The consumer watchdog has expressed concern about the proliferation of buy-now, pay-later (BNPL) schemes and warned that they are making it easier for people to buy products they don’t need and can’t afford.The Competition and Consumer Protection Commission has also noted how there is a lack of education about how the products work and that could see some financially vulnerable people falling further into debt after being targeted by retailers offering what they believe to be free credit. In recent years retailers and service providers have been teaming up with lenders like Klarna, Humm and others to allow shoppers to spread the cost of products and services they can’t immediately afford. Typically a person is allowed to spread their payment over three months rather than paying everything up front. As many as one in four shoppers in Ireland say they would consider using a buy-now, pay-later service to buy items otherwise outside their budget, according to Central Bank research. Has the Irish building sector got themselves hooked on Government subsidies? Listen | 39:58Appearing before the Oireachtas finance committee on Wednesday the chairman of the CCPC Brian McHugh said their increasing popularity was not without its problems and he highlighted how the most financially vulnerable consumers were more likely to used such schemes.He also noted how the instalment payment schemes were even being marketed in some cases as a tool for savvy financial management while the downside risks that could see people becoming more indebted and in some instances impact their credit rating were not as well known as they should be. McHugh noted that instalment payments were “a long-standing feature of the consumer landscape”. However he said that BNPL products were different as they are “used in minor day-to-day purchases and are even promoted as financial management tools.”While people use BNPL schemes most commonly to buy technology and clothes there are also many examples of people buying takeaways, effectively on credit.McHugh pointed to research, including studies by the Central Bank, that have recorded “a sixfold increase in global BNPL usage between 2019 and 2023 and shows concerning trends.”He said the scheme “often makes consumers more likely to buy things they don’t need and spend significantly more than they had planned”.The chairman of the commission added that they were “more likely to be used by those who are already financially vulnerable.”The CCPC highlighted Central Bank research which suggests that as many as one third of Irish consumers “do not realise that BNPL is a form of credit”.Mr McHugh said the CCPC had repeatedly warned of the risks of BNPL in its consumer awareness campaigns and would continue to collaborate with other stakeholders to increase financial literacy in this area.Sinn Féin TD Pearse Doherty was sharply critical of the proliferation of such schemes and he said that some companies use them and target people who can’t afford the products they are buying. He said some operators were aware that using BNPL schemes would cause difficulties for some who would go into arrears on their payments and be hit with additional charges as a result.