, Columnist
Buy Now, Pay Later Is an Innovation That’s 200 Years Old
The combination of Square and Afterpay puts a techie spin on the 19th-century consumer-credit breakthrough that made sewing machines and cars affordable to the middle class.
Nothing new about that.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Everything old is new again. Witness fintech giant Square’s recent acquisition of Afterpay, a company that enables consumers to buy now and pay later via regular payments administered by the Australia-based company.
Afterpay appeals to young millennials eager to move beyond conventional forms of financing such as credit cards. This may seem cutting edge to the youngsters, but it’s nothing but a reboot of a credit system their great-great grandparents knew and loved: the installment plan.