Alma, Klarna, Oney, Scalapay… Over the past few months, these online apps have been transforming French consumer habits by encouraging people to buy on credit.
Paying back just a few dozen euros per month—what could be better to give in and instantly afford the latest fashion item or the trendiest pair of sneakers?
That’s what Amélie, 23, does. This student and shopping enthusiast now lives on credit. The secret of these “new generation” consumer credit providers is shifting the cost of borrowing onto retailers. In exchange for this easy payment solution, merchants pay a commission—an option that is increasingly popular.
In Toulouse, a business owner running an online clothing store increased her turnover by 40% thanks to these types of apps.
But what are the risks of this credit-fuelled overconsumption? More and more young people are exceeding the recommended debt threshold of 33% and falling into over-indebtedness…