Afterpay, which has millions of users in Australia alone, this week introduced a voluntary spending cap which will let people set their own limits in the app.
David Grafton, a financial consultant and honorary associate at the University of Sydney Business School, told 9news.com.au the caps wouldn’t deter struggling Australians from using BNPL as a line of credit.
“If I was in financial difficulty and in need of additional funds, which I couldn’t afford to get but were available through something like Afterpay – how keen would I be to voluntarily self-impose a cap on my spending?” Grafton said.
“I don’t think it’s going to address any of the problems that relate to people in financial difficulty.”
Grafton said the cap simply won’t work for Australians who desperately …