3. Improved BNPL disclosures designed with behavioural insights in mind can improve consumer awareness of the risks, but may not necessarily change consumer behaviours, supporting the need for consumer protections.

2. BNPL usage leads to an inflated perception of available funds, leading to an increase in spending. We also show the anticipatory effects of credit innovations such as BNPL whereby the mere expectation of future access to BNPL is found to increase current debit card spending.

Key takeaways from our research:
1. Financially vulnerable individuals use BNPL to a greater extent, more frequently and simultaneously across multiple providers.