264
54% of Gen Z Shoppers Use Pay Later Plans to Buy Groceries
(www.pymnts.com)
Pictures, Videos, Articles showing just how boring it is to live in a dystopic society, or with signs of a dystopic society.
Rules (Subject to Change)
--Be a Decent Human Being
--Posting news articles: include the source name and exact title from article in your post title
--Posts must have something to do with the topic
--Zero tolerance for Racism/Sexism/Ableism/etc.
--No NSFW content
--Abide by the rules of lemmy.world
I'm reading this as a European and have questions... We all know that there is non free money. So, what's the business model? Making you use the card more by giving you "free" money and making the shops pay more to use the payment service, so that the shops then increase the prices, so that you pay the same as before (considering increased prices and cashback), but are now using the payment system a lot more?
Few tricks.
Interest rates if you don't pay off the full amount
Just nitpicking because I enjoy these thoughts:
When the shop increases prices, it has to do it for all the customers, including the ones without credit card. So a part of the cost is offloaded to other types of customers. While credit card customers should see a slight increase in price, it should not be as much as they saved previously. So still a net win for them, at the cost of others.
As others pointed out, the real scheme is probably entirely different.
A lot of smaller businesses charge you extra for using the credit card or something similar.
The bigger businesses don’t do that.
Of course the bigger businesses do. it's rolled into operating costs and is reflected in their pricing.
You just don't end up with a different price differentiated by the transaction method.
Credit card companies make money off selling your spending habits to information brokers.
The business model is depending on card users accumulating interest. So they give you perks to get you to use the card and enough people won't pay it off every month that they'll make all their money back and more.