One of Australia’s top financial advisors has called out the Buy Now, Pay Later (BNPL) sector’s business model saying its supposed benefits are illusory. In his latest report, “Afterpay: The Hype and the Reality”, Prof. Janek Ratnatounga, CEO of the Institute of Certified Management Accountants (CMA) Australia & New Zealand and a former consultant to the World Bank, said that the top two selling points BNPL players use to differentiate themselves from traditional credit provider– interest-free and no credit check- are just enticing illusions. He said that while BNPL users usually pay their transactions in four interest-free instalments, any missed or late repayments incur a “late fee,” which, while argued to be different and cheaper than credit card interest, is not. Using Afterpay, the sector’s leading player, as an example, he explains that late fees are relative to the amount and days outstanding from the last payment, which works out to be an Effective …