Negatively, the BNPL scheme gives rise to negative externalities, such as developing debt burdens across the society. Some platforms might be exercising market power, and consumer protection could be weak due to lack of regulations.

These issues contest significant assumptions underlying the standard equilibrium model-such as complete information, rational actors, and competitive markets-also proving that real-world markets are much more complicated and thus might require corrective actions through policy.

The winners include the fintechs (like Afterpay or Klarna) because they get more and more users making money for them. The retailers are the other winners in the scenario because they increase their sales margins and decrease cart abandonments. In this scenario, some consumers emerge as winners, especially the ones who handle payments nicely and enjoy short-term interest-free credit.

The losers include consumers due to late fees, late payment, accruing debts, and damages on credit ratings for those who might begin late payments or misunderstand the terms. Traditional lenders may be losing market shares by now. Increased personal debt and financial instability may also have adverse impacts on society at large.