contact Financial Holding SAE ( is the largest non-bank financial services provider in Egypt changing the way people and business access finance and insurance. Operating since 2001, Contact adopts innovative approaches in extending its services, offering quality services with simple procedures and reaching a wide client base through its various subsidiaries, affiliates and partners. Contact's financing division offers market leading services including consumer financing for new and used passenger and commercial vehicles and an array of consumer durables through Contact Credit and Contact CrediTech, Mortgage finance through Contact Mortgage, as well as commercial finance through Contact Leasing and Contact Factoring. Contact operates in insurance through Sarwa Insurance and Sarwa Life Insurance. Contact also offers an array of corporate financing services including securitization, structured debt and debt investment management. Contact Financial Holding SAE is authorized and regulated by the Financial Regulatory Authority (FRA). About PayTabs Egypt PayTabs Egypt is an award-winning payment solutions provider, empowering businesses of all sizes with simple, secure, and innovative payment orchestration technologies. A member of the PayTabs Group - MENA's award-winning payment orchestration powerhouse and one of the top 100 fintech companies in the world - PayTabs Egypt delivers customized payment solutions including QR payments, online invoicing, and ecommerce integrations for local businesses. PayTabs Egypt advances the country's digital payments landscape with smart, secure, and scalable solutions, supported by trusted partnerships and local market a strong focus on local market needs, PayTabs Egypt partners with banks, platforms, and enterprises to enable cashless transactions and power the nation's transition toward a digital economy. Leveraging deep local expertise, advanced infrastructure, and a commitment to merchant success, PayTabs Egypt plays a leading role in shaping the future of digital payments in the country.
The Sun
6 hours ago
- Business
- The Sun
Buy now, pay later: A convenient trap for young Malaysians
USING the 'buy now, pay later' (BNPL) scheme for the first time felt harmless. Just three easy payments for a pair of shoes that were not really necessary. It seemed like a smart move at the time – no interest, no hassle and no guilt. But that mindset is exactly what gets so many young people into trouble. From 2020 to 2025, more than 5,189 Malaysians under the age of 34 were declared bankrupt. Most of them were between 25 and 34, an age group that should be building their financial future. This is not just a statistic; it reflects a growing reality for many young adults trying to manage life's expenses with limited income and increasing pressure to spend. With BNPL so widely available and heavily promoted, it is no surprise that more people are relying on it. The recent Consumer Credit Bill passed in Parliament shows how urgent the problem has become. The new law introduces the Consumer Credit Commission to oversee BNPL and other non-bank credit providers. It is a step in the right direction but the fact that it is even needed speaks volumes. BNPL is appealing because it feels light at first. No upfront payments, offers interest-free instalments and fast approval. But the catch comes later, quietly. Miss one instalment and there is a penalty. Miss a few and the debt will grow without warning. Penalties between RM10 and RM50 may not sound like much until they keep stacking up. It becomes easy to lose track of how many items are being paid off. What began with one small item turns into four or five ongoing commitments. BNPL encourages impulse decisions. The thought process is no longer 'can I afford this' but 'can I split this'. Bank Negara reported that most BNPL users earn below RM3,000 a month. For many, even one missed payment affects rent, food or transport. BNPL has helped some low-income families afford essentials, like baby formula and groceries, especially during difficult times. That is understandable but it should not become the default way to survive. In the first half of 2025 alone, Malaysians spent RM9.3 billion through BNPL, of which RM121 million is overdue, and the numbers are not slowing down. What is worrying is how normalised it has become. They are not only used for emergencies or needs but also for clothes, gadgets and online shopping sprees. These habits can lead to debt that may seem manageable but can become overwhelming over time. Therefore, regulation helps. However, awareness matters more. Many still do not grasp the risks they are taking. Educational institutions should teach students on money management. Financial literacy is a skill that needs to be taught and cultivated early, not learned after it has become a problem. BNPL is not an enemy but without control, it can turn into a cycle that will be hard to break. The best solution is to have self-discipline before it is too late. Darren Ong Wei Shen is a student at City University Malaysia. Comments: letters@
Finextra
13 hours ago
- Business
- Finextra
Splitit partners Antom
Splitit, the only embedded white-label platform that enables card-linked installment payments using consumers' existing credit, and Antom, a leading provider of merchant payment and digitization services under Ant International, today announced a strategic partnership aimed at empowering merchants with a new, frictionless installment payment option. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The collaboration integrates Splitit's technology into Antom's next-generation payment processing platform and merchant network, beginning in the U.S. and expanding globally. 'We're excited to partner with Splitit to expand access to card-linked installment solutions across our merchant network,' said Gary Liu, General Manager of Antom, Ant International. 'This collaboration supports our commitment to helping merchants achieve sustainable growth across international markets. Splitit's unique approach aligns with our vision of delivering innovative, value-added solutions and empowering businesses to better serve customers at the point of purchase.' Antom offers unified, vertical-specific digital payment solutions to serve businesses around the world. It supports merchants to integrate over 300 payment methods, enabling them to connect with consumers in more than 200 markets, with the flexibility to accept payments in more than 100 currencies. In addition, it provides digitization services to help merchants enhance user engagement and unlock more growth opportunities with AI and privacy-preserving computing tools. Through the partnership, Splitit's installment technology will be seamlessly integrated into the checkout experience for merchants using Antom's platform. They will be able to split purchases into monthly payments directly at checkout, using their existing credit cards—with no underwriting or additional fees. For merchants, this provides a powerful, low-friction way to boost approval rates, increase average order value and improve conversion with minimal integration required. As part of the collaboration, the two companies will streamline cross-border commerce, simplifying international payment processing for merchants. Recent research underscores the growing merchant preference for card-linked installment options. A study by Splitit and PYMNTS found that 72% of merchants rate card-linked installments as their top choice over traditional Buy Now, Pay Later (BNPL) programs. Additionally, nearly 90% of merchants believe these installments are key to boosting customer acquisition and retention. 'With Antom, we're accelerating our push to redefine the checkout experience, making payments smarter, faster and more consumer-friendly,' said Nandan Sheth, CEO of Splitit. "This partnership brings the power of installment payments directly into the checkout flow through Antom's global platform—no applications, no credit checks, just seamless card-linked flexibility. Together, we're eliminating friction and empowering merchants to boost conversions with a more inclusive, intuitive payment option, scaled globally from day one." By skipping applications and new loans, Splitit streamlines the process for both merchants and shoppers—no hidden fees, and no changes to the consumer's existing credit card relationship. As a result, merchants can offer flexible payments at scale, with less complexity and higher approval rates.
