Study in Colombia details how 'buy now, pay later' distorts spending perception
The study measured the difference between the real purchase value and the value remembered by the consumer. Photo: iStock
TL;DR
- A study in Colombia by SINNETIC analyzed how payment methods affect consumers' recall of their spending.
- The "memory gap" between actual and remembered spending was lowest for cash (2-8%) and moderate for credit cards (6-12%).
- BNPL systems showed the largest memory gap (24-36%), with users often remembering only the installment amount, not the total cost.
- These memory gaps are statistically significant and influence purchasing decisions.
- The findings suggest that payment design has a considerable impact on consumer perception of costs.
- Regulators in Colombia are advised to consider these behavioral risks, as simply providing legal information may not ensure consumer understanding.
- The UK is already treating BNPL as formal credit starting July 2026 to increase clarity and consumer protection.