Many of us are familiar with ‘Buy Now, Pay Later’ payment methods. These payment methods allow you to order a product and pay later. Convenient, but at the same time very dangerous and undesirable. According to the Authority for the Financial Markets, 1 in 5 online shoppers who opt for deferred payment face collection costs. Many young users end up at collection agencies, and this has even doubled in the past 5 years according to the AFM. So, is it time for a digital solution to an old-fashioned habit of ‘saving first, then buying’?

Problem ‘Buy Now, Pay Later’: free is not always free

Providers of ‘buy now, pay later’ services advertise their service as ‘free’. That sounds attractive, but there are risks. “We find that the costs for late payment are unclear and possibly unlawful,” states the annual report. For many consumers, ‘free’ is not free at all. If you do not pay on time, it incurs a penalty and collection costs. These companies profit when you miss a payment deadline. The income from these penalties accounts for between 20 and 40 percent of total revenue, notes the AFM.  That is why these companies benefit particularly from a lack of clarity regarding the payment deadlines and collection costs. Regulation and alternatives are desperately needed, say debt counsellors who speak of an “explosion of debt”.

Stimulus for unrestrained consumption

Among others, the Credit Bank of Rotterdam, part of the municipality, notes a strong increase in claims from pay-later apps. “Almost all young people I assist have debts with Klarna or Riverty,” says debt adviser Monique van Collenburg at RTL Nieuws. “Among young people, it is actually quite normal to shop this way. It is simply too easy to order product after product. Plangroep, an organisation that offers debt assistance in 60 Dutch municipalities, also warns that clients are piling up debt due to Klarna and Riverty. These payment apps are often still available to people who are already under financial management.

Paradigm shift ‘Save Now, Enjoy Later’

As the pitfalls of paying afterwards become increasingly apparent, it is time for a paradigm shift. Time for Save Now, Buy Later. An old-fashioned habit in a modern guise. Through Potje, you can specifically save for a product or service of your choice. Users choose a goal for their pot, such as a holiday to France or new sneakers, and are then assisted in saving for it. Once the amount is reached, the user can confidently make the purchase without the fear of debt. Want to know more about Potje, click here.

How Potje encourages saving:

• Super clear what you are saving for. When you save for a visible goal, you save more.

  
  

• Money is safely set aside and not in your current account. This way, you won’t touch your hard-earned savings.

  
  

• You can save together or others can contribute to your pot.

  
  

• While saving, you receive fun and motivating messages to keep you going.