Gen Yers and Zers are turning to payment services like Klarna, Afterpay, and Laybuy to help their wallets keep up with their shopping habits. But due to a lack of education regarding financial responsibility, how are these ‘buy now, pay later’ services impacting their financial futures?

'Buy now, pay later' schemes offer a short-term solution for shoppers in a tight spot, but some say they can also lead to credit score damage. As people navigate financial uncertainty brought on by the pandemic, a Klarna initiative is offering education instead of a 'buy buy buy' message.

Access to credit tends to be based on financial history. The X1 card is hoping to change that with access dependent on earnings, rather than credit score. With the pandemic leaving many worried that missed payments will impact their financial health, providers offering flexibility are likely to resonate.

Wagestream lets people see what they have earned in real-time and can provide access to their wages at any time during their pay cycle. This can prevent people from going into overdraft or taking out expensive payday loans – particularly important during the financial uncertainty of the pandemic.